Macau’s gaming industry has continued its rapid recovery in 2024, with the region’s tax revenue from gaming reaching nearly MOP66.40 billion (US$8.31 billion) within the first nine months of the year, surpassing the total amount collected for the entirety of 2023. This impressive figure marks a 45.1% increase compared to the same period in 2023, according to data released by the Financial Services Bureau.

In September alone, the Macau government collected MOP7.62 billion in gaming taxes, which represents a 6.4% rise from the previous month. Gaming taxes continue to be the primary contributor to Macau’s overall fiscal health, accounting for a significant 83.1% of the government’s total revenue during the first nine months of the year. In total, Macau’s revenue for this period stood at MOP79.92 billion (US$9.97 billion), according to Asia Gaming Brief.

2024 Gaming Revenue on Track to Meet Government Targets

Under the Macau government’s 2024 budget plan, the gaming tax revenue target is set at MOP83.61 billion (US$10.43 billion). With the current figures representing 79.4% of this anticipated target, the government appears well on its way to meeting or even surpassing its projections before the year ends. The surge in revenue demonstrates the resilience of Macau’s gaming sector as it rebounds from the challenges of previous years.

The impressive growth in gaming tax revenue is largely attributed to the increased activity within the city’s casinos, spurred by the gradual lifting of COVID-19 restrictions and a return of visitors. As the global travel landscape normalizes, Macau’s gaming industry has benefitted from a steady influx of tourists, particularly from mainland China, which continues to be a major source of gaming visitors.

New Gaming Concession System Boosts Revenue Collection

Macau’s 10-year gaming concession system, which was implemented on January 1, 2023, has contributed significantly to this surge in tax revenue. The system, designed to streamline and regulate the city’s casino operations, enforces an effective tax rate of 40% on casino gross gaming revenue (GGR). This high tax rate is one of the key drivers behind Macau’s strong fiscal performance, ensuring that the government captures a substantial portion of the gaming industry’s earnings.

While the gaming tax figures for any given period and the recorded GGR from casino operations are not directly comparable due to the delay between the point where GGR is generated and when the tax is paid, the consistent upward trend in both metrics indicates sustained growth in the industry. The 40% tax on GGR is expected to remain a crucial aspect of Macau’s economic strategy, reinforcing its reliance on the gaming sector.

However, despite the encouraging signs of recovery, the government remains cautious as it approaches the final quarter of the year. Nevertheless, given the robust results so far, Macau’s gaming sector is positioned to close 2024 with a strong financial performance, meeting the expectations laid out in the budget.