Thailand’s new prime minister is pushing casino resorts as a way to drive tourism and revenues. According to one analyst a Thai industry, done well, could overtake Singapore for GGR.
In 2018, analysts predicted that integrated resorts (IRs) in Japan would be gaming’s “next holy grail”. They estimated gross gaming revenue (GGR) of up to $25bn a year, rivalling Macau for dominance.
Covid-19 made short work of those projections. With the pandemic, investor interest plummeted. The Japanese government waited out the health crisis, then licensed just one of three planned IRs. When it opens in 2030, MGM Osaka is expected to generate about $3.2bn in GGR.
Meanwhile, analysts have been scanning the horizon for new green fields. The latest is Thailand.
Getting in the race
In a recent article in Channel News Asia, industry veteran and author Daniel Cheng said Thai lawmakers are all-in on casinos and will fast-track development to open ahead of MGM Osaka.
Ultimately, he wrote, Thailand could surpass Singapore as a top Asian gaming destination, putting it second only to the Chinese SAR.
Under Prime Minister Srettha Thavisin, elected last summer, Thailand is pursuing IRs with “lightning speed and efficiency,” Cheng wrote, unlike “Japan’s meandering journey to enact its casino legislation.”
As in Japan, the hope is that IRs will be an economic shot in the arm that also boosts tourism. Cheng says the industry could draw more than $10bn in foreign investment and create tens of thousands of new jobs.
But wait, there’s more. The Economist cites a study suggesting that Thai casinos would raise average tourist spending by 52%. Multiply that by a pre-Covid average of 40 million visitors per year, and that’s a lot of baht.
Operators lining up
The kingdom may issue five to eight IR licences. Possible locations include the Eastern Economic Corridor, Phuket and, of course, the riverfront capital of Bangkok.
As Cheng observes, an IR in the historic city could offer the entertainment and cultural diversity that characterises the Marina Bay Sands district in Singapore.
Global gaming giants are taking notice. Among US operators, Wynn Resorts, MGM and the Las Vegas Sands Corp have all expressed interest in Thailand. Others looking at the market include Macau-based Galaxy Entertainment Group and Malaysia’s Genting Berhad.
As Cheng observes, the success of Thailand IRs depends on three things: the country’s ability to attract top operators, how it creates a unique experience that blends world-class entertainment with Thai culture and how Singapore, Malaysia and other Asian jurisdictions up the ante to stay in the game.
“But what is clear is that there is political will across the parties to make it happen.”
Written by Marjorie Preston
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