Mozambique: Five casinos generate US$36 million in investments

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Mozambique: Five casinos generate US$36 million in investments

10:38 CAT | 09 Aug 2024

FILE - For illustration purposes only. [File photo: Lusa]

Five casino concessions in Mozambique have generated investments totalling $36 million (€32.3 million), President Filipe Nyusi said in Maputo on Thursday.

These “private sector-driven ventures”, which the government has encouraged, “have resulted in an investment of just over $36 million”, said Nyusi at the opening of the 10th edition of Fikani, Mozambique’s International Tourism Fair.

On the same occasion, the head of state explained that these were “major investments in the tourism chain”, such as casino and slot machine concessions in Maputo, Beira, Tete, Nampula, Matola and Pemba.

According to information from Mozambique’s National Directorate of Gambling, the award of casino concessions in the country requires the share capital of the concessionaire’s commercial company to be at least the equivalent of almost $2.7 million (€2.5 million) and an investment of at least $5.5 million (€5.05 million) over up to five years.

For the effective operation of games of chance, the concessionaires have to pay the Mozambican state a Special Tax on Gambling, levied on gross gaming revenues, of % for concessions of up to 14 years, 25% for concessions of up to 19 years, 30% for concessions of 20 to 24 years and 35% for concessions of 25 to 30 years.

“Concessionaires must also pay Stamp Duty, corresponding to 50% of the price of entrance tickets to casinos,” states the National Directorate for Games of Fortune or Chance, while adding that they “are exempt from paying other taxes levied on profits from the operation of gambling”, as well as import duties on imported equipment and materials intended exclusively for the operation of the casino.

Lusa reported in June that revenue from taxes paid by casinos in Mozambique fell by almost 20% in the first three months of the year, year-on-year, to 71.4 million meticais (€1 million).

According to data compiled from the economic and social balance of the State Budget for the first quarter, the collection of this Special Tax on Gambling compares with 88.4 million meticais (€1.2 million) from January to March 2023.

This is a drop of 19.2% compared to the first three months of 2023 and only 5.8% of all the revenue that the government estimates it will collect from this tax in the whole of 2024, valued at almost 1,235 million meticais (€17.8 million).

According to figures from the Ministry of Economy and Finance, revenue from taxes paid by casinos in Mozambique grew by 21.9% in 2023 compared to the previous year to 371.1 million meticais (€5.3 million).

The collection of the Special Tax on Gambling in the 12 months of last year compares with 304.4 million meticais (€4.4 million) in 2022.

Source: Lusa