caa a22 4500 445837411 CHVBK 20180317145334.0 cr unu---uuuuu 170323e20111201xx s 000 0 eng 10.1007/s10899-010-9235-8 doi (NATIONALLICENCE)springer-10.1007/s10899-010-9235-8 Casino Taxation in Macao: An Economic Perspective [Elektronische Daten] [Xinhua Gu, Pui Tam] Macao's gaming industry has experienced dramatic growth for 8years, yet with certain social costs due to compulsive gambling. The government has come under pressure for tax cuts even though its gaming receipts are falling relatively to the casino retained revenue. The request for tax relief is triggered by a recent decline in net profit despite fast growing gross gaming revenue under favorable market conditions. This is very likely caused by a substantial hike in casino operating costs due to increased competition and might also signal the presence of the principal-agent problem. Given the regressivity of gaming tax with respect to net profit, it is no surprise that casinos with lower profitability are more prone to seek tax cuts. The source of Macao gaming profit hinges on three distinct factors: rising demand from China, monopoly location for casinos, and market structure of oligopoly. These factors provide economic justifications for the current tax regime of Macao with a strong ability to pass tax burdens on to massive visitors. The government relies on casino tax revenue to deal with gambling related problems and promote local diversified development. Pushing for tax variability may create policy instability, business uncertainty, and unpredictable prosperity in the long term. Springer Science+Business Media, LLC, 2011 Casino taxation nationallicence Economic efficiency nationallicence Industrial diversification nationallicence Gu Xinhua Faculty of Business Administration, University of Macau, Av. Padre Tomás Pereira, Taipa, Macau, China aut Tam Pui Faculty of Business Administration, University of Macau, Av. Padre Tomás Pereira, Taipa, Macau, China aut Journal of Gambling Studies Springer US; http://www.springer-ny.com 27/4(2011-12-01), 587-605 1573-3602 27:4<587 2011 27 10899 https://doi.org/10.1007/s10899-010-9235-8 text/html Onlinezugriff via DOI 1 research-article jats NATIONALLICENCE 856 40 https://doi.org/10.1007/s10899-010-9235-8 text/html Onlinezugriff via DOI NATIONALLICENCE 700 1- Gu Xinhua Faculty of Business Administration, University of Macau, Av. Padre Tomás Pereira, Taipa, Macau, China aut NATIONALLICENCE 700 1- Tam Pui Faculty of Business Administration, University of Macau, Av. Padre Tomás Pereira, Taipa, Macau, China aut NATIONALLICENCE 773 0- Journal of Gambling Studies Springer US; http://www.springer-ny.com 27/4(2011-12-01), 587-605 1573-3602 27:4<587 2011 27 10899 Metadata rights reserved Springer special CC-BY-NC licence nationallicence BK010053 XK010053 XK010000 NATIONALLICENCE NATIONALLICENCE NL-springer