Tax reduction possibility for Macau casino firms
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JPMorgan Chase and Company has forecast that the over 40 casinos in Macau could boost their earnings by up to 15% a year if the local government decides to decrease the rate of its gross gaming revenues tax.
Macau is home to some of the world's largest and most famous gambling venues. The casinos are required to pay a 35% gross gaming revenues tax and smaller duties for every live dealer table, gaming machine and VIP room they operate.
Macau's casino operators could see a 12% to 15% boost in their earnings for 2023 and 2024 if they reduce their tax rate. The local industry saw its most recent first-quarter contribution drop by 4.8% year-on-year to about $1.08 billion due to the lingering impacts of the coronavirus pandemic.
The six licensed casino operators in Macau are set to see their current concessions expire on June 26. They will apply for extension until the end of the year. JPMorgan Chase and Company thinks the market's concern about licence renewal is overdone.
