Gaming tax rebates on foreign bets rise in 2024 in Macau

This information was advanced in a recent written response from the Macau Government Tourism Office (MGTO) to legislator Lei Chan U, who had inquired about the city’s efforts to expand its international tourism feeder markets.

However, the reply—dated 21 February and only made available this week—did not disclose specific details, such as the total amount of tax rebates granted or whether all six gaming concessionaires applied for the relief.

Tax rebates and foreign-only betting zones

Following the enforcement of Macau’s new gaming law in 2022 and the commencement of new 10-year gaming concessions in 2023, gaming operators are required to pay a 40 percent levy on their gross gaming revenue. This includes a 35 percent gaming tax, up to 2 percent allocated to a public foundation for cultural, social, economic, educational, and charitable initiatives, and up to 3 percent for urban development, tourism promotion, and social security.

However, under the new tax framework, gaming operators are eligible to apply for a rebate of up to 5 percent on gross gaming revenue if they can demonstrate success in expanding international visitor markets.

In response to this incentive, all six concessionaires have established foreigner-only betting zones in their casinos. The authorities last disclosed in 2023 that a total of 12 such designated areas were set up across the city.

After consulting with the industry regulator, the Gaming Inspection and Coordination Bureau (DICJ), the MGTO stated in its reply to Lei’s inquiry, “As for the amount approved for the gaming concessionaires’ requests to reduce their allocated [tax] contributions due to their efforts in expanding overseas markets, it increased last year compared to 2023.”

The MGTO also cited data from the Statistics and Census Service, only noting: “The number of international visitors in 2024 rose by 66 percent year-on-year.”

Transparency concerns over tax breaks

Despite the tax incentive being in place for over two years, the Macau government has yet to publish official data on the total amount of rebates awarded, fuelling concerns over transparency.

Legislator Ron Lam U Tou has previously criticised the administration for its lack of disclosure, calling for full public access to the figures.

Similarly, Bill Hornbuckle, chief executive officer and president of MGM Resorts—the parent company of local gaming operator MGM China Holdings—stated last year that foreigner-only betting zones had not been effective. Instead, MGM had to rely on RFID chip tracking technology to monitor foreign players.

In its recent reply to the legislator’s inquiry, the MGTO reiterated the DICJ’s commitment to regulatory oversight, stating, “The DICJ will continue to carry out its duties in accordance with the law, including ensuring that gaming concessionaires establish appropriate monitoring measures to identify and record eligible foreign patrons. Moreover, the bureau will conduct strict reviews of applications for [tax] contribution reductions based on established procedures to safeguard the interests of the [Macau] SAR.”

Boosting global appeal

According to data from the Financial Services Bureau, the Macau government collected nearly MOP88.13 billion (US$11 billion) in fiscal revenue from gaming taxes in 2024, marking a 35 percent year-on-year increase. This surge coincided with a 23.9 percent rise in gross gaming revenue in Macau to MOP226.78 billion last year.

The government’s 2025 budget plan projects that fiscal revenue from gaming taxes will climb further to nearly MOP93.12 billion this year.

To enhance Macau’s appeal to overseas visitors, the MGTO highlighted various initiatives undertaken by gaming operators.

“The SAR government is encouraging gaming concessionaires to continue offering diverse and high-quality experiences, such as establishing designated gaming zones for foreign patrons, expanding overseas offices, rolling out membership privileges for international customers, providing private jet services, and collaborating with relevant SAR government departments on overseas promotional campaigns,” the reply stated.