Even before the Covid-19 pandemic, the earnings of the gambling industry have been adversely impacted by the tax hike imposed by the Malaysian government on casinos. The casino duties have been raised to 35 per cent from 25 per cent of gross gaming revenue. Further, gaming machine duties was increased from 20 per cent to 30 per cent on gross collection.
P60 NEWSWIRE / INTERACTIVE / MARKET DATA
by the governments worldwide have placed significant pressure on the respective countries economies. Te tourism, leisure and hospitality and gaming industries are among the hardest hit by this unprecedented crisis.
In Malaysia, the pandemic and Movement Control Order (MCO) that began on March 18, has impacted both external and domestic demand, resulting in marginal economic growth and the weakening of the labour market conditions. However, economic activity has gradually resumed since the government eased the MCO, which allowed more businesses to operate.
Meanwhile, Number Forecast Operators (NFO) re- opened their doors after three months of closure in mid-June. Te number of NFOs was reduced from 11 to eight last year with big players mainly Berjaya Sports Toto (BST) and Magnum Bhd. Te 90 day lockdown saw 39 fewer NFO draws, although ticket sales were expected to return to normal.
Berjaya operates Toto betting under the Pool Betting Act 1967 and is the market leader in Malaysia among
all the NFOs with 680 outlets offering eight games. BToto saw revenues of RM3.64bn last year, whilst total group revenue (including also the Philippines, US and UK markets) for FY19/20 was RM4.65bn compared to RM6.69bn ($1.61bn) the year before.
Te group posted a lower net profit of RM134.2m saying it was impacted by losses in the Q4 2020 to due lockdown measures. BToto said Sports Toto cancelled 40 draws between mid-March and mid- June due to the MCO in Malaysia.
POST-COVID OUTLOOK by Sri Sarguna Raj and Tan Xin Ying at Christopher & Lee Ong
Even before the Covid-19 pandemic, the earnings of the gambling industry have been adversely impacted by the tax hike imposed by the Malaysian government on casinos. Te casino duties have been raised to 35 per cent from 25 per cent of gross gaming revenue. Further, gaming machine duties was increased from 20 per cent to 30 per cent on gross collection.
Te gaming industry was further impacted by the
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