Macau’s Chief Executive, Ho Iat Seng, said that in the second half of this year the government will lower its previous 2022 GGR forecast of MOP$130 billion.
In Ho’s 2022 policy address last November, the Macau government estimated 2022 gross gaming revenue at MOP$130 billion (US$16.25 billion). However, GGR from January to May this year has totaled only MOP$23.79 billion (US$2.97 billion), down 44.0% on 2021 and a monthly run rate of just MOP$4.76 billion (US$595 million). Extrapolated for the entire year this would imply a 2022 GGR of just MOP$57.12 billion (US$7.14 billion) – less than half of the government’s original estimate.
It was just such a scenario that IAG raised in its Macau gaming law series part 8, published on 25 March this year, arguing that such an overestimate might, under the new gaming law, create the unintended consequence of an effective tax rate hike for Macau’s gaming concessionaires. The government went some way towards quelling such fears when it announced on 16 May this year that the proposed new gaming law would be amended to allow minimum revenue levels per table and slot machine to be changed by the government “at any specified time” in line with the economic environment of Macau and especially in cases of “force majeure”.
During a meeting with journalists this morning (Monday 6 June), Ho pointed out that the government will change its 2022 GGR forecast and attributed the adjustment to the recurrence of the epidemic in China in the first half of the year. Ho said the Macau government will propose budget adjustments to the Legislative Assembly in the second half of the year.
This morning’s meeting saw some media raising the issue of Macau’s satellite casinos with Ho, who replied, “If there are not too many satellite casinos closing down, there is not a big problem.”
The Chief Executive said the government does not know how many satellite casinos will close down, but he knows there will be satellite casinos that will continue to operate and said there is no need for satellite casino staff to worry about the current situation.
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