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Post by Blitz on Jul 29, 2024 8:53:00 GMT -5
CLSA: Thailand gaming market could generate annual GGR of US$15 billion by Ben Blaschke Mon 29 Jul 2024 at 18:52 www.asgam.com/index.php/2024/07/29/clsa-thailand-gaming-market-could-generate-annual-ggr-of-us15-billion/A legalized Thai casino market could eventually generate annual gross gaming revenues of US$15.1 billion in the long-term, making it the third largest market globally based on current GGR levels. That’s according to a new in-depth study by brokerage CLSA, which sees growing visitation from China and India and government leniency on table and slot machine counts as working in operators’ favor as the Thai gaming market develops. The 100-page study by analysts Jeffrey Kiang, Naphat Chantaraserekul and Leo Pan is based on an estimated 39 million annual visitors to the Southeast Asian nation – up from an expected 35.5 million this year – with average annual expenditure of US$386 per person, roughly in line with Singapore. “When comparing this data with other markets, Thailand would rank as the third-largest gaming market [based on] 2023 [levels],” CLSA said. “We consider Singapore a good proxy for Thailand due to similarities in geography, visitor mix and overall appeal as a travel destination.” The brokerage also sees strong return on investment, with Thailand’s anticipated business-friendly atmosphere, relatively low 17% gaming tax rate and absence of a table cap potentially allowing for an EBITDA margin of 40% or higher once full ramp is achieved – in line with margins observed at Marina Bay Sands and Resorts World Sentosa. This, CLSA says, represents annual GGR of US$2.1 billion and EBITDA of US$805 million per complex, or ROIC of 23.9% with a payback period of around four years at full ramp. According to CLSA analysts, efforts by Thailand’s government to improve tourism infrastructure will pay dividends in the long run due to enhanced appeal among key tourist markets such as China and India. Current travel penetration into these source markets currently sits at 0.1% to 0.2%. Despite this, CLSA sees no real threat to Macau’s global gaming dominance from Thai casinos. “Macau will likely remain resilient considering its close proximity to China and much shorter length of stay than Thailand (different purposes of travelling),” the brokerage states. “The key issue for Macau is still the lack of new land and hotel supply, rather than insufficient demand. |
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Post by Blitz on Jul 29, 2024 9:02:59 GMT -5
Four of six Macau ops could pursue Thai market: CLSA Jul 29, 2024 Newsdesk www.ggrasia.com/four-of-six-macau-ops-could-pursue-thai-market-clsa/Four out of Macau’s six casino concessionaires “have expressed interest in investing in Thailand” against the backdrop of that country’s mulling of casino legalisation, says a Monday report from brokerage CLSA Ltd. The institution thinks the annual gross gaming revenue (GGR) value of a Thai casino industry – mostly driven by foreign players – could be US$8.5 billion, up to as much as US$30.8 billion, though CLSA says its “base case is US$15.1 billion”. “Among Macau gaming concessionaires, we believe Galaxy [Entertainment Group Ltd], Las Vegas Sands [Corp], MGM Resorts [International] and Wynn Resorts [Ltd] have expressed interest in investing in Thailand,” stated the report, referring to the parent groups of Macau licensees. “In contrast, Melco [Resorts & Entertainment Ltd] and SJM [Holdings Ltd] are less likely to show interest given their balance sheet constraints,” added Hong Kong-based CLSA analysts Jeffrey Kiang and Leo Pan; along with their colleague Naphat Chantaraserekul, head of Thailand research. Las Vegas Sands, parent of Macau operator Sands China Ltd, already has Asian-region diversification via its Marina Bay Sands resort in Singapore. MGM Resorts, parent of Macau licensee MGM China Holdings Ltd, is investing in the MGM Osaka casino resort in Japan. Wynn Resorts, controller of Macau concessionaire Wynn Macau Ltd, is building Wynn Al Marjan Island, in Ras Al Khaimah, in the United Arab Emirates. Galaxy Entertainment, which – like the other five Macau operators – had previously