Yesterday, the Financial Services Bureau of Macau announced that city’s government collected the amount of MOP8.49 billion or US$1.06 billion in direct gaming taxes in January, posting a 29.7% decrease as compared to what was generated a year ago.
Generally speaking, the city’s revenue for January dropped by 27.5%. Last month, the administrative region collected revenue of MOP10.50 billion, almost MOP4 billion less than the figures posted this time last year.
Direct gaming taxes accounted for 80.8% of Macau’s overall revenue for the first month of 2015.
The Financial Services Bureau also reported that the government surplus decreased in January, due to the significant drop in the total revenue. January’s surplus amounted to MOP8.31 billion. By comparison, a surplus of MOP12.61 billion was generated this time last year.
In addition, the full-year surplus marked a 6.2% drop as compared to the one posted for 2013. Last year’s entire government revenue totaled MOP156.07 billion, up by 0.4% year-on-year.
Macau’s Financial Services Bureau also reported that the growth of the direct gaming taxes slowed to 1.7% in 2014, as compared to 18.5% back in 2013. Direct gaming taxes constituted 83.1% of Macau’s total revenue in 2014.
The administrative region’s government attributed the not particularly impressive financial performance to the considerable drop in the gaming revenue. As previously reported, Macau’s turnover from gaming activities fell for seventh consecutive month in January. The prognoses for February are not too bright as well.
A tax of 35% is levied on gross gaming revenue by the government of Macau. What is more, a 4% tax is collected out of the gross in indirect taxes. The money is distributed to different promotional and social causes. Last but not least, authorities collect a special levy on each slot machine, live dealer gaming table, and VIP room, located within the premises of the Macau-based casinos.
With all that said, it seems that the administrative region is about to have its eighth month of substantial decrease in its gaming revenue. Gaming experts tend to attribute this to various demand as well as supply factors. Among these are the tighter liquidity for junket operators that issue credits, the reduced number of visas for high roller players, and the stringent monitoring measures that were taken not long ago in Macau’s casinos.
And, of course, Chinese President Xi Jinping’s massive anti-corruption campaign in Mainland China is seen by experts, gambling operators, and players as the main reason for the current economic situation of the administrative region, known to be one of the world’s most popular gaming hubs.
