International edition
June 16, 2021

Forecasts Macquarie Equities Research

Gaming tax may rise after concession expiry in Macau

(Macau).- Macquarie Equities Research forecasts that Macau’s effective gaming tax rate is likely to rise when the current concessions and sub-concessions expire in 2020 and 2022. In Macau, casinos pay a 39% effective tax on gross gaming revenue.

Considering Macau’s history with concessions, we believe the government will likely increase taxes again when the concession terms end in 2020-2022,” Macquarie says in a report, Business Daily publishes.

The house expects the government will increase both the direct tax rate, which is currently 35 %, and contributions to other social funds. “Even if the concessionaires object, the bargaining power rests with the government as it can easily tender the concessions to many eager competitors that have been vying for a spot in Macau for decades,” argues Macquarie.

The research unit says that although Macau’s casino gambling tax rates are high compared with other regional jurisdictions, New York City’s gaming taxes are two times higher. The house recalled in its report that the legislation specifically stipulates that the concessions must be renegotiated prior to or at the point of expiry.

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