Two of the largest casino operators in the world are laying the groundwork for a potential gambling establishment in Thailand.
While casinos and some gambling are currently banned in the country, the industry expects a change to be imminent.
Although the country is still in the midst of a political transition, a proposal to legalize casinos won cross-party support in the last House of Representatives and is expected to receive the green light from the new government.
See: After Legalizing Cannabis, Thailand Considers Casinos
But this change in legislation for gambling and casinos does not please everyone, according to a poll carried out in February 2023, a majority of Thais are against it.
See: In Thailand, the majority opposes the legalization of gambling and casinos
Galaxy Entertainment Group and MGM Resorts International are exploring the possibility of opening casinos in the country, according to sources who asked not to be identified due to the privacy of the matter.
Galaxy, the gaming, retail and hospitality group controlled by billionaire Lui Che-woo, is also exploring the possibility of launching gaming operations in the United Arab Emirates.
Representatives of Galaxy and MGM have been contacted, but have not commented on his plans.
Macau casinos endangered by China
These early efforts to break into new markets reflect concern among casino operators over deteriorating prospects for Macau, which once earned six times more gambling revenue than Las Vegas and offered historically high returns.
China wants the enclave to steer away from gambling in favor of entertainment and has cracked down on high rollers it suspects of money laundering, while also imposing increased surveillance of gambling activities.
While China’s reopening sparked a wave of tourism that saw Macau’s gaming revenue return in May to around 60% of pre-pandemic levels, that boom could fade sometime in the coming months. year as pent-up travel demand eases and more flights allow more Chinese to travel abroad.
It will likely take years for the city to add non-gaming attractions and events to attract enough visitors to fill the void left by VIP gamers, who accounted for half of total gaming revenue.
As Thailand and the United Arab Emirates could legalize casinos in the coming years, operators are looking to get a head start.
Attract travelers and gamers
Thailand is one of the top tourist destinations in the world, especially for visitors from other parts of Asia.
Before the pandemic, the Chinese were the largest tourist group in the country, accounting for around 28% of total foreign arrivals, followed by Malaysians and Indians.
According to Bloomberg Intelligence analyst Angela Hanlee, the UAE could rake in up to $6.6 billion in annual gambling revenue and eventually overtake Singapore, home to the popular Marina Bay Sands resort.
Galaxy has already opened offices in Thailand and the United Arab Emirates to promote its Macau business, while using that local presence to glean information on the ground, according to people familiar with the matter.
MGM, which is to operate a leisure center in Dubai, has established a base in Thailand and is among the companies that have spoken to a Thai parliamentary committee tasked with legalizing casinos, the people say.
The discussion took place ahead of the general election on May 14 and, although it is unclear what legislation the new government will enact, the commission’s proposal to create several casino complexes was approved by the House of Representatives in January.
In addition, Las Vegas Sands Corp has repeatedly expressed its interest in Thailand.
Its chief executive, Robert Goldstein, told an earnings conference call in January that the group is “looking carefully” at the country and would like to be in the market.
Businesses are in a good financial position to grow.
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Source: Bangkok Post
