Overseas players who visit Macau casinos do not like to enter rooms specifically designated for them, although such a Macau government scheme offers casino operators the possibility of a low tax on such customers’ gross gaming income (GGR). That is the view of the president of MGM Resorts International, the parent company of the Macau operator MGM China Holdings Ltd.
MGM Resorts CEO and president Bill Hornbuckle said he “hated” foreign customers, or those outside of China, to be discriminated against. He spoke at the JPMorgan Games, Accommodation, Restaurants & Leisure Access Forum in the U.S. on Thursday.
MGM China operates casino resorts MGM Macau and MGM Kotai (pictured) in China’s gambling hub.
Mr Hornbuckle’s comments come in the context of discussions about using Radio Frequency Identification (RFID) technology in game chips to monitor the financial integrity of games.
Typically, these RFID know-how are used to verify and monitor the use, location, and value of casino chips used in table games.
MGM China has been recorded for using RFID in table games since 2016 during the previous Macau game licensing period.
In his recent comments, Mr Hornbuckle said an important benefit of RFID is that it can link game chips with individual players, and therefore wants them to expand relative to traditional tourism markets in Greater China, namely mainland China, Hong Kong and Taiwan, which is where the Macau government wants to see them.
He told an investor forum on Thursday: “We introduced a ‘chip-in-chip’ program a few years ago where basically all [game] chips are tracked.
“The benefits of that were game-free at the time, the casino brand knew exactly where to put our workforce,” he added.
MGM Resorts CEO also noted, “There were a lot of backend benefits in terms of accounting, finance, etc.”
He also now said, “The market is asking for international business outside of Greater China, which means Hong Kong, Taiwan and China.
“The only way to track it effectively was to put it in a private room [in a casino], because it was a different tax category. That meant everyone from places like Thailand would go gambling in a small room over there.”
Under the scheme, which provides a separate gaming zone for overseas players, casino concessionists in Macau will have to submit the necessary paperwork to qualify for an exemption of up to 5 percentage points of the 40% government levy on GGR.
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