Posted on: August 5, 2024, 11:03h.
Last updated on: August 5, 2024, 11:03h.
Should the country formally approve casino resorts, Thailand could grant operators 30-year permits. That detail was included as part of broader draft rules the government there released for public comment lasting through Aug. 18.
Gaming companies that are granted permits to operate in the Southeast Asian nation could renew their licenses for an additional 10 years, potentially allaying concerns associated with more frequent regulatory renewals in jurisdictions such as Macau.
The lengthy license period confirms recent analyst chatter that Thailand could follow a Nevada-style permitting regime in which operators don’t have to jump through a lot of hoops, spending capital and time, simply to reup gaming permits. That could be a source of allure for casino companies familiar with the Nevada regulatory landscape as well as those searching for longer licenses than what Macau traditionally extends.
Thai citizens are eligible to comment on the 22-page Draft of the Complete Entertainment Business Act B.E. through Aug. 18. That package contains details on entertainment venues, which would be homes to casino hotels, with one of the requirements being an upfront payment of $285 million by gaming companies to the government.
Thailand Banking on Casinos to Jumpstart Tourism
For years prior to the coronavirus pandemic, Thailand was one of the most visited Asian nations, frequented by tourists from China, India, and the West, but the global health crisis put a dent in Thai tourism and policymakers there are hoping casino gaming can provide a source of rejuvenation.
Tourism is one of Thailand’s key industries accounting for about 20% of total jobs and making up roughly 12% of the nation’s $500 billion economy. Foreign arrivals this year through July have jumped about 34% to more than 20 million from the same period in 2023,” reported Bloomberg.
It’s widely believed that Thailand could approve as many as five casino licenses to start with the locations rumored to be two in the capital city of Bangkok, and one each in the Eastern Economic Corridor, Chiang Mai, and Phuket.
Among the stipulations floated in the draft bill is that a casino can occupy just 5% of the space a gaming operator commits to with the rest allocated to hotel rooms and other amenities. Another important point is that Thai policymakers want operators to partner with the government, which is similar to the concession model employed in Macau.
Draft Rules Probably Not Deterrent to Thai Casino Bids
The 5% casino square footage mandate and the possibility of Macau-style concessionaire model probably won’t deter many gaming companies from pursuing Thai licenses for a simple reason: some analysts seeing the market there generating as much as $15.1 billion in annual gross gaming revenue upon maturity.
That coupled with what’s expected to be a favorable tax regime and the difficulty in finding new, lucrative gaming markets could be enough for most of the world’s biggest casino operators to at least kick the tires on Thailand.
Among US-based operators, MGM Resorts International said its MGM China unit would run its Thailand bid and Las Vegas Sands has said it’s monitoring developments in the country. There’s also speculation Wynn Resorts could consider bidding for a license there.
