In today's increasingly intense gambling landscape in Asia, Thailand is undoubtedly the most eye-catching potential newcomer. As the Thai government actively studies the feasibility of legalizing casino resorts, MGM Resorts International, a global gambling giant, has taken the lead in expressing its investment intentions, but also set key conditions.
Tax rates and market access are the core variables of investment confidence.
In an interview with the Bangkok Post, Ed Bowers, MGM's Global Development President, pointed out that if Thailand wants to attract world-class gambling enterprises, it must adopt a pragmatic approach to taxation and local entry policies. He suggested controlling the gambling tax rate at around 17%, aligning with Singapore; in contrast, Macau's tax rate is as high as 40%, and Japan's is 30%. For us in the industry, this difference is enough to affect the break-even point of a project.
Bowers' second key suggestion is to allow Thai citizens to participate in gambling. He warned that relying solely on foreign gamblers, like the Korean Inspire casino, would be a high-risk business model. Inspire, a large casino resort built at a cost of $1.6 billion, suffered a loss of $104 million in its first year and has since been taken over and put up for sale by its lender, Bain Capital. This example is a wake-up call: the gambling industry needs local market participation to take root locally.
Previously, the Thai government had proposed restrictions on local gamblers, including a 5000 Thai Baht entry fee and even briefly considered a "millionaire clause" requiring participants to have assets of 50 million Thai Baht. If implemented, this regulation would exclude up to seventy percent of adults. Such a policy clearly runs counter to the broad participation needed by the gambling economy, fortunately, it was eventually canceled.
Bangkok, to become the new engine of gambling in Asia?
As gambling practitioners, we naturally focus on location and customer data. Bangkok is undoubtedly MGM's first choice, which is not surprising. The city not only has a population of over 11 million but also has strong transportation and tourism infrastructure. Last year alone, Suvarnabhumi International Airport welcomed 61 million passengers, more than half of whom were destined for Bangkok itself.
Bo Bernhard, a gambling industry expert, stated that Bangkok's market potential is sufficient to support the operation of two integrated resorts, and it may even surpass Singapore to become one of the largest gambling centers in Asia.
MGM's deep roots in Asia also underpin its bid for a Thai license. In addition to having been deeply involved in Macau for many years, the group is currently investing $8 billion in building its first integrated resort in Osaka, Japan, expected to open in 2030. This resort will feature 2500 rooms, 2000 slot machines, 200 tables, a theater, exhibition spaces, etc., reflecting its long-term commitment to the Asian market.
The race is on, and Thailand could become the next "Las Vegas"
However, MGM is not fighting alone. It is reported that Melco Resorts & Entertainment and Galaxy Entertainment Group have already set up offices in Bangkok. Wynn Resorts, Las Vegas Sands, Caesars Entertainment, and Hard Rock International, among other international giants, are also eager to enter the Thai gambling market.
In addition to Bangkok, Thailand has also listed Chonburi, Chiang Mai, and Phuket as candidates for future entertainment centers. This means that whether targeting international tourists or attracting domestic high-net-worth individuals, Thailand has highly flexible development space.
Summary:
From the perspective of practitioners, Thailand is throwing us a heavyweight invitation. Whether it can ultimately create a gambling industry miracle still depends on whether legislators can formulate tax policies aligned with international standards, an open and inclusive market access mechanism, and a regulatory system with a long-term perspective.
For MGM, betting on Thailand may be another turning point after Macau and Japan; and for the entire gambling industry, this policy game and investment competition are quietly reshaping the future of Asia's gambling landscape.
