Macau’s government estimates that in 2023, casinos will only collect $10 million ($1.25 million) in taxes on fees they pay to Junket, down 76.7% from $43 million in MOPs expected to receive in fiscal 2022.
This information was released in a report published by the City Legislative Council. That was part of the information contained in the fiscal 2023 budget proposal approved by lawmakers at Thursday’s plenary session. 슬롯머신
The government attributed the expected decline in taxes on junket fees to the impact of the COVID-19 pandemic, as well as mainland China’s policy on “control of capital flows.” It also cited the “coordination” stage for the city’s VIP gaming segment.
Macau government estimates total casino gaming revenue in the city will be MOP 130 billion in 2023.
Junket, also known as a game promoter, has been granted permission by the Macau government to promote VIP games in casinos in the city. Their services include: arrangement of gambling credits for players, collection of losses incurred due to high roller play, and composition of player accommodation.
A 5% withholding tax is levied on fees paid by the game operator to the junket, but no withholding tax is levied on the total value. In Macau, junket operators are usually offered incentives to bring players to casinos by receiving a portion of their revenue or a fee for rolling chip rotation. The latter limit is 1.25 per cent.
According to the latest available data from Macau’s gaming regulator, as of January 2022, there were 46 licensed game facilitators in Macau, including businesses or individuals, down 45.9% over the past 12 months. The number marked the ninth consecutive year of decline in the number of licensed junkets in the Macau market.
These activities are still allowed for government-licensed promoters. But the sector saw a significant drop in business in November 2021 and January this year, coinciding with the high-profile detention of SunCity-branded Alvin Chowchuckwa and Takchun-branded Revo Chan Wonglin, two of the biggest junket bosses, respectively.
A criminal trial of Mr Chow and other defendants linked to the now-defunct Sun City Group in Macau was concluded last month. All sentencing related to the ruling is scheduled for January 18.
The Macau court’s trial of Mr Chan and eight other defendants is currently underway.