Macau GGR targets hurt ops with low-yield assets: broker
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Macau government's proposed minimum annual target of casino gross gaming revenue (GGR) per table and per gaming machine could hurt operators with low-yielding gaming assets. If local operators fail to meet such GGR targets, they would be required to pay the government the shortfall in the minimum amount of gaming tax. The prevailing gaming rate is 35 percent. The Macau Government imposes the other effective 4 percent relating to other social contributions from the casino operators. CICC Hong Kong estimates the target yield of the gaming tables could stand at US$6,584 win per day, and that of slot machines at $207 win a unit per Day in 2022.
SJM Holdings Ltd has been the least efficient with its Macau gaming tables and slot machines since the pandemic. Galaxy Entertainment Group Ltd and Wynn Macao Ltd operated most efficiently in terms of their gaming table and slots. Melco Resorts and Entertainment Ltd. and MGM China operate most efficient among the six operators in 2020 to 2021. Wynnn Macaue and MGM Chinese will remain the most effective in 2023. The amendment bill relating to the city’s existing gaming law says that if the gaming inventory held by a concessionaire does not meet the annual GGR minimum decided by the government, then the incumbent secretary for economy and finance can take back some tables or machines.
