A new report reveals tax revenue from gambling activities in Macau decreased significantly last month.
Gaming Tax, Gross Gaming Revenue Continues to Go Down
The Financial Services Bureau has announced tax proceeds from gambling activities in April hit MOP$1.48 billion ($183 million). This result marked a significant decrease of nearly 54% when compared to the tax revenue collected during the same period last year.
The financial result for gambling tax revenue from last month follows a continuous negative trend. In fact, back in March this year, gambling tax revenue was MOP$3.0 billion ($371 million). While the result from April is undoubtedly bad, when compared to March, yet another significant decrease is observed, reaffirming tax revenue hit rock bottom.
Considering the results from March and April, it’s no surprise that the gambling tax revenue decreased significantly in the first four months of this year when compared to the same period in 2021. For the first four months last year, the gambling tax revenue hit MOP$12.38 billion ($1.53 billion). In contrast, this year, the revenue halted at MOP$10.21 billion ($1.26 billion). Comparing the first four months this year to the same period in 2021, a staggering decrease of more than 17% in gambling tax revenue is observed.
The decline in gambling tax comes as no surprise, considering the plummeting gaming revenues in the last few months. In March this year, gross gaming revenues (GGR) halted at MOP$3.67 billion ($459 million), down 55% when compared to the same period in 2021.
While that result was bad, gross gaming revenue last month fell even further by reaching MOP$2.68 billion ($335 million). This figure reaffirmed the ongoing negative trend, considering that gross gaming revenue last month fell 68% when compared to April 2021.
Without any doubt, both GGR and gambling tax revenues were impacted by the ongoing COVID-19 pandemic. Various COVID-related restrictions, testing, and a decline in traveling contributed to the negative result.