The Financial Services Bureau of the city of Macau published data on the financial implications of the city’s gaming industry on governmental operations. According to reports, the Macau government collected MOP51.55 billion (US$6.42 billion) in gaming tax revenues from January through October 2023.
The tax revenue performance for the first ten months of 2023 was 215.7% higher than the same period in 2022, reflecting the impact of Covid-19-related travel restrictions that heavily affected the city’s gaming industry in 2022. This growth coincided with the January 8, 2023, reopening of gambling properties after an extended period of closures, leading to rapid recovery and growth in both gross gaming and tax revenues.
However, the recovery pace is still unstable, with monthly figures fluctuating depending on the seasons of customer arrivals from overseas or mainland China. In October, the Macau tax administration collected slightly above MOP5.78 billion (US$720 million) in gaming tax revenues, representing a 13.1% decline compared to the preceding month. These numbers are not directly comparable to figures reported by the city’s tax authorities for the same month due to the delayed recording of gross gaming revenues in the tax system.
Despite the fluctuations, Macau’s gross gaming revenue for the ten months to October 2023 reached MOP148.45 billion (US$18.48 billion), more than three times higher than the same period in 2022. This substantial growth has resulted in a remarkable tax revenue figure, which has already exceeded 101.4% of the MOP50.85 billion (US$6.33 billion) tax revenue figure planned for the entire year 2023.
This significant tax revenue result has been driven by the new gaming tax introduced within the scope of a new 10-year gaming concession system, which imposes a 40% tax on gross gaming revenues. This regulation has led to the collection of MOP51.55 billion (US$6.42 billion) in gaming tax revenues from January through October 2023.
Overall, the gaming industry in Macau has shown strong signs of recovery and growth in 2023, contributing significantly to the city’s tax revenues and bringing relief to stakeholders.