On January 2nd, 2023, six Macau concessionaires reported that they might individually pay the Macau authorities a base sum of MOP750 {dollars} per sq. meter of gaming house for the primary 3 years of their newest 10-year concession contracts and MOP2.500 {dollars} per sq. meter for the remaining seven to allow them to “lease again the casinos as their respective built-in resorts.”
Utilization payment:
In the course of the second and third base years, the required cost of MOP750 {dollars} can be raised in accordance with the Macau common worth index and all through the fifth to tenth base years the required cost of MOP1.500 {dollars} can be listed the identical.
“The utilization payment comes after the on line casino areas of the concessionaires’ properties had been reverted again to the Macau SAR Authorities upon expiration of their earlier 20-year concessions on 31 December 2022,” in keeping with SJM Resorts officers.
Newest 10-year concessions:
The most recent 10-year concession contracts started on January 1st 2023 and 5 of the six concessionaries besides Galaxy Leisure Group, publicly introduced in a Hong Kong Inventory Alternate press launch that that they had agreed with the federal government “to lease again the on line casino areas throughout the built-in resorts they function for the subsequent 10 years.”
Moreover, Galaxy Leisure Group has instantly submitted affirmation to IAG that its cost charges are the identical as these of different 5 concessionaires.
Charges can be paid yearly in March of yearly.
Totally different utilization charges for every concessionaire:
At a press convention on Friday, SJM Resorts officers stated: “Our annual utilization payment, which accounts for using on line casino areas at On line casino Grand Lisboa, On line casino Grand Lisboa Palace, On line casino Lisboa and On line casino Oceanus at Jai-Alai, will quantity to MOP$69 million (US$8.6 million) in 12 months 1 (2023), rising to MOP$229.3 million (US$28.7 million) in 12 months 4 (2026). ” Nevertheless, the second, third and fifth to tenth 12 months can be listed as already defined above.
Melco’s chairman and CEO, Lawrence Ho, added: “We had reverted and agreed to lease again on line casino areas totalling 31,227.3 sq. meters at Metropolis of Goals Macau, 28,784.3 sq. meters at Studio Metropolis and 17,128.8 sq. meters at Altira, implying an annual payment of MOP$57.9 million (US$7.2 million) for the primary 12 months of its new concession, rising to MOP$192.9 million (US$24.1 million) from the fourth 12 months.
“We’re honored and grateful to be awarded a 10-year gaming concession by the Macau SAR authorities.
“The corporate is grateful for the Central authorities’s management and steering in supporting Macau’s continued integration with mainland China. We pledge our full assist to the sustainable and diversified improvement of the tourism and leisure business in Macau, and can proceed to work with the federal government, the neighborhood and stakeholders to learn and contribute to town’s improvement as a key world tourism vacation spot.”
Nevertheless, the second, third and fifth to tenth 12 months can even be listed as already defined above.
New income for Macau authorities:
This person payment can be one other vital income stream for the federal government and can be a part of different funds that concessionaries are legally required to pay to the federal government underneath the phrases of their new concession contracts.
Concessionaries are required to pay a particular gaming tax of 35% of GGR and an extra 5% of GGR in contributions for various types of Macau CSR.
For instance, if Macau’s GGR totaled MOP$130 billion in 2023, as the federal government predicts, the full GGR taxes and costs to be payed by Macau’s six concessionaries this 12 months could be MOP$52 million, which is roughly US$6.5 billion.
As well as, concessionaries are required to pay an annual mounted premium of MOP$30 million and year-to-year variable premiums of MOP$300.000 per VIP desk, MOP$150.000 per mass desk and MOP$1,000 per slot machine.
Guessing that solely 10% is left for VIP play, the full yearly premium to be paid by the six Macau concessionaries to the federal government could be MOP$1.182 billion, which is roughly US$148 million.
On line casino utilization charges of Macau’s concessionaries:
12 months 1 (2023)
MOP$750 per sq. meter
12 months 2 (2024)
MOP$750 per sq. meter*
12 months 3 (2025)
MOP$750 per sq. meter*
12 months 4 (2026)
MOP$2,500 per sq. meter
Years 5 to 10 (2027 to 2032)
MOP$2,500 per sq. meter*
* adjusted for common worth index
