Thailand Considers 30-Year Casino Permits to Boost Tourism

Thailand may grant 30-year permits to casino operators if the country formally approves casino resorts. This detail was included in broader draft rules released by the government for public comment until August 18.

Gaming companies receiving permits to operate in Thailand could renew their licenses for an additional 10 years. This could alleviate concerns associated with frequent regulatory renewals seen in places like Macau.

The proposed lengthy license period aligns with recent analyst discussions suggesting that Thailand might adopt a Nevada-style permitting regime. This approach would minimize the bureaucratic challenges and costs associated with renewing gaming permits, potentially attracting casino companies familiar with Nevada's regulatory landscape and those seeking longer licenses than Macau typically offers.

Thai citizens can provide feedback on the 22-page Draft of the Complete Entertainment Business Act B.E. until August 18. The draft details the requirements for entertainment venues, including casino hotels, with a notable stipulation requiring an upfront payment of $285 million by gaming companies to the government.

Before the coronavirus pandemic, Thailand was a top destination for tourists from China, India, and the West. However, the global health crisis significantly impacted Thai tourism. Policymakers hope that introducing casino gaming can rejuvenate this vital industry.

Tourism is crucial for Thailand, accounting for about 20% of total jobs and approximately 12% of the nation’s $500 billion economy. Foreign arrivals through July this year have increased by about 34% to over 20 million compared to the same period in 2023, according to Bloomberg.

It is believed that Thailand might initially approve up to five casino licenses, with potential locations being two in Bangkok and one each in the Eastern Economic Corridor, Chiang Mai, and Phuket.

The draft bill suggests that a casino can occupy only 5% of the space allocated by a gaming operator, with the remainder dedicated to hotel rooms and other amenities. Another key point is that Thai policymakers want operators to partner with the government, similar to the concession model used in Macau.

The 5% casino square footage limit and the potential Macau-style concession model are unlikely to deter many gaming companies from seeking Thai licenses. Analysts project that the market could generate as much as $15.1 billion in annual gross gaming revenue once mature.

This, combined with an expected favorable tax regime and the scarcity of new, lucrative gaming markets, might attract most of the world's largest casino operators to consider opportunities in Thailand.

Among U.S.-based operators, MGM Resorts International has indicated that its MGM China unit would handle its Thailand bid. Las Vegas Sands is also monitoring developments in the country, and there is speculation that Wynn Resorts might consider bidding for a license in Thailand.

By fLEXI tEAM