Macau’s Gaming Tax Revenue Jumps 58% YoY Between January-July 2024

August 19, 2024 Macau Industry Updates

Macau’s gaming industry has shown strong signs of recovery, with government income from gaming taxes surging by nearly 58 percent in the first seven months of 2024 compared to the same period last year. This significant increase brought in almost MOP51.6 billion ($6.4 billion), highlighting the region’s ongoing economic resurgence following the COVID-19 pandemic.

The boost in gaming tax revenue has been a key factor in driving Macau’s overall government revenue up by 49.7 percent, reaching MOP61.1 billion ($7.5 billion). This marks the highest revenue figure since 2020, the year the pandemic first disrupted global economies. These figures are based on the latest budget execution rate information released by the city’s Financial Services Bureau.

Gross gaming revenue (GGR) in Macau also saw a substantial rise, climbing 36.7 percent year-on-year to approximately MOP132.2 billion ($16.4 billion) between January and July 2024. This growth is a reflection of the renewed vitality in the region’s gaming sector, which has long been a cornerstone of Macau’s economy.

Under Macau’s current 10-year gaming concession system, which began in January 2023, the effective tax rate on casino GGR is set at 40 percent. The substantial tax revenues collected so far in 2024 have already accounted for 60 percent of the total projected revenue of MOP102 billion ($12.7 billion) for the year.

The increase in revenue has been accompanied by a rise in public spending, which grew by 9.6 percent to MOP52.2 billion ($6.5 billion). However, infrastructure investment only saw a modest increase of 1.1 percent, totaling MOP9.69 billion ($1.2 billion). Meanwhile, current expenditure rose by 10.2 percent to MOP41.9 billion ($5.2 billion), driven largely by an 11.7 percent increase in social support and subsidies, as well as a 4.4 percent rise in civil servant expenses.

Macau’s 2024 budget anticipates a return to surplus in public accounts, projecting no need to dip into the region’s financial reserve for the first time in three years, following the economic downturn caused by the pandemic. Between January and July 2024, the city recorded a surplus of MOP9.27 billion ($1.2 billion), more than double the surplus during the same period in 2023.