Thailand Publishes Draft IR Bill
Thai lawmakers have published a draft bill laying out plans for integrated resorts (IRs) with gaming in the country, per iGB.
Prime Minister Srettha Thavisin has been a strong proponent of IRs as a way to bring back global tourism, decimated by Covid-19. Analysts say a legal gaming industry in the kingdom could generate up to 536.6 billion baht (US$15 billion) per year.
The ball really got rolling in March, when members of the House voted overwhelmingly for the inaugural version of the Entertainment Complex Bill. The legislation then went to parliament. On Aug. 5, it was released for a public comment period, which will last until Aug. 18.
The initial rules call for 30-year licenses, available to limited companies or public limited companies registered in Thailand. Each applicant would have to demonstrate paid-up capital of not less than 10 billion baht (US$281 billion).
Resorts must feature at least four non-gaming attractions.Tourist destinations like Phuket, Chiang Mai, and Chonburi are strong contenders for IRs. Two resorts could be developed in the Greater Bangkok area.
According to a study presented to the Thai parliament, casinos could boost average tourist spend by 52 percent. If approved, the government is expected to fast-track development of the new industry, with the first IRs opening as soon as 2029.
POGO Ban Could Get Philippines Off FATF Grey List
The Philippines’ recent ban on offshore gaming could expedite its removal from a “grey list” of jurisdictions at risk for money laundering. The country has been on the Financial Action Task Force (FATF) list since 2021.
The Philippines have been working to bolster its anti-money laundering protocols to get off the “grey list” of countries at higher risk for financial crimes. A new ban on Philippine Offshore Gaming Operations (POGOs) could facilitate its removal from the list, compiled by the FATF, according to iGB.
A presence on the grey list “damages a country’s reputation and reduces its international standing,” according to the FATF website. A listing can scare off foreign investors, including global banks, and make credit harder to obtain.
In comments to BusinessWorld, economist Eli M. Remolona Jr., head of the country’s central monetary authority, acknowledged that the ban could lead to “a drop in money laundering, which should help us exit the grey list.”
Coming off the grey list could help the Philippines attract more “legitimate” investment, said Chester B. Cabalza, president of International Development and Security Corp. of Manila.
Macau GGR Missed July Estimates
In July, for the second month running, Macau’s gaming industry missed revenue projections. Analysts blame Beijing’s new crackdown on illicit money exchanges and cross-border gambling, writes iGB.
Gross gaming revenue (GGR) were up 12 percent in July, to MOP18.6 billion (US$2.31 billion). But it missed analyst projections of 14 percent.
June numbers, too, were sluggish. According to Macau’s Gaming Inspection and Coordination Bureau (MGTO), GGR for the prior month rose 16.4 percent year-on-year. Analysts had called for 17.5%.
The shortfall can be attributed in part to a dip in seasonal tourism, and there being fewer weekend days in July 2024 vs. 2023.
But the overarching factor may be the government’s hardline stance on illegal money exchanges. Lawmakers launched the new campaign in June, when the Ministry of Public Security ordered “a fierce offensive against crimes such as illicit money-exchange activities.”
Despite slower traffic for July, the full-year trend is positive. For the first seven months of the year, GGR was up 36.7 percent from 2023 to MOP132.4 billion, or 76.1 percent of 2019 levels.
Singapore AML Law Lets Casinos Share Customer Data
Singapore’s Casino Control Act has been amended to let casinos act quickly after flagging suspicious transactions. Among other things, operators can freely share data on patrons, without their consent.
Singapore has strengthened its anti-money laundering and counter terrorism financing (AML/CTF) rules with new legislation enacted Aug. 6. The new regulations work in part by allowing the city’s two casinos to trade consumer data, without consumer consent.
The Anti Money-Laundering and Other Matters Bill includes an amendment to the Casino Control Act of 2006. The amended law allows gaming operators to share customer information without going through the Gaming Regulatory Authority (GRA), as previously required.
Will Osaka Expo Set Back MGM Resort?
The Osaka World Expo will take place in Japan in 2025. Reports say expo organizers have asked MGM Resorts International to pause construction of a multibillion-dollar resort during the event.
The six-month expo will take place from April to October, on Yumeshima Island on Osaka Bay. The event’s organizers reportedly have asked the developers of a $10 billion integrated resort (IR) on the island to suspend construction until the expo is over.
In 2018, Osaka Prefecture won the right to host the 2025 expo. At the time, MGM Resorts International planned to bid on one of the country’s first IR licenses, with a plan to open before the expo.
But the pandemic interrupted those plans, and delayed progress for several years. It also decimated interest in the jurisdiction, once seen as a rival to Macau. MGM did not win a license—the only one granted by the central government—until 2021. Its grand opening has been pushed back repeatedly, and it is currently scheduled for 2030.
Now the two developments are at cross-purposes. According to the Asahi Shimbun, event organizers fear that two megaprojects underway at the same time will tax the overburdened construction industry and create a logjam on Yumeshima, a 960-acre manmade island near the mouth of the Yodo River.
In March, MGM CEO Bill Hornbuckle said the company must begin initial construction soon if the IR is to open by 2030.
Australian Gambling Ad Ban May Lose Its Teeth
The Australian government is reportedly set to respond to the Murphy Report from 2023, though the total gambling ad ban it proposed is unlikely to be fully enforced. The anticipated response includes a cap of two gambling ads per hour until 10 p.m. and a ban on ads in the hour before and after live sports broadcasts.
Jamie Nettleton, partner at gaming law firm Addisons, told IGB the government seems cautious about upsetting the media, with no clear timeline for implementing these measures yet. Additionally, online gambling ads may face new restrictions, potentially impacting affiliate and influencer marketing.
Independent Senator David Pocock criticized the revised restrictions, calling them a betrayal of late MP Peta Murphy’s legacy. Peta had called for a total ban on gambling ads. Meanwhile, Australian gambling operators like Tabcorp and PointsBet have already begun to reduce their advertising efforts.
NICC Extends Term of Star Sydney Manager
Star Entertainment announced earlier this week that the NSW Independent Casino Commission (NICC) has extended the term of special manager Nick Weeks for Star Sydney until March 31, 2025. Per iGB, this comes as the regulator reviews the Bell Report, submitted on July 31, which will determine the casino’s suitability to continue operating.
Weeks has been overseeing Star Sydney’s remediation efforts since 2022, with his term extended multiple times due to ongoing compliance issues and a fraught relationship with the NICC. The casino could require up to five years to fully address its issues, with potential for outside bidders to take over if its license is revoked.
Star Sydney emphasized that no decision has been reached and that the report’s contents have not been disclosed. This uncertainty follows the resignation of key executives, including Chief Risk Officer Scott Saunders, whose tenure lasted less than 18 months.
