T
he Macau Government announced on Wednesday that it expects “a sharp drop” in gaming revenues due to the pandemic in the SAR. As stated at a press conference by the head of the Macau government, Ho Iat Seng, the budget will be reviewed.
With the government having forecast to collect about $16.2 billion in gambling taxes this year, Seng recalled that the initial estimate of this year’s casino tax revenue in the area “had been conservative” but that the detection of cases in August and September ended up frustrating the recovery of what is the driving force of the territory’s economy.
Macau’s gaming revenues fell 47.4% in August, compared to the previous month. As a result of the announced regulations earlier in September, casino stocks in Macau fluctuated, dropping a record $18 billion on September 15.
Prospects of tighter regulation, including the appointment of Chinese representatives to supervise Macau companies, have led to operators in the enclave seeing their stocks dropping $18 billion earlier this month as a result of the uncertainty prevailing.
Last month, and during September as well, Macau went into a “state of immediate prevention”, with massive testing of the population after authorities deemed the territory was “at risk of experiencing a community outbreak” of Covid-19. It was launched following confirmation that two security guards at a quarantine hotel tested positive.
The government tightened border and prevention restrictions in the city, which drove away visitors and affected the economy, heavily dependent on tourism and the associated gambling industry.
Before the new COVID-19 restrictions kicked in, the DICJ and the Secretariat for Economy and Finance hosted a consultation with Macau’s casino operators. During the session, representatives for the companies –Sands China, Wynn Macau, Galaxy Entertainment, MGM China, Melco Resorts and SJM Holdings– voiced their concerns and asked for clarity on the proposed gaming law revisions.
“We employ 15,000 people there. We’re good corporate citizens, and I have a very, very bullish view of the future of Macao and what we’re going to see going forward. I think what’s going in Macao is not punitive; it’s practical. They’re moving to a really highly regulated environment, just like we experience here in the United States,” Wynn’s CEO Matthew Maddox expressed.
Public consultation was launched by China officials in the region to discuss legal revisions, including how many casino licenses will be allowed, how long the terms will last, the abolition of sub-concessions, and the level of supervision by the government. Macau’s casino licenses are up for rebidding next June. The first of four sessions was recently postponed until further notice due to pandemic prevention.
Original article: https://www.yogonet.com/international//noticias/2021/09/29/59522-macau-government-foresees-a-sharp-drop-in-gaming-revenues-as-it-reviews-budget
