Macau Chief Executive Officer Ho Iat-Seng has set a limit of 6,000 gaming tables and 12,000 machines per operator as part of major reforms to be implemented in the special administrative region.
The news comes after a major overhaul of Macau’s gaming laws was passed in June, saying there are maximum numbers of tables and machines and minimum GGR requirements, with the exact numbers to be defined by the chief executive at a later date. It follows that.
The dispatch outlined limiting the number of tables and machines to 6,000 and 12,000 respectively for each of the six concessionaires. The order will come into force on his January 1, 2023, when the new legal system comes into operation.
Meanwhile, the minimum annual GGR for the table is MOP7 million (£739,385/$868,317/€866,125) and MOP300,000 for the machine. This means that operators with lower revenues may find that the number of machines they are allowed to operate is below their overall limit.
The reform is the most significant change to Macau’s gaming law since liberalization of the sector in 2002. The act increased the number of concessionaires to six, but eliminated subconcessionaires and kept the number of operators substantially the same. In addition to the new table rule, a new rule will be applied that limits the number of junkets each concessionaire can handle to one.
The new law also includes a subtle tax increase by raising the general tax rate on the GGR to 40%, but effectively 10% as the rules allow chief executive discretion in providing the tax relief. There is some ambiguity about what the tax rate will be. Up to 5%. The law states that this will lead to the casino’s success in attracting foreign customs.
Game innovations are widely welcomed by current operators. Melco Resorts & Entertainment said the new law will “refine the relevant legal framework and promote the sustainable and sound development of Macau’s gaming industry for the benefit of the Macau community.”
The public tender process for the new concession has already started and will continue until September 14th. The new concession will take effect when his current license expires on his December 31st of this year. The bidding process follows the extension of his previous six-month license due to the ongoing Covid-19 pandemic.
