It can be claimed from du Players. Those profits have been as yet fixed at 1 per cent according to the usage established at Macao. It is obvious, however, that, if reduced to five or four per cent, the Licenses would become proportionately less valuable, and the fees payable to Government might be reduced in a corresponding ratio.
At the same time, the profits may be regarded as a deterrent tax on gambling, and their reduction cannot be effected without rendering gambling more attractive, a result which I should be sorry to see brought about by any action of the Government. Experience, however, is at present all that is required to ascertain the average minimum to which the profits of the Licensees and the fees to Government can be reduced without infringing the general results at which His Majesty's Government aims.
On that subject, I am not yet in a position to report that everything at present is working smoothly and satisfactorily so as to afford good hope in due time of a solution of all those difficulties.
I have great pleasure, however, in reporting the satisfactory and admirable way in which the licensed houses are being managed.