Macau’s government has announced the new threshold for minimum revenue casino operators in the region must reach in 2023. The threshold is set to MOP$45.6 billion ($564 million) and it is similar to the 2022 levels. The chosen amount is considered fairly easy to reach and selected as a means of offering relief in the context of the heavy restrictions imposed during the pandemic and the changes in regulations.
Casinos to Generate at Least MOP$7m (US$870,000) Per Table
The new requirements mention a minimum revenue threshold of MOP$7m (US$870,000) per gaming table. The threshold for a single gaming machine has been set to MOP$300,000 ($37,112).
At the same time, it has been decided that casino operators in the territory will be able to operate up to 6,000 tables at a time, and as many as 12,000 machines in 2023. This marks the first time the government has set a formal limitation on the exact number of tables and the minimum income connected to them for operators. The main goal is to strengthen control over operators in the territory.
At the moment, casino companies are subject to a 40% tax, which is one of the highest tax rates on the planet. Concerns rose regarding the fact that provided the minimum level of the threshold would have been set too high, operators would have been forced to make up the shortfall to the officials, as a result of fresh gambling legislation passed in June.
Macau’s Gross Gaming Revenue Dropped By 38%
At the same time, Macau’s gross gaming revenue dropped by 38% in 2022, reaching MOP$54 billion ($6,68 billion). The figure signaled an 80% drop compared to the levels recorded prior to the beginning of the pandemic.
Macau currently has six licensed operators, with Wynn Macau, Sands China, MG China, and Galaxy Entertainment on the list. All six licenses will, however, reach their expiration date by the end of 2022. All operators expressed their interest in obtaining new permits to operate in the territory. September 14 is the last day they can submit their bids. The new licenses will go into effect starting at the start of 2023. At the end of July, Macau announced it formed a special committee that would assess all license bidders.