Macau may choose to hike gaming taxes, already the highest in Asia, once the government renews the licences for concessionaires, CLSA analyst Aaron Fischer was cited as saying.
He said he expects all six current operators to see their licences renewed and the possibility of one extra licence perhaps being granted to a local company.
He sees the gaming tax rate rising from 39 per cent to 43 per cent.
CLSA is predicting another tough year for Macau in 2015, with gross gambling revenue likely to drop nine per cent, after a 2.6 per cent decline in 2014.
Fischer, like most other analysts, sees the first half of 2015 being particularly weak, before GGR begins to improve in the second half. He predicts a recovery in 2016 as new properties come on line.
“2016 will be a fantastic year. We think revenues will increase in 2016 by 22 per cent,” he was cited as saying.
Galaxy Entertainment will be the first out of the gate with its Galaxy Macau phase two expansion due to open mid-2015. That will be followed by Melco Crown Entertainment’s Studio City property.
The new projects will lead to a 70 per cent increase in new hotel capacity in the gambling hub.
Source: Asia Gambling Brief
