Macau. Casinos get a Surprise!
Macau. The casinos there have set minimum revenue limits. It’s no secret that the COVID-19 pandemic and subsequent lockdowns had a devastating effect on the global economy. Numerous projects were places on hold. Revenue streams were at a standstill. Life as we knew it basically shut down. While online casinos were able to continue operating as usual, land-based casinos were forced to close their doors. And in some cases, they were unable to open them again.
So what did Macau do?
As a result, in an effort to minimize the impact on its casino industry. The Macau government has now set it’s casinos an easy minimum revenue level. Which will hopefully help ease the financial strain the pandemic has caused.
Set out by the Macau government. The new limits require casinos to generate a minimum revenue of MOP$7 million per gaming table and MOP$300,000 per slot machine in 2023. To date casinos in Macau are legally permitted to operate up to 6,000 gaming tables and 12,000 slot machines in 2023. Bearing the new limits in mind, this will then move the total revenue threshold to MOP$45.6 billion. A similar total to that of 2022. Some people believe that this new casino hub has even overtaken Las Vegas.
Will the new regulations be a help?
Since Macau already has an incredibly huge tax of 40% (some of the world’s highest taxed areas), some feared the new gambling regulations would cause casinos to have to owe the government money. Gambling has plunged a stunning 38% this year. That’s over 80% since covid-19 dawned on us. Current casino’s in Macau will begin to bid on new permits. Will the new regulations help to restore economic balance? It’s thought that there are still challenges for casinos to face despite the government’s intervention But only time will tell.