Macau has revised its expectations for the revenue it anticipates collecting from the direct tax on gross gaming revenue (GGR) for the year 2025. Specifically, the government has made a downward adjustment of 5.0 percent to its initial forecasts. This change stems from adjustments by local government officials following a comprehensive review of current economic circumstances and industry trends. Macau had previously forecasted an income of MOP84.0 billion from its 35-percent direct tax on GGR, often referred to locally as the 'special gaming tax.' However, under the updated projections, the anticipated revenue is now pegged at MOP79.8 billion (US$9.87 billion).
Legislative Review and Fiscal Amendments
The revised income forecast is part of a broader fiscal strategy outlined in a government-proposed 2025 fiscal budget amendment bill, which is currently under scrutiny by a subcommittee within Macau’s Legislative Assembly. The legislative process involved in approving these amendments signifies the government's response to changing commercial landscapes. It includes a formal opinion document that elaborates on these adjustments and was concluded with a final approval on July 9. Notably, an additional reduction was made to the 2025 forecast for Macau's overall GGR, which was adjusted to MOP228 billion from an earlier projection of MOP240 billion—a nearly 5-percent decrease.
Details of Tax Revenue Adjustments
The opinion document accompanying the fiscal amendments further highlights adjustments in forecasts related to other forms of gambling-associated revenues. This includes a 3-percent levy on GGR which is intended for 'urban development, tourism promotion and social security.' Previously, this source of income was estimated to be higher, but following the revision, it is set at MOP6.84 billion, marking another 5-percent reduction from prior estimates. Additionally, the financial expectations from taxes on commissions paid by casinos to licensed gaming promoters, commonly referred to as 'junkets,' remain unchanged at MOP100 million. The revisions are underpinned by observations from Ho In Mui, deputy director of the Financial Services Bureau, who cited 'global economic conditions and changes in consumption patterns of tourists to Macau' as influencing factors for these fiscal strategies.
Source: Macau cuts by 5pct its 2025 income forecast in relation to city's direct gaming tax, GGRAsia, July 9, 2025.
Posted by Wizard
Jul 10 2025
Jul 10 2025
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