Study: Thailand poised to open first casino by 2029, surpassing MGM Osaka

Jenny Ortiz April 4, 2024

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Study: Thailand poised to open first casino by 2029, surpassing MGM Osaka

Thailand could be on the brink of welcoming its inaugural Entertainment Complexes (EC), featuring casinos, as early as 2029, marking a significant shift in the country’s stance on gambling.

This projection comes amidst a swift momentum towards casino legalisation, as revealed by research conducted by Maybank Investment Bank.

Preceding MGM Osaka’s schedule

In a surprising turn of events, Thailand’s potential casino debut could precede the opening of MGM Osaka, which is slated for Autumn 2030. This ambitious timeline underscores Thailand’s determination to establish itself as a prominent player in the regional gambling landscape.

Strategic expansion plans

With Thailand proposing a relatively low tax rate of 17 percent on gross gaming revenue (GGR), positioning itself second only to Cambodia within ASEAN, the country aims to foster a robust gambling industry. Initial plans suggest the establishment of 5-8 ECs across strategic locations, including the Eastern Economic Corridor, southern regions like Phuket and Krabi, northern areas such as Chiang Mai, and northeast provinces like Nong Khai and Udon Thani.

Infrastructure development driving tourism

The chosen locations coincide with ongoing infrastructure development initiatives, including airport expansions, port enhancements, and the implementation of high-speed rail networks. These efforts are geared towards enhancing Thailand’s tourism appeal and attracting a diverse range of visitors to the ECs.

Regulatory framework and investment requirements

Anticipating a regulatory framework to be finalised within two years, coupled with a three-year construction timeline, the inaugural EC may materialize by 2029. Prospective licence bidders are expected to be locally incorporated entities with a substantial paid-up capital exceeding THB10 billion (€249 million). The initial licence duration spans 20 years, with provisions for renewal every five years.

Risk assessment for gaming corporations

Maybank’s research identifies Genting Singapore and NagaCorp as entities facing significant risks in light of Thailand’s proposed gaming landscape. While Genting Malaysia’s exposure seems relatively lower, with less than 20 percent of revenue derived from foreign sources, Genting Singapore’s Resorts World Sentosa might encounter challenges due to its heavy reliance on foreign clientele.

Investments and adaptations

Despite potential risks, both Genting Singapore and NagaCorp are actively upgrading their properties and expressing interest in securing a Thai EC license. Their proactive stance towards adaptation and investment might mitigate potential adverse impacts, ensuring their continued relevance in the evolving gaming market.