International edition
June 12, 2021

Casinos currently pay a 60% revenue share to junkets

South Korea rejects Jeju casino tax rate proposal

South Korea rejects Jeju casino tax rate proposal
In South Korea, the national government has rejected a local proposal that would have seen the tax rate on gross gaming revenues for the eight casinos in the island province of Jeju double to 20%.
Korea | 05/25/2016

In South Korea, the national government has rejected a local proposal that would have seen the tax rate on gross gaming revenues for the eight casinos in the island province of Jeju double to 20%.

A

ccording to a report on Asia Gaming Brief, Union Gaming analysts noted that Seoul possibly rejected the proposition so as not to scare away the billions of dollars that is soon likely to be invested in the nation’s least populated province.

In addition to increasing the tax rate from its current figure of 10%, the failed proposal also included the implementation of three-year license renewal audits and restrictions on the transferability of casino licenses.

Union Gaming declared that the news is especially positive for casino operators such as Genting Group, which plans to open its new $1.8 billion Resorts World Jeju late next year, although the local government is moving forward with a controversial proposal that would see licensees lose the ability to pay tax on gross gaming revenues after deducting junket commissions. Jeju casinos currently pay a 60% revenue share to junkets, which is 15% higher than that shelled out in Macau, but benefit from a consequent tax rate of only 4%.

“By eliminating the ability to deduct junket commissions, the effective VIP gross gaming revenues tax will go up to 10%, representing an increase of 150%,” said Grant Govertsen from Union Gaming.

 

What is your opinion about this article?
  • I like it
    %
    0 votos
  • I don't like it
    %
    0 votos
  • I have not thought about it
    %
    0 votos
Leave your comment
Newsletter Subscription
Subscribe to receive the latest news and updates
Enter a valid email
Complete the captcha
Thank you for registering to our newsletter.
Follow us on Facebook