2022 ended with Macau casinos recording a 51.4% drop in cumulative gross revenue, from 4.8 billion euros versus 19 billion euros in 2021.
Concessionaires in Macau have accumulated unprecedented losses since 2020 and the government has been forced to use the extraordinary reserve to respond to the crisis, not least because about 80% of government revenues come from gambling taxes.
The six game operators MGM, Galaxy, Venetian, Melco, Wynn and SJM, renewed on December 16 the concession contracts for the next ten years, which comes into effect from now on.
The authorities demanded in the bidding investments in non-game elements and foreign visitors, in the expectation of diversifying the economy of the territory.
"In this bid, the six contracting companies committed themselves to make an investment in the non-game elements of more than 11.7 billion euros and, in terms of gambling, about 1.17 billion euros," said Andre Cheong Weng Chon, the chairman of the bidding committee for the allocation of concessions for the exploitation of games of chance, at a press conference.
"After 20 years of development, the gaming sector, both in its basic facilities and in its equipment, already has a certain dimension, so the government does not expect an unlimited expansion of the activity. It has to be a stable development and, at the same time, it is necessary to give more space for development of the non-gaming elements," he added.
In addition to representing about 80% of the government's revenues and 55.5% of Macao's gross domestic product (GDP), the gambling industry provides work to more than 80,000 people, or 17.23% of the employed population.
Macau, which like China followed the 'zero covid' policy, announced this month the cancellation of most prevention and containment measures, after nearly three years of strict restrictions, at this time a sharp increase in cases of the disease.
Source: SAPO
