Macau raises US$1.25 billion in tax revenue from gambling in the first quarter
Macau raises US$1.25 billion in tax revenue from gambling in the first quarter

The Financial Services Directorate reported that Macau collected MOP 10.11 billion (US$1.25 billion) in taxes on casino operations in the first three months of the year. The value rose 15.8% when compared to MOP 8.73 billion (US$ 1.08 billion) in the same period last year.

The total represents 19.88% of Macau’s annual forecast of MOP50.85 billion (US$6.3 billion). Cumulative GGR for the first three months of the year was MOP34.64 billion (US$4.29 billion), a year-on-year increase of 95% but a decrease of 54.5% when compared to the same period in 2019.

The situation is improving for the second quarter. In April, Macau recorded its highest monthly gross gaming revenue in three years, reaching MOP14.72 billion (US$1.83 billion). Macau’s gaming operators generated gross revenues of MOP49.36 billion (US$6.1 billion) from January to April.

This amount represents nearly 38% of the government’s target of MOP130 billion (US$16.08 billion) for 2023.

Macau government forecasts 48% recovery this year

Some official data related to GDP (Gross Domestic Product) of Macau were revealed, which in 2022 suffered a reduction of 26.8%. This sudden decrease was due to the sharp drop in gaming revenues in the Chinese region, which experienced a reduction of 51.4%.

However, according to Fitch, a company specialized in financial analysis of markets, in 2023 there is a great possibility that Macau will be able to recover the bonanza of yesteryear.

According to analysts, they should “recover to about half of the 2019 level”. That year, the casinos present in the special administrative region of China managed to raise 33.7 billion euros.

From what was revealed, in the first two months of this year, Macau casinos had a revenue 55.3% higher than that recorded in the first two months of 2022, and this is the best mark observed in three years.

According to Fitch, with the process of lifting restrictions to control the pandemic in the Chinese region, which began in mid-December last year, there has been a gradual return to tourist excursions, thus boosting the local economy.