Thailand Pushes for Faster Casino Regulations, Potentially Displeasing US Casinos
The Thai Prime Minister, Srettha Thavisin, apparently wants the policymakers and the Ministry of Finance to work on speeding up the casino legislation process in order for him to give his approval for gaming venues in the country. However, some analysts are worried that the regulations might not be attractive enough to entice major US operators.
According to The Bangkok Post, at least five locations in Thailand are being considered to potentially become the nation's first gaming venues. These include two in Bangkok, one in the Eastern Economic Corridor, one in Chiang Mai, and one in Phuket.
Srettha Thavisin is eager for a casino bill to reach his desk as quickly as possible so that construction on the first venue can start right away. This move could potentially help Thailand beat Japan in the race to open the first integrated resort, with the goal of having it open before the expected 2030 launch of MGM Osaka.
The Potential Players in Thailand's Gambling Market
As buzz surrounding Thailand as a potential gambling hub grew in recent years, so did the speculation about which gaming companies might be interested in operating in the Southeast Asian country. Some of these companies include Las Vegas Sands, MGM Resorts International, and Wynn Resorts – all of which already have a presence in Macau. Sands also runs one of the two integrated resorts in Singapore. However, some experts suggest that Thailand's casino regulations could be less appealing to US operators.
"Thailand is too early in the process to gauge if Wynn could eventually be involved," Seaport Research analyst Vitaly Umansky said last week. "Our thinking is that the market will not be ready for the US regulated operators to be involved."
The US operators themselves haven't made any official comments about their concerns regarding Thailand, but some experts believe the country's casino market will likely have a more relaxed regulatory environment than what the operators are accustomed to in the markets they currently operate.
Possible Allure of Thailand's Casino Tax Rates
Although there may be hesitation from US-based gaming companies over Thailand's casino regulations, the potentially lower tax rates could be a draw. Experts predict that Thailand will levy a 17% tax on gross gaming revenue (GGR), which is the same rate as Singapore's. This tax rate would also place Thailand in direct competition with Japan's planned casino tax rates.
The precise number of entertainment centers to be permitted has yet to be determined, but it's clear that each one would require a significant investment of at least $2.75 billion. This is a manageable amount for many global gaming giants.
Predictions on the number of casinos Thailand might allow range from five to eight to as many as 20. While the latter number seems too high, there's undoubtedly significant potential for economic growth in this sector.
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