Macau Gambling Industry is considered as the backbone of the prosperous Macau Economy. The well-groomed industry with the well-executed plan and systematic upgrades has contributed largely to the boosting economy of Macau. The situation hasn’t changed this year either as the region has already contributed around $9.49b till August in terms of Tax Collection. This is a 1.5% increase in the year to year comparison for the same period. The Tax Collection figure has been received from Macau Financial Service Bureau.
Interestingly, the reports came after the fallen GGR report of Macau. The GGR or Gross Gambling Revenue of Macau has fallen in the last few months. The data is 1.9% lesser than the previous year for the last eight months. However, the tax reports show an entirely different story. The experts said that the tax is reported after it has been collected; hence there is a shift in time. So, the GGR and the Tax Collected for 2019 cannot really be compared.
The Gambling Industry holds the key to the Macau economy. The Financial Services Bureau has already reported that 89.6% of the total tax has been paid. The Bureau also reported that 77.9% of the projected revenue for the year of 2019 has already been collected. Hence, it is understood that the industry is still a pushing factor for economic growth. The expected amount to be collected from Gambling Operations from Macau is about $12.17b.
The fiscal surplus for gambling operations should be around $2.23b as per the Government’s data. However, with the smoother operations, it looks like the revised figure for the fiscal would be around $4.72b.
The slowdown of the Gambling Industry, especially in terms of GGR, has recently expressed concerns for Macau. However, the latest report has some different story to tell. The trade war between USA and China; the Hong Kong Protests are few of the geopolitical and economic hurdles that came in the way of Macau Gambling. However, with Golden Week coming, the slowing down of the trade issues between US and Chine and new talks with the Hong Kong Protesters, could, in turn, change the future of Macau gambling.
Macau Government has however understood the gravity of the issue and has already focused on the diversification of the economic dependence. Tourism is now going to be another factor to be reckoned with in Macau, which can, in turn, boost the gambling also. These could lead to a revolution for Macau economic growth.