Macau casino operators eye potential Thai market, CLSA says
CLSA says four of Macau’s six concessionaires have expressed interest in investing in Thailand if it legalises casino gambling.
Macau.- Investment group CLSA has reported that four of Macau’s six casino operators are considering investing in Thailand if the country legalises casinos.
MGM Resorts International and Galaxy Entertainment Group have already shown interest in the possibility of casino resorts in Thailand. Analysts says Las Vegas Sands and Wynn Resorts are also interested.
CLSA has predicted that the legislative process will take one to two years, followed by another three to four years for construction. That timeline suggests that the first casino could open by 2029. CLSA estimates that a 17 per cent tax on US$15.1bn gross gaming revenue (GGR) could generate US$2.6bn in annual tax revenue.
In June Thailand’s Ministry of Finance said the final draft of a bill to legalise entertainment complexes with casinos was nearly complete. Sixteen government agencies have had input on the proposal. This feedback will be included in supplementary documents. If it receives cabinet approval, the bill will be sent to the Office of the Council of State for further review before being presented to the House of Representatives.
Five locations are considered potential hosts: two in Bangkok, and one each in the Eastern Economic Corridor, Chiang Mai, and Phuket. In May, authorities suggested that complexes would be allowed to include a casino component of no more than around 5 per cent of the project’s total area. The proposed gaming licences would be valid for 20 years, with a tax rate of 17 per cent and a minimum investment of US$2.7bn required from licence holders.
Las Vegas Sands already has Marina Bay Sands in Singapore and MGM Resorts is investing in the MGM Osaka casino in Japan. Wynn Resorts is also eyeing a casino in the United Arab Emirates.
