The CEO made a public announcement earlier this year. “The total number of game tables and game consoles to be granted for new game operations from early next year will be limited by the actual number of game tables and game consoles operating in Macau,” the CEO noted, according to the CEO noted
The game law imposes various taxes and charges on table and slot operators, with GGR-based charges alone accounting for 39% of operating revenue. Under Article 20 of the new Macau Games Act, the minimum annual gambling revenue per table was set at $7 million ($870,000) and the minimum annual gambling revenue per game console was set at $300,000 ($37,500).
Shrink Table and Slot Machine:
The move will reduce the number of tables by 13% from 6,925 allowed under the previous concession period , and reflect a 3% decrease in the slot machine’s final official tally of 12,387 as of the end of September.
In general, if 6,000 game tables were approved with minimum annual gambling revenue of $7 million per table and 12,000 game machines with minimum annual gambling revenue of $300,000 per machine, the total minimum gambling revenue for both game tables and machines would be $45.6 billion ($5.7 billion).
Gambling revenue remains the same:
The expected value could be based on the expected gross revenue level as Macau posted a GGR of $38.7 billion ($4.83 billion) at the end. The recent decision by Macau authorities to open gambling facilities and approve a 5% tax cut for operators to attract foreign visitors to the region during the holiday period could help reflect the 2022 earnings value in projected figures.
Assignments as contingencies:
The announced allocation of tables will affect five out of six concessions. SJM, Melco, Wynn, GEG, and Sands are losing a total of 1100 tables, while SJM alone losing 743 tables reflects the end of many satellite casinos in Macau. At the same time, MGM will take advantage of this situation to acquire 198 additional tables over the previous allocation, with a 36% increase in concessions.
Slot machine allocations among concessors are estimated to favor GEG, MGM and Win, with GEG expected to see a 31% increase in slot machines.