Macau’s Financial Services Bureau released the results for the first quarter of 2024 on Monday, April 22, 2024, and the city earned 116.8% more on taxes than in the same period last year.
Increased revenue:
The city earned around MOP21,92 billion, or US$2,74 billion in fiscal revenues from taxes imposed on gaming operations during the first three months of the year. To compare, in the first three months of 2023, Macau collected MOP10,11 billion in taxes. The main reason is the reopening the city’s economy after measures against COVID-19 were completely lifted. Various travel restrictions lasted for three years in this regulated market.
The revenue collected from gaming is 84.2% of the city’s total revenue in this period, ending on March 31. Only in March did gaming taxes bring around MOP7,13 billion to the state. However, the revenue in March decreased by 4.4% compared to the same month in 2023.
The aggregate casino gross gaming revenue (GGR) in Macau was MOP57,33 billion in the first three months of 2024, an increase of 65.5%, as Macau’s gaming regulator published.
On January 1, 2023, Macau set the effective tax on casino GGR at 40% as a part of the city’s 10-year gaming concession plan.
With that period in mind, comparing year-on-year results regarding GGR is not easy. One of the main reasons for this is a delay between the recording of GGR and the period when the taxes are registered by the government, so the results can greatly vary depending on the time.
Huge steps toward total recovery:
The Macau government published a budget plan for 2024; according to the plan and GGRAsia reports, it expects to generate around MOP83,61 billion by the end of 2024.
In 2023, the government earned MOP65,26 billion in revenue generated from gaming taxes. Compared to the planned budget, an increase of 28.3% is recorded, representing a huge success for the city, considering all travel restrictions and measures. One of the biggest steps towards lifting the measures and recovering this gambling haven was allowing tourists from mainland China and Hong Kong to visit Macau and gamble in its casinos.
The earnings already surpassed the budget for the first quarter of 2024, and the fiscal surplus is almost MOP7,78 billion. In Q1 of 2023, the surplus was MOP2,30 billion.