If Thailand OKs legal casinos, they would compete with gaming halls on the border in Cambodia, which are open only to foreign patrons, and also affect the industries in Vietnam, Myanmar and Laos.
In March, Thailand’s House of Representatives overwhelmingly voted for legislation to bring integrated resorts (IRs) to the kingdom, with 253 of 257 lawmakers in the National Assembly’s lower chamber approving the plan. The House plan will now go to the cabinet for final approval.
Prime Minister Srettha Thavisin endorses the move, which aligns with the government’s goal to double foreign tourism to 80 million arrivals by 2027. One study suggests that IRs with gaming could boost tourist revenues by more than half and create an estimated 50,000 new jobs.
Maybank Investment Bank analysts predict that if Thailand approves a legal industry, the first IRs could open as early as 2029, competing with casinos as far away as Singapore, and getting a jump on the first IR planned for Japan.
In comments to the Khmer Times, Thourn Sinan, chairman of the Cambodia Chapter of the Pacific Asia Travel Association said, “Thailand is a popular tourist destination with a large number of visitors, and the establishment of casinos in Thailand could divert some of the casino traffic away from Cambodia.” However, he added, the level of competition depends on regulations and amenities beyond gaming. Meanwhile, according to Inside Asian Gaming, Thailand’s proposed 17 percent tax on gross gaming revenue would be one of the lowest in the region.
In other details, locals would be able to gamble provided they pay an as-yet undetermined entry fee. The government would issue a 20-year initial license that would then be renewable every five years. Large-scale casino resorts would require a minimum investment of $2.7 billion.
A total of 5.4 million international tourists visited Cambodia in 2023—a fraction of the 28 million who visited Thailand in the same year. The prime minister wants to make the most of that patron base, and add to it. “In the past, we have wasted enough time and opportunity,” he said. “The government will reclaim the lost time and turn it into an economic opportunity for the country and its citizens.”
The Times reported that Thailand could also cooperate with rival markets on cross-border tourist visas so gamblers could visit several jurisdictions with relative ease.
In addition to the capital city of Bangkok, possible IR locations include the Eastern Economic Corridor, encompassing Rayong, Chonburi and Chachoengsao; southern Thailand, including Phuket, Phang Nga and Krabi); northern Thailand, including Chiang Mai, Chiang Rai and Lampang); and the northeast, home of Nong Khai, Udon Thani, Khon Kaen and Nakhon Ratchasima.
Potential bidders are said to include the Las Vegas Sands Corp.; MGM Resorts International; and Malaysia-based Genting. Wynn Resorts CEO Craig Billings has said the company is “observing Thailand” and “actively considering greenfield development opportunities” in the country. “We will continue to closely monitor the advancement of the legalization process.”
MGM Resorts CEO Bill Hornbuckle has called Thailand “interesting.”
“The cost to do business there, the margins that could be had would be compelling, very,” he said in the group’s most recent conference call.
