Macau – It has been reported by officials in Macau that the government has collected just two billion dollars in tax revenue in 2020, a figure that is down more than twelve percent compared with the same period in the previous year.
The figure, which was released today from official data, shows that gross gaming revenue was also down for the complete two months of January and February.
According to reports, February’s gross gaming revenue declined almost ninety percent compared with the same month in 2019, though this was mostly down to the government’s preventative closure measures to stop the spread of coronavirus.
In Macau, the government enforce a tax and levy on gross gaming revenue of almost forty percent and at present it is unclear how big an impact the February gaming establishment closure will have on both figures for the first and second quarter of 2020 and the entire year’s takings.
Despite the latest figures being devastatingly low, the data showed just how reliant the special administrative region of China is on the gaming industry, with over ninety percent of all government revenue taken coming from the gaming industry.
Macau has recently made news headlines for a number of reasons, including the number of coronavirus victims and the impact of travel bans being enforced between China and Macau, along with corporations pleading with government officials to issue tax breaks to aid with recovery from the disease.
On 4th February 2020, all gaming establishments in Macau were ordered to shut for fifteen days. They reopened on 20th February 2020.
Reportedly, there have been only ten confirmed cases of the infection in Macau so far, with all those who were infected recovering to full health.
This figure is relatively low given the circumstances and location of the autonomous region on the south coast of China.
During the closure, a measure enforced to prevent the spread of the virus, a number of gaming venues paused business operations as they closed their doors to locals and visitors. Among the casinos that closed were; The Venetian Macau, Sands Macau and the City of Dreams. City of Dreams is a resort and casino in Cotai, Macau, which is owned and managed by Melco Crown Entertainment. The venue has a gaming floor of around 420k square foot with over 400 gaming tables and more than one thousand gaming machines, including slots and video poker. All of which were inaccessible during the fifteen day closure, which has had serious implications for this year’s financials so far.