Four of Macau’s six gaming operators are interested in investing in Thailand, according to a report from brokerage CLSA Ltd.
The report suggested the annual gross gaming revenue (GGR) value of the Thai casino industry could be as high as USD30.8 billion, with a base projection of USD15.1 billion.
Among the Macau gaming concessionaires, Galaxy Entertainment Group Ltd, Las Vegas Sands Corp, MGM Resorts International, and Wynn Resorts Ltd are believed to be considering investments in Thailand, said CLSA as cited in a GGRAsia report.
In contrast, Melco Resorts & Entertainment Ltd and SJM Holdings Ltd are less likely to participate due to financial constraints.
Las Vegas Sands and MGM Resorts are already investing in casino resorts in other Asian countries, while Wynn Resorts is building a casino resort in the United Arab Emirates.
Galaxy Entertainment, which had previously explored opportunities in Japan’s market, continues to seek international expansion, supported by a robust balance sheet, the brokerage said.
CLSA’s report highlights Thailand’s urgent need of an economic revival and its vote to legalize gaming, which brings the prospect of land-based casinos closer.
The proposed gaming licenses would be valid for 20 years, with a 17% tax rate, targeting foreign visitors as the primary clientele. Prospective license holders need to invest USD2.7 billion at minimum.
The country’s parliament showed strong support for a steering committee report in a March vote, with the institution indicating the process could take one to two years, followed by three to four years of construction.
This suggests the first entertainment complex may not come online until 2029 at the earliest.
In June, the government said Thailand will press ahead with plans to legalize casinos as part of large entertainment zones to be set up to generate more state revenue and enhance its image as a major tourism hub.
CLSA also mentioned that Thailand’s entertainment complexes are well positioned to deliver a property EBITDA margin similar to that of Singapore and the Philippines, due to the comparable gaming tax rate.
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