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Thailand Confirms It Wants Global Casino Giants to Bid for Licenses

A Thai finance leader is pushing policymakers to ready casino gaming legislation by the middle of this month and he’s making clear it should include provisions to allow global companies to bid for licenses in the Southeast Asian nation.

Thailand casino gambling
A Thai finance minister says he wants the country’s casino industry to be open to private sector companies. (Image: Outlook Travel Magazine)

Deputy Finance Minister Julapun Amornvivat balked at a suggestion parliament member Korrawee Prissanantakul who suggested that the planned entertainment complexes, which will include gaming venues be run by the government. While Amornvivat is prodding the Thai customs, excise, and revenue departments to prepare entertainment district plans by the middle of this month, he wants a measured approach.

We need to assess the project thoroughly to prevent negative impacts on the economy and society,” said the deputy finance minister in a recent interview with The Bangkok Post.

Thailand recently wrapped up a public comment period on the 22-page Draft of the Complete Entertainment Business Act B.E. That ran through Aug. 18 and by all appearances, Thai citizens are on board with the country introducing casino hotels as a way of boosting the tourism industry, which is one of the largest drivers of economic activity in the nation.

Big Names Already Mulling Thailand Casinos

With growth outlets hard to come by, particularly outside the US, some of the biggest names in the gaming industry are mulling entry into Thailand.

Las Vegas Sands, MGM Resorts International, and Wynn Resorts are among the US-based operators that could pursue Thai licenses. MGM previously said its effort in the country would be run by its MGM China arm, which operates two integrated resorts in Macau. Owing to its strong footprint in the Asia-Pacific region, Genting could also be a player for a Thai casino license.

Amornvivat told The Bangkok Post he envisions a scenario in which any private sector can bid for a permit in Thailand as long it meets various criteria. Those stipulations include an upfront investment of nearly $1.3 billion, an application fee of almost $13,000, and a licensing fee of approximately $640 million.

Add all of that up and it’d be a minimum of a $2 billion per operator to get a Thailand casino up and running and that could be attractive because it’s far less than the financial commitments gaming companies contend with in other regions.

Thai Casino Tax Also Attractive

Local taxes are another issue gaming companies deal with and there’s essentially no uniformity on a regional basis. However, it’s clear Thailand is looking to be appealing to the industry on that basis.

Experts believe Thailand will opt for a 17% tax on gross gaming revenue (GGR) — the same rate applied in Singapore. That tax rate is viewed as attractive and would be competitive with other casino markets in the region.

Last month, reports emerged indicating Thai policymakers supportive of the casino plan would like to see three gaming venues in the capitol city of Bangkok and at least two more in rural areas.

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Thaksin Shinawatra Confirms Support for Legalized Casinos in Thailand

New-Thai-PMs-influential-father-Thaksin-Shinawatra-confirms-support-for-legalized-casinosIn a significant development for the gaming industry in Thailand, former Prime Minister Thaksin Shinawatra has confirmed his support for the legalization of casinos. This endorsement from Thaksin, the influential father of Thailand’s newly appointed Prime Minister, Paetongtarn Shinawatra, is seen as a strong indication of the government’s direction towards legalizing casino resorts. Thaksin’s backing comes at a crucial time, following the recent removal of former leader Srettha Thavisin from office.

Economic Vision and Casino Legalization

Thaksin outlined his vision for revitalizing Thailand’s sluggish economy during a detailed speech titled “Vision for Thailand” on Thursday. Among the measures he proposed to stimulate economic growth is the development of large-scale integrated resorts (IRs) featuring legalized casinos. Thaksin emphasized the significant investment potential these projects could bring, with an IR in Bangkok alone estimated to attract investments of around TBH100 billion (US$2.90 billion). Similar projects in other provinces are projected to draw investments of approximately TBH50 billion (US$1.45 billion) each, according to a report by Bloomberg.

This stance aligns with predictions from industry experts who have anticipated that the Pheu Thai party, led by Thaksin’s daughter Paetongtarn, would continue to pursue casino legalization as part of its economic policy. William J Jones, Assistant Professor of International Relations at Bangkok’s Mahidol University International College, stated last week that “Thaksin and his daughter as new PM will continue with the casino plan, as tourism including MICE is a major plank of [their party]

Pheu Thai’s economic policies.”

Economic Stimulus and Policy Influence

Thaksin also voiced support for a substantial economic stimulus plan during his speech. The proposed TBH500 billion (US$4.5 billion) handout plan aims to distribute TBH10,000 to approximately 50 million Thai citizens via a digital wallet, with the stipulation that the funds be spent locally within six months. Thaksin described this plan as an “immediate economic boost in September,” stressing the need to stimulate the economy, which he noted has been stagnant for an extended period.

Regarding Thailand’s broader economic outlook, Thaksin remarked, “I think the Thai economy hasn’t hit the bottom yet but it’s unlikely to slide any further. The government has done many things and that will help control the situation.” He highlighted the importance of government leadership in these efforts, while also calling on the private sector to contribute.

Despite not holding an official position within the Pheu Thai party, Thaksin’s influence over his daughter’s administration is undeniable. Many political analysts believe that Thaksin will play a pivotal role in shaping policy, particularly in navigating the coalition government towards supporting casino legislation. Thaksin’s experience and political acumen could be crucial in securing backing from coalition partners, some of whom have expressed reservations about the casino initiative.

Path Forward for Casino Legislation

The timing of Thaksin’s endorsement is noteworthy, as it follows the conclusion of a two-week public feedback period on draft casino legislation. Released earlier in August, this draft outlines the key governance and operator requirements for the proposed casinos. The public feedback period, which concluded quietly over the weekend, represents a step forward in the legislative process. The removal of Srettha and the appointment of Paetongtarn Shinawatra as Prime Minister have injected new momentum into the discussion, with Thaksin’s support likely to be a decisive factor in the legislation’s progress.

As Thailand moves closer to potentially legalizing casinos, the involvement of Thaksin Shinawatra, with his vast political experience and influence, is expected to play a critical role in shaping the future of the country’s gaming industry.

Source:

New Thai PM’s Influential Father Thaksin Shinawatra Confirms Support for Legalized Casinos, asgam.com, August 23, 2024.

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Wynn Sees UAE Spend of $900M, Confirms Interest in Thailand Casino

Wynn Resorts (NASDAQ: WYNN) expects to contribute approximately $900 million to the Wynn Al Marjan Island integrated resort in Ras Al Khaimah, United Arab Emirates (UAE).

Wynn Resorts
Wynn and Encore on the Las Vegas Strip. The operator said it will spend $900 million in the United Arab Emirates and that it’s interested in a Thailand casino. (Image: Luxury Lifestyle Magazine)

That’s according to comments made by Craig Billings on the gaming company’s first-quarter earnings conference call late Tuesday, and that estimate is in line with the operator’s minority stake in the $4 billion project.

Budgets move here and there, but no substantial movement. Our capital contribution will be round numbers, call it, $900 million, that heavily depends on the construction leverage,” said Billings in response to a question from CBRE analyst John DeCree. “So we’re in the midst of figuring that out now. But you can figure something like 50-50 debt to equity and then we would be 40% of the equity.”

Wynn’s local partners in the UAE are Marjan LLC and RAK Hospitality Holding LLC., while Wynn Design and Development is running creative and design operations.

Wynn Making Fast Progress on UAE Casino Resort

Billings’ comments regarding Wynn’s financial commitments to the UAE  project arrived after the Las Vegas-based company said construction there is advancing rapidly and that the hotel tower could be topped off in late 2025.

Wynn Al Marjan Island could be the first casino hotel in the Middle East North Africa (MENA) region and, if it’s approved to operate a gaming venue, it could be a significant long-term earnings driver for Wynn while potentially touching off a spate of casino development in the Emirates. The property is expected to command 5.6 million square feet, but the casino would account for just 4% of that space.

Billings called Wynn Al Marjan Island “a meaningful high return on investment (ROI) project” while adding that more updates could be made public later this year. Last year, Wynn said the UAE endeavor can generate up to $600 million in earnings before interest, taxes, depreciation, and amortization (EBITDA) — a forecast that’s not been altered.

Additionally, gaming won’t be the centerpiece of the integrated resort. Dubai, which is located just an hour away from Al Marjan Island, is one of the most visited parts of the Middle East, and the tourists that flock to the emirate embrace high-end dining options, luxury retail, and other glitzy amenities, all of which are synonymous with Wynn’s Las Vegas properties.

Wynn Interested in Thailand, Too

Against the backdrop of a rapidly evolving regulatory process in Thailand, Billings confirmed Wynn is monitoring that situation and could eventually make a play to open a casino resort in the Southeast Asian country.

In Thailand, it’s early days and we have yet to see the regulatory and licensing structures,” said the Wynn chief executive officer on the earnings call. “Thailand is already a major tourism destination with significant tourism infrastructure and a world-class service culture. So we will continue to closely monitor advancement of the legalization process. I remain incredibly bullish about the future of our company.”

Billings added that Thailand is a compelling market with sound infrastructure and a robust tourism industry while acknowledging a variety of gaming companies could pursue casino licenses there.

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