Thailand’s prime minister has pushed casino resorts to boost tourism and revenue. One analyst believes that a Thai casino industry could surpass Singapore in terms of gross gaming revenue.
Analysts predicted in 2018 that the integrated resorts of Japan will be “the next holy grail” for gaming. They estimated gross gambling revenue (GGR), which is up to 25bn dollars a year. This would rival Macau’s dominance.
Covid-19 blew away those predictions. Investor interest dropped dramatically with the pandemic. After the pandemic, Japan’s government licensed only one of its three planned IRs. MGM Osaka will generate $3.2bn of GGR when it opens in the year 2030.
Analysts have also been looking for greenfields. Thailand is the latest.
Get in the Race
Daniel Cheng, an industry veteran, author and columnist for Channel News Asia said that Thai legislators are committed to casinos and would speed up development in order to be open before MGM Osaka.
He wrote that Thailand, in the end, could overtake Singapore to become Asia’s top gaming destination. It would be second only behind China SAR.
Cheng writes that Thailand’s IRs are being pursued with “lightning-speed and efficiency” under Prime Minister Srettha Tavisin (elected last summer), unlike Japan, which has taken “a meandering path to enact casino legislation.”
Like in Japan, IRs are hoped to be a boost for the economy and tourism. Cheng claims that the industry can attract more than $10bn of foreign investment, and create thousands of jobs.
There’s still more. According to The Economist, a recent study suggests that Thai casinos could increase average tourism spending by up to 52 percent. If you multiply that figure by the average annual number of visitors to Thailand before Covid, which was 40 million people per year, that is a large amount of money.
Line up of operators
Five to eight IR licenses may be issued by the kingdom. Locations that are possible include Phuket, Eastern Economic Corridor and Bangkok.
Cheng argues that an integrated resort in Singapore’s historic district could provide the same entertainment and diversity as Marina Bay Sands.
The global gaming industry is taking note. Wynn Resorts and MGM, as well as Las Vegas Sands Corp., are among the US-based operators that have shown interest in Thailand. Galaxy Entertainment Group, based in Macau, and Genting Berhad of Malaysia are also interested.
Cheng points out that the success of Thailand IRs is dependent on three factors: “ability to draw top operators; ability to create a unique entertainment experience that blends Thai culture with world-class entertainment, and the way Singapore, Malaysia, and other Asian jurisdictions step up their game to remain in the competition.”
It is evident that all parties are willing to work together.
- Written by Marjorie Preston