explored the Japan market, was according to CLSA “still looking for overseas expansion; supported by a cash-bloated balance sheet”. The analysts’ report stated: “Burdened by mounting debt from Covid[-19], Thailand is in dire need of an economic revival. “In a decisive move, lawmakers have voted to legalise gaming, bringing the opening of land-based casinos closer. Targeting foreign visitors as the primary players, the proposed gaming licences would be valid for 20 years, with a 17 percent tax rate. Prospective licence holders need to invest US$2.7 billion at minimum,” added CLSA. With what the brokerage termed “overwhelming support” from the country’s parliament in a March vote on a steering committee report, “we expect such process to last for one to two years, followed by another three to four years of construction,” suggesting “the first entertainment complex could come online in 2029 at the earliest”. A 17% gaming tax on circa US$15.1 billion GGR, would equate to US$2.6 billion from gaming tax each year, said CLSA. It suggested property-level margin on earnings before interest, taxation, depreciation and amortisation (EBITDA) could exceed 40 percent. “With a comparable gaming tax rate… [to] Singapore and the Philippines, Thailand’s entertainment complexes are well positioned to deliver similar property EBITDA margin,” stated CLSA. According to industry observers, five possible locations had so far been mentioned for such resorts. Two were in the capital, Bangkok (pictured), and there had been mention of one each in: the country’s Eastern Economic Corridor; Chiang Mai; and Phuket. The size and scope of any casino industry developed in Thailand might fall short of its government’s expectations, according to some commentators at the Global Gaming Expo (G2E) Asia 2024 casino industry trade show and conference in Macau. |
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Post by laupailee on Jul 29, 2024 12:04:32 GMT -5
I don't buy the grandiose predictions.
Thailand already has too many other compelling attractions to complete with gambling.
A casino will do okay, but not great.
Chinese tourists, as well as all the rest of the world, go to Thailand to get their nuts drained.
Gambling? Unnecessary.
This will not be incremental business, just another slice taken from the same traveling Chinese gambler market, further dividing the visitations to Singapore, S Korea (Walker Hill) and Philippines.
LPL
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Post by Blitz on Jul 30, 2024 9:17:56 GMT -5
When I go to Bangkok, I am always amazed by all the tourists/people just walking the streets in the Sukhumvit area. The Soi Cowboy section is packed too. There must be 50,000 to 100,000 people out on the streets there. I think a casino there would have huge numbers and margins.  And now this... Galaxy Ent keeps options like Thailand in mind: firm Jul 30, 2024 Newsdesk www.ggrasia.com/galaxy-ent-keeps-options-like-thailand-in-mind-firm/Macau casino operator Galaxy Entertainment Group Ltd has told GGRAsia it is “focused” on its development in that city, but wanted to “keep its options open”, acknowledging that Thailand is “one of the most popular destinations” for travellers. The comment was from Buddy Lam Chi Seng, the casino group’s director of corporate affairs. It was in response to GGRAsia’s enquiry after a Monday report from brokerage CLSA Ltd suggested Galaxy Entertainment was among four of Macau’s six operator brands likely to be interested in – and have the financial capacity for – investment in casino business in Thailand, if that Southeast Asia nation legalises such activity. The brokerage surmised Thailand could be at minimum a US$8.5-billion market annually in terms of gross gaming revenue (GGR). Thailand’s House of Representatives in March backed a study by a panel of lawmakers that favoured the setting up of legalised casinos within large entertainment venues to attract tourists. Each casino resort would require at least THB100 billion (US$2.78 billion) in investment, as suggested in the House committee report. As of March 31, Galaxy Entertainment’s cash and liquid investments amounted to HKD26.4 billion (US$3.38 billion) and the net position was HKD25.0 billion after debt of HKD1.4 billion. Mr Lam stated in his Monday remarks: “Galaxy Entertainment Group remains focused on our development in Macau.” “We will look at overseas opportunities on a case by case basis,” he stated. “We believe that it is important to keep our options open and to be flexible to changing market conditions.” Galaxy Entertainment has recently been wrapping up Phase 3 of its Galaxy Macau casino resort – including a new luxury hotel called Capella at Galaxy Macau. The group is already advancing construction of Phase 4 which is due to be finished in 2027, according to commentary in May. The firm has budgeted to spend HKD43 billion on Galaxy Macau. “Thailand is one of the most popular destinations among travellers in the world, renowned for its warm hospitality, beautiful scenery and diverse food offerings. We believe it will draw a lot of attention if it decides to open for IR [integrated resort] development,” observed Mr Lam. MGM, Wynn, LVS also watching According to industry observers, five possible locations had so far been mentioned for casino resorts in Thailand. Two were in the capital, Bangkok, and there had been mention of one each in: the country’s Eastern Economic Corridor; Chiang Mai; and Phuket. The parent businesses of three other Macau operators where mentioned by CLSA as potentially being in the running for Thailand, should legalisation proceed. They were MGM Resorts International, majority owner of MGM China Holdings Ltd; Wynn Resorts Ltd, parent of Wynn Macau Ltd; and Las Vegas Sands Corp, controller of Sands China Ltd. All three have made previous comment on the topic, but with each of them saying they wanted to understand first how the market is likely to be structured. Patrick Dumont, president and chief operating officer of Las Vegas Sands, said on the group’s July 24 call to discuss its second-quarter earnings: “I think Thailand is a very interesting opportunity. “The market there is very strong for different types of tourism. And I think depending on the way it’s set up and the opportunity that’s there in terms of structure, it could be very interesting for us.” He stated referring to the group’s existing casino resort business in Macau and at Marina Bay Sands in Singapore drawing players from Thailand: “We love the market as a place to source customers.” He added: “If you go and visit, you’ll have a great experience there, and we’d love to be part of it. So, if Thailand becomes available, we’d be very interested.” Though Mr Dumont also noted of Thailand’s possible casino legalisation: “I think it’s early days yet. We’ve been spending time there along with the rest of our industry, looking to see if we could be helpful to that process. And we’re waiting and seeing what happens.” Understanding opportunities On MGM Resorts’ first-quarter earnings call on May 1, Bill Hornbuckle, that group’s chief executive and president, stated the company was also keeping an eye on Thailand. He said the group was “trying to understand” the opportunities in Thailand, and what that market “may ultimately bring to the company”. MGM Resorts is already committed to diversification in Asia as majority partner in a JPY1.27-trillion (US$8.20-billion currently) casino complex in Japan, MGM Osaka, due to open in 2030. Wynn Resorts for its part is working on a scheme in the Middle East, called Wynn Al Marjan Island, in Ras Al Khaimah, in the United Arab Emirates. It is described as US$3.9-billion venture involving local partners, in which Wynn Resorts is a 40-percent equity investor. Craig Billings, Wynn Resorts’ chief executive, stated on its first-quarter conference call on May 7: “In Thailand, it’s early days and we have yet to see the regulatory and licensing structures. “Thailand is already a major tourism destination with significant tourism infrastructure and a world class service culture. So, we will continue to closely monitor advancement of the legalisation process.” |
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Post by laupailee on Aug 1, 2024 7:22:31 GMT -5
Blitz, I lived in Bangkok for seven years.
Just look at the picture you posted, all those guys walking around in tee shirts.
Just looking for cheap sexual entertainment, not likely to drop significent money on bacarat hands.
JMHO!
LPL
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Post by Blitz on Aug 1, 2024 9:56:43 GMT -5
MGM Resorts confirms potential Thailand IR bid will go through Macau subsidiary MGM China by Ben Blaschke Thu 1 Aug 2024 at 06:28 www.asgam.com/index.php/2024/08/01/mgm-resorts-confirms-potential-thailand-ir-bid-will-go-through-macau-subsidiary-mgm-china/MGM Resorts has confirmed that any bid it launches to develop an integrated casino resort in Thailand will be done through its Macau subsidiary MGM China. The company’s CEO and President, Bill Hornbuckle, told investors during MGM’s 2Q24 earnings call that he and MGM China Chairperson and Executive Director Pansy Ho would visit Thailand in August to explore the opportunity, with the Ministry of Finance due to deliver the findings of a feasibility study into legalized casino gaming in the weeks ahead. “[Thailand] is a venture that we’re interested in and if we do that, we’ll do it through MGM China Holdings,” Hornbuckle said. The MGM Resorts boss had previously outlined the company’s interest in pursuing Thailand, stating in a previous earnings call that “the cost to do business there, the margins that could be had would be compelling.” CLSA analysts this week suggested Thailand could become a US$15 billion market if fully realized, with four of Macau’s six concessionaires said to be interested in pursuing a license. MGM Resorts, meanwhile, has also showed interest in the UAE where it is part of a development in Dubai that will boast three MGM-owned hotel brands. The company is looking to incorporate casino gaming into that development, or alternatively in Abu Dhabi, although any such action is dependent on either of those Emirates deciding to issue a casino license at all. Nevertheless, Hornbuckle described as “great news” this week’s announcement by the General Commercial Gaming Regulatory Authority (GCGRA) that it had issued the UAE’s first lottery license. “This is something they said they would do, so I’m encouraged that the rest of this will roll out as defined now,” he said of the UAE regulator. “Timing is still unknown, it kind of keeps moving around, but I can’t imagine by end of this quarter or into early next quarter that we won’t know with some specificity around what it means for Abu Dhabi and then potentially what the umbrella language is as it relates to all of the other Emirates. “We’re excited by our position in Dubai where we and our partner have an amazing facility property that’s under construction as we speak and has an accommodation for large scale casino [if licensed], so there are a lot of opportunities throughout the region.” Hornbuckle noted that the UAE’s license is “going to be spoken for”, referencing Wynn Resorts’ ongoing development in Ras Al Khaimah, but said “I would suggest that each Emirate will have its own opportunity to issue a license and we’ll continue to follow that closely, particularly for Dubai.” |
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Post by Blitz on Aug 2, 2024 10:21:02 GMT -5
Thailand poised to become Macau’s ‘frenemy’ with casino legalization: CLSA By Viviana Chan - July 29, 2024 agbrief.com/news/thailand/29/07/2024/thailand-poised-to-become-macaus-frenemy-with-casino-legalization-clsa/The move to legalize gaming in Thailand could unlock a substantial $15.1 billion market, creating new dynamics in the regional gaming landscape. Analysts at CLSA suggest that this development, while significant, presents ‘more opportunities than threats’ for Macau’s gaming concessionaires. In an in-depth research spanning 100 pages, analysts Jeffrey Kiang, Naphat Chantaraserekul, and Leo Pan indicate that with the first entertainment complex potentially launching by 2029, Thailand’s nascent gaming sector is poised to attract substantial interest. Despite the potential influx of Chinese tourists—a critical demographic in Thailand’s post-COVID tourism recovery—key distinctions between Macau’s and Thailand’s tourism offerings are expected to preserve the resilience of Macau’s gaming industry. Macau, known for its well-established gaming infrastructure and unique cultural heritage, offers a different experience from Thailand’s emerging market. Thailand’s tourism market is renowned for its affordable, high-quality offerings and has swiftly recovered from the pandemic, with visitation projected to reach 35.5 million in 2024, just 11 percent below 2019 levels, according to the Bank of Thailand. Looking ahead, China and India, which accounted for 33 percent of Thailand’s visitors in 2019, are anticipated to drive long-term growth. With travel penetration rates of 0.8 percent for China and 0.1 percent for India, which are lower than those of other Asian countries (ranging from 1.4 percent to 14.5 percent), they have significant potential. While Thailand may become a new growth driver for Macau’s gaming concessionaires, analysts believe that gaming legalization in Thailand ‘will not significantly cannibalize Macau’s tourism market.’ ‘The vast differences in visitor profiles, such as length of stay and origin, support this conclusion’. This diversification in tourist attractions ensures that both markets can coexist and potentially drive growth through regional tourism synergies, benefiting both destinations. Macau gaming Growth driver for the next 20 years Macau’s casino operators increasingly view Thailand as a promising avenue for organic growth over the next two decades. With supportive policies and a robust tourism industry, Thailand could eventually generate annual gross gaming revenues of $15.1 billion, potentially ranking as the world’s third-largest by 2023. In terms of geography, visitor mix, and appeal, Singapore emerges as the most comparable market to Thailand, according to CLSA research. Under the proposed 17 percent gaming tax rate, Thailand’s entertainment complexes are expected to achieve an EBITDA margin of 40 percent or higher once fully operational. This is favorable compared to Singapore’s integrated resorts, which, with a similar gaming tax rate, have achieved EBITDA margins of around 50 percent. In contrast, Macau’s properties, facing a 40 percent gaming tax rate, have seen EBITDA margins between 25 percent and 30 percent. As such, Singapore serves as a more accurate benchmark for assessing profitability in Thailand compared to Macau, as noted by CLSA. With a minimum required investment of $2.7 billion per license holder, Thailand’s gaming properties are likely to provide significant economic value when compared to Macau’s six concessionaires. The favorable gaming tax rate and potentially less stringent regulations regarding table and slot machine counts make Thailand an attractive investment destination. CLSA estimates that the return on invested capital (ROIC) could reach up to 23.9 percent, ‘surpassing the weighted average cost of capital (WACC) of 9.6 percent to 13.2 percent for the six companies.’ Thailand Regional Impact The potential expansion of Thailand’s land-based gaming market is expected to impact the broader Southeast Asian gaming landscape, with significant implications for regional operators. According to CLSA research, although there may be some risk of cannibalization, particularly in markets similar to Singapore, ‘the threat to Macau remains limited,’ due to its unique appeal to mainland Chinese tourists compared to Thailand’s international visitor base. Among Macau operators, ‘Galaxy is likely to experience the greatest impact,’ due to its interest in expanding beyond regional markets and its financial capacity to support such initiatives. In contrast, ‘Melco and SJM are less likely to bid for a Thai concession,’ due to their current strategic priorities and financial considerations. ‘SJM’s priority will be ramping up its Grand Lisboa Palace, while in Melco’s case, it may well be interested but the amount of debt currently on its books could preclude such a move.’ For US-based Macau operators, it is expected that MGM will increase its dividends to help fund its parent company MGM Resorts‘ venture in Thailand; the same may apply to Wynn Macau and Sands China, whose respective parents are likely to bid for a concession. |
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Post by tumacau on Aug 2, 2024 12:55:45 GMT -5
I simply want to get an answer to one simple question: Will locals be allowed to enter the casinos unrestricted?
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Post by Blitz on Aug 5, 2024 7:49:29 GMT -5
Thailand casino regulator to be based in Bangkok as governance structure outlined Ben Blaschke Mon 5 Aug 2024 at 17:00 www.asgam.com/index.php/2024/08/05/thailand-casino-regulator-to-be-based-in-bangkok-as-governance-structure-outlined/Thailand’s future casino regulatory body will be based in Bangkok with branches located strategically around the country, reporting directly to a new Policy Committee to be chaired by the Prime Minister, a draft casino bill made public on Friday reveals. It also outlines a multi-level approach by which the Policy Committee will be supported by an Executive Committee tasked with establishing the budgetary and staffing entitlements of the regulator itself. The 22-page draft bill is currently open for public feedback until 18 August, having been released by Thailand’s Council of State after months of discussions. According to the bill, key to formally legalizing “integrated entertainment venues” with casinos in Thailand will be establishing an office to regulate them with a stated purpose to “regulate, supervise, control, promote, and support integrated entertainment venues in accordance” with the Act. This regulatory body “will have its head office in Bangkok and will establish branches or representatives at any other place as necessary,” the bill says. Among its stated tasks are supervising, inspecting and monitoring the operations of integrated entertainment venues, addressing public complaints, preventing and remedying “impacts” arising from the venues, and determining the characteristics of individuals prohibited from entering a casino area. In charge of establishing key casino policy, including those around management, the issuance of licenses, tax rates, permitted business nature, entry levies and restrictions, employee criteria, executive criteria and permitted casino floor space, will be the Policy Committee – to be chaired by Thailand’s Prime Minister and with the Deputy Prime Minister as Vice Chairman. It will also comprise nine senior government officials as directors including the Minister of Finance, Minister of Tourism and Sports, Minister of Social Development and Human Security, Minister of Commerce, Minister of the Interior, Minister of Justice, Commissioner of the Royal Thