MGM China reportedly mulling over proposal for Thai casino permit.
MGM China is rumored to be considering bidding for a casino license in Thailand as a means to advertise its Macau properties to Thai tourists.
Pansy Ho, the co-Chairperson at MGM China, is said to have recently conversed with Tourism Authority of Thailand (TAT) Governor Thapanee Kiatphaibool to promote tourism to Macau in Thailand while also assessing potential opportunities for the gambling company to become part of Thailand’s rapidly developing entertainment district plan, which includes proposals for casinos.
Iwan Dietschi, senior vice-president of hospitality at MGM China, an operator of two integrated resorts in Macau, stated that the Thai market is high on their list of priorities as it represents the company’s largest group of visitors from Southeast Asia and the most rapidly expanding market, according to The Bangkok Post.
MGM China is predominantly controlled by Las Vegas-based MGM Resorts International (NYSE: MGM) and operates two integrated resorts in Macau.
Thailand Part of MGM China's Expansion Plans
It's not certain that MGM China will seek a Thai gaming license, and there's speculation among industry experts that when Southeast Asia enacts regulations, those guidelines might be unattractive to some large-scale operators.
Nevertheless, Thailand could serve as a significant conduit through which the gambling company increases its Macau customer base. Typically, Macau tourism is dominated by residents of mainland China and Taiwanese nationals, with less substantial contributions from other countries in the region, including South Korea. However, incoming travelers to the Asia-Pacific casino hub from other countries are increasing.
During the first five months of this year, tourists from Thailand represented the fifth-largest influx of arrivals to Macau, according to the Macau Government Tourism Office (MGTO). This confirms the validity of MGM China’s attempts to draw more Thai vacationers to Macau.
These efforts are gaining momentum as May represented the best month of aggregate gross gaming revenue (GGR) for the six Macau operators since January 2020. In large part, this upside was due to mass-market players, the gambling demographic most suitable for Thai visitors to Macau. MGM China has a sales representative in Thailand and is expected to soon augment related staff there.
MGM Eyes Thailand
MGM Resorts International has already expressed a clear intent towards Thailand, but specific details have not been disclosed yet. With the US-based operator working on an integrated resort in Osaka and its China branch seeking ways to attract more visitors to its Macau casino hotels, it may be more practical for MGM China to represent the gambling giant in Thailand.
This hasn't been confirmed, but what is clear is that Thailand is aiming to get entertainment district regulations approved before the end of this year, and five locations for such ventures have already been chosen. This could pave the way for casino bidding to commence as early as next year, with construction potentially starting shortly thereafter.
The number of entertainment centers that will be approved remains undetermined, but it's evident that with the casino component, those venues could be drivers of economic growth for Thailand. It's anticipated that each entertainment district would require a minimum investment of $2.75 billion, a figure easily achievable for any number of global gambling titans.
