Saturday, June 25, 2022

Japan GGR levies to be lower than Macau


One of the major considerations for operators considering investment in prospective Japan IRs is the rate of levies on GGR.

While the central government policies have yet to be determined, there seems to be a consensus about the general range that they will fall within.

Tomakomai city in Hokkaido is a step or two ahead of the central government, calling for operators to turn in an initial investment survey by September.

For the purposes of providing a “detailed plan,” the Tomakomai officials instruct the operators that “the amount of casino levies is assumed to be 25 percent of GGR.”

They also offered the guideline that entry fee for domestic customers will be set at JPY5,000 (US$45).

The estimate provided by this month’s analysis from Morningstar is in a similar range, foreseeing 20 percent levies on GGR and an JPY8,000 yen (US$72) entry fee to casinos for Japan residents.

All estimates agree that Japanese levies on GGR will be considerably lower than Macau’s effective rate of 39 percent.

The true figures are likely to become known when the IR Implementation Bill is opened for public comment in the autumn, though presumably some later adjustments will still be possible.

Asia Gaming Brief is a news and intelligence service providing up to date market information for worldwide executives on relevant gaming issues in Asia.

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