Global gaming operators wait on Thai casino study
Global gaming operators, including four of Macau’s Big Six concessionaires, are waiting for a feasibility report on casinos in Thailand.
The Thai casino study was commissioned in March, after house members approved a draft Entertainment Complex Bill to boost tourism and investment. The bill passed, 253-4.
Due Wednesday, the report will weigh the economic, social and cultural impacts of legal casinos in the kingdom. It will also suggest a legal and regulatory framework.
If casino resorts are legalised, Thailand will be on a fast track to open. A March report from Maybank Investment Bank indicated that licenses would “be awarded in phases” with the first resort complex opening “in 2029”.
According to a government estimate, the resorts could generate taxes of 12bn baht (£260.4m/€309.1m/US$334.2m) in the first year. A new analysis from CSLA indicates a mature industry could reap up to $15.1 billion annually.
Key provisions of draft bill
Entertainment complexes. The resorts are defined as multifaceted destinations with hotels, food and beverage operations, entertainment venues and casinos. According to deputy finance minister Julapun Amornvivat, the government could choose to limit the gaming floor to 5% of total space.
Minimum investment. Licences would be offered for small, medium, large and extra-large complexes. In the first phase of development, only extra-large resorts are expected to be approved. They would require a minimum investment of 100bn baht
Taxation. Gross gaming revenue would be taxed at a proposed rate of 17%.
Entry and fees. The bill prohibits people under age 20 from casino gambling. Thai nationals would be required to register and pay a casino entry fee.
Global operators await green light, Thai casino report
Las Vegas Sands, MGM Resorts, and Wynn Resorts – all US companies that operate in Macau – have expressed interest in Thailand. Others looking at the market include Macau-based Galaxy Entertainment Group and Malaysia’s Genting Berhad.
In a 24 July Q2 call, LVS president and COO Patrick Dumont discussed Thailand’s potential. “Depending on the way it’s set up and the opportunity that’s there in terms of structure, it could be very interesting for us,” he said. “We’d love to be part of it.”
Wynn Resorts CEO Craig Billings has described Thailand as “a major tourism destination with… a world-class service culture. So, we will continue to closely monitor advancement of the legalisation process.”
Buddy Lam, Galaxy’s director of corporate affairs, recently told GGRAsia that Thailand is “one of the most popular destinations for travellers. We believe it will draw a lot of attention if it decides to open for IR development.”
MGM Resorts president and CEO Bill Hornbuckle has said that company is evaluating what the new market “may ultimately bring to the company”.
Quashing the ‘grey economy’ of illegal gambling
Thai Prime Minister Srettha Thavisin is a vocal supporter of casino resorts as a tourism driver. He also sees them as a way to rein in “the grey economy” of illegal gambling in the Buddhist kingdom.
“It’s time for our society to stop hiding the gambling, which is out there, and just properly regulate and take care of it,” he said.
“I am not sure when the law will get approved and an entertainment complex can start operation. It will probably take some time. During the interim period, we need to tackle those illegal activities.”