Gaming Tax Malaysia
- Gaming Tax Malaysia 2020
- Gaming Tax Act 1972 Malaysia
- Gaming Tax Malaysia 2019
- Gaming Tax Malaysia Contact
- Gaming Tax Hike Malaysia
Gaming Tax Malaysia 2020
PETALING JAYA: Gaming players are not expected to be hit with a tax hike in the upcoming Budget, but the risk still remains for numbers forecast operators (NFO), according to a report from Alliance DBS Research.
The research house said it believed hiking the tax for this segment could be counter-productive as this could indirectly induce more illegal NFO activities, should NFOs decide to pass on the higher tax to the punters.
LAWS OF MALAYSIA Act 65 ARRANGEMENT OF SECTIONS GAMING TAX ACT 1972 Section 1. Short title and application 2. Amendments to gaming laws SCHEDULE 065e.fm Page 3 Friday, March 31, 2006 4:04 PM 065e.fm Page 4 Friday, March 31, 2006 4:04 PM 5 LAWS OF MALAYSIA Act 65 GAMING TAX ACT 1972. Any device which intended to be prejudicial to the interest of Malaysia or unsuited with peace. All genuses of Piranha fish. Cocoa pods, rambutans, pulasan, longan, and nam nam fruits from Philipines and Indonesia. Intoxicating liquors containing more than 3.46 milligrams per liter in any lead or in any compound of copper.
- Punters in Sabah cannot understand the difference in the way we are taxed 15% extra for every ticket we buy while our fellow punters in Peninsular Malaysia escape this gaming tax. Sarawakians are.
- Providers of legal and licensed gambling in Malaysia, such as the lottery operators and the company owning the nation’s one casino, are subject to payment of a number of different types of tax. These include a so-called ‘Goods and Services Tax’, a ‘Gaming Tax’ and a ‘Betting and Sweepstakes Duty’.
- The Malaysian government has not revised casino taxes since 1998, when the rate was altered from a 22% to 25% range, to a flat 25%. The gaming tax rate of 8% has not been changed for 15 years either. Casinos in nearby Macau are taxed at between 38% and 39%, while Singapore imposes a 5% tax rate on the VIP sector and 15% on the mass market segment.
“[NFO] players are on a stronger financial footing since late last year on the back of more stringent enforcement by the authorities in curbing illegal NFO activities. Furthermore, a considerable time has passed since the authorities last implemented a tax hike for the NFO sector,” it said.
Gaming Tax Act 1972 Malaysia
To recap, the government increased the gaming tax for NFOs to 8% back in 1998, while the pool betting duty for NFOs was increased to 8% in 2010.
Gaming Tax Malaysia 2019
There are however, rising concerns from investors, given the measures introduced in Budget 2019, namely: raising the casino licence fees from RM120 million to RM150 million per annum, the hike in casino duty from 25% to 35% of gross gaming income, the machine dealer’s licence fee being increased from RM10,000 to RM50,000 per annum, the gaming machine duties being increased from 20% to 30% of gross collection, and the reduction of special draws for NFOS by half to 11 draws.
The research house said that should the government decide to raise taxes, its sensitivity analysis shows that a 1% increase in casino duty will lower Genting Bhd and Genting Malaysia Bhd’s forward earnings by about 1% and 3% respectively.
Gaming Tax Malaysia Contact
“On the other hand, a 1% increase in gaming tax/betting duty could reduce Berjaya Sports Toto (BToto) and Magnum’s forward earnings by about 7% and 8% respectively. Nevertheless, we believe that the NFOs would likely to revise its prize structure to maintain its profit margins,” the report said.
Gaming Tax Hike Malaysia
Alliance DBS is maintaining its positive call on the sector, with Magnum Bhd its top pick.