Thai casinos getting closer to reality, may open before MGM Osaka
Thailand moved one step closer to legalizing casino resorts as the country's House of Representatives easily passed a bill on Thursday that would allow gaming venues to be included in entertainment venues.
Of the 257 House members in attendance, 253 voted in favor of the casino gambling legislation. Deputy Finance Minister Julapun Amornvivat said the feasibility study for the casino could now be presented to the national government cabinet. Assuming momentum continues to build, the first venue in Thailand could open ahead of MGM Resorts International's (NYSE: MGM ) integrated resort in Osaka.The first Japanese casino hotel is scheduled to open in 2030.
Assuming it takes two years to finalize the regulatory framework and three years to build, the first entertainment center may not open (in Thailand) until 2029. ” Maybank Investment Bank said in a note to clients today.
If Thailand's national cabinet formally approves entertainment complexes, up to eight such venues may be allowed, and the issuance of gambling licenses may occur in phases.
Thai casinos could surpass Japanese efficiency and emulate Singaporean model
Given its reputation as a major tourist destination in Southeast Asia and its affinity for Chinese and Western tourists, Thailand is expected to attract some of the biggest names in the gaming industry when it comes to casino licenses.
This situation may worsen if the Thai government continues to demonstrate efficiency in the legalization and regulatory process. Delays and ambiguity on these fronts are why many of the industry's largest operators ultimately threw in the towel on Japan, leaving the country with only the MGM Osaka venue left to start moving into casino gambling.
Analysts also expect Thailand's casino framework to be closer to that of Singapore than Macau, while low tax rates could be another factor attracting international operators.
“The proposed gambling tax rate is lower at 17% and proposes [Singapore-style] social protection measures,” Maybank analysts noted.
Singapore has just two integrated resorts, operated by subsidiaries of Genting Singapore and Las Vegas Sands (NYSE: LVS).
More details about Thailand Casino
If Thailand continues to impose a 17% tax on gross gaming revenue (GGR), Thailand’s casino tax will be the second-lowest in the region, behind Cambodia. This coupled with an expected 20-year license term, likely to be renewed every five years, may appeal to operators. There are also rumors that the maximum investment required could be between $2.5 billion and $3 billion, easily accessible to any operator that might be interested in Thailand.
The Thai government may favor building its first entertainment complex at some of 13 desirable locations in the east, north, northeast and south of the country, Maybank said. The country's prime minister will lead a committee to evaluate casino products.
Thailand’s entertainment complexes and casinos are expected to boost the country’s tourism spending by up to 52% annually. This is one reason why the country is likely to receive offers from some of the biggest names in the gaming industry.
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Source: www.casino.org
