Dieter
Dieter
Joined: Jul 23, 2014
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January 17th, 2015 at 1:25:51 AM permalink
Quote: Deck007

Could you specify what are these "Assumptions"



Can you specify what exactly is being taxed?
May the cards fall in your favor.
sc15
sc15
Joined: Sep 28, 2014
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January 17th, 2015 at 1:30:28 AM permalink
Quote: Deck007

Could you specify what are these "Assumptions"



First of all, I think you have your facts wrong because you're calling it a sales tax.

A tax on gross gaming revenue is NOT a sales tax.
Deck007
Deck007
Joined: Mar 3, 2014
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January 17th, 2015 at 2:10:11 AM permalink
Quote: Dieter

But that would be a tax on overall revenue, not gaming revenue. This is inconsistent with what you've previously presumed.

If it were on gaming revenue, it would be 2,897,084 / 173825.

Net income is 860,499 to 686674, drop of 20%.


Without knowing the specifics, we don't know if there are other taxes that get offset by this.... like income taxes, property taxes, etc.



No I just mention gaming revenue before. And I agree on the gaming side the hit will be 20%.

Let us leave out other non gaming items now as not to complicate the issues.
They will likely pass the sales tax on the non gaming items on to the customers like most business.
Deck007
Deck007
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January 17th, 2015 at 2:15:32 AM permalink
Quote: sc15

First of all, I think you have your facts wrong because you're calling it a sales tax.

A tax on gross gaming revenue is NOT a sales tax.



Please it is not me. The gov. is calling it sales tax, Genting is calling it sales tax.
GWAE
GWAE
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January 17th, 2015 at 5:26:22 AM permalink
Where is your source? If a Google search comes up with nothing then I am assuming this is all speculation. You are trying to have a conversation on what impact this will have but it is impossible to know when you can't give any vital details.
Expect the worst and you will never be disappointed. I AM NOT PART OF GWAE RADIO SHOW
Dieter
Dieter
Joined: Jul 23, 2014
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January 17th, 2015 at 6:29:27 AM permalink
Quote: Deck007

Please it is not me. The gov. is calling it sales tax, Genting is calling it sales tax.



Is there a newspaper article?
Maybe a government website that announces this?
May the cards fall in your favor.
Dieter
Dieter
Joined: Jul 23, 2014
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January 17th, 2015 at 6:38:47 AM permalink
https://www.facebook.com/themeparktax/posts/1462180974057585

While Facebook isn't an authoritative reference on this, if it's a GST, it almost certainly doesn't apply to gaming revenue. It should only apply to hotel, restaurant, spa, and shopping purchases.

Their analysts suggested a 10-12% hit.
May the cards fall in your favor.
Deck007
Deck007
Joined: Mar 3, 2014
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January 17th, 2015 at 7:34:38 AM permalink
http://klse.i3investor.com/blogs/amresearch/33050.jsp

http://winstocks.blogspot.sg/2015/01/genm-4715-genting-malaysia-mixed-signals.html

http://www.asiagamblingbrief.com/intelligence/latest-headlines/2857-malaysia-seen-trimming-gaming-taxes-to-offset-gst

http://www.theborneopost.com/2014/09/30/upcoming-gst-budget-2015-could-impact-gaming-players/

https://forum.lowyat.net/topic/3247661/all

https://brokingrfs.cimb.com/zn59oXCPXhtu5kElPGZU3rm9C9kFWfKCSC72AU-70ih85DiSG1icEdp26MJLs_NTzc0kAZy5Ul01.pdf

After lengthy negotiations with the government, the formula for the calculation of GST has been agreed upon. GST of 6% will be calculated on gross gaming revenue (GGR) less gaming tax (of 25%). GENM’s reported gaming revenue is based on GGR less commissions to junkets but before gaming taxes. As GENM does not reveal GGR or junket commissions, we are unable to calculate the precise impact. However, GENM provided indicative guidance on the negative impact of GST on its EBITDA, as management is still finalising its own internal estimates. It estimates that FY15 EBITDA will be negatively affected by RM200m-300m, equivalent to c.3-4% pts of its Malaysian gaming EBITDA margin, which it will try to mitigate by managing operational costs.
JimRockford
JimRockford
Joined: Apr 17, 2012
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January 18th, 2015 at 7:33:49 PM permalink
Quote: sc15

Oh ok, no surprise since that's a crappy third world country.

Divide the earth into three worlds if you like, but Malaysia is a beautiful country populated with warm hard working people.
"Truth is ever to be found in the simplicity, and not in the multiplicity and confusion of things." - Isaac Newton
rdw4potus
rdw4potus
Joined: Mar 11, 2010
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January 18th, 2015 at 7:43:53 PM permalink
Quote: JimRockford

Divide the earth into three worlds if you like, but Malaysia is a beautiful country populated with warm hard working people.



Yep. And this casino is huge, beautiful, and 20 miles outside of one of the more advanced cities in the world.
"So as the clock ticked and the day passed, opportunity met preparation, and luck happened." - Maurice Clarett

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