Macau’s gaming tax rebates on foreign bets a “failure,” says industry insider

U Io Hung, president of the Macau Professional Association of Gaming Promoters, has criticized Macau’s tax rebate policy on foreign bets, calling it a “failure.” Designed to attract more international gamblers and boost the local gaming economy, the initiative has failed to produce meaningful results, he claims.

Speaking to AGB, U assessed the policy’s effectiveness following confirmation from the Macao Government Tourism Office (MGTO) that total approved tax breaks on gross gaming revenue from international players increased in 2024 compared to the previous year. However, no specific figures were disclosed.

Despite this reported increase, U dismissed the impact as negligible, stating that the amount of gaming tax breaks granted remained “extremely low.”

“To get the tax break, foreign players need to gamble in small, isolated spaces. No one wants that,” U explained.

Under Macau’s gaming law, updated in 2022, operators must pay a 40 percent levy on their gross gaming revenue, including a 35 percent gaming tax and additional contributions of up to 5 percent for public and social initiatives. To encourage international market expansion, the government allows operators to apply for a rebate of up to 5 percent on revenue generated from foreign players.

All six gaming concessionaires have established exclusive betting zones for international visitors. By April 2023, authorities confirmed the existence of 12 such designated areas across Macau.

Similarly, Bill Hornbuckle, chief executive officer and president of MGM Resorts, the parent company of local gaming operator MGM China Holdings, remarked last year that betting zones restricted to foreigners had proven ineffective.

Official data show that Macau recorded 34.93 million visitor arrivals in 2024, a 23.8 percent increase year-on-year. Among them, 2.42 million were international visitors, marking a 66 percent surge. However, despite this rise, international visitors still accounted for only 6.9 percent of total arrivals.

According to the Financial Services Bureau, Macau collected MOP88.13 billion ($11 billion) in gaming tax revenue in 2024, a 35 percent year-on-year increase. This growth aligned with a 23.9 percent rise in gross gaming revenue to MOP226.78 billion ($28.7 billion). The government’s 2025 budget projects gaming tax revenue to climb further to MOP93.12 billion ($11.8 billion).