Tax commissions of Macau junkets marks sharp 92.5% drop

Taxes on commissions that casinos paid to junkets brought in barely MOP3.5 million (US$434,570) for the Macau government in 2022—a 92.5% drop from MOP46.5 million in 2021. According to budget predictions, the government had anticipated receiving MOP43.0 million in equivalent taxes in 2022, therefore this significant decline was unexpected.

The government’s budget implementation report for 2022, which was just sent to Macau’s Legislative Assembly, included the official statistics. The issues facing Macau’s gaming industry in 2022 are closely linked to the decline in tax revenue. Travel restrictions and the COVID-19 pandemic had a big impact on the region’s casino gross gaming revenue (GGR), which fell by 51.4% annually to MOP42.20 billion. In instance, VIP revenue decreased by 64.4% on an annual basis, or over MOP10.15 billion.

The government had expected a decline in junket commission taxes, attributing it to the pandemic’s effects, the money flow restrictions on mainland China, and a transitional time for Macau’s VIP gaming sector. By offering services including setting up gambling credit, collecting on losses, and setting up player accommodations, junkets—also referred to as gaming promoters—play a crucial role in marketing VIP gaming in Macau’s casinos.

As of January 2022, there were 36 licensed gaming promoters in Macau, a considerable decrease from the year before and the eleventh consecutive year that the number of licensed junkets in the Macau market has decreased.

The Macau government anticipates taxing junket commissions paid by casinos MOP10 million in 2023. In its 2023 budget, the government projected that the city’s total casino gross receipts would be MOP130 billion. In the first nine months of 2022, Macau’s casino GGR reached MOP128.95 billion, a massive increase of 305.3% over the same period in 2022.

Original story by: GGRAsia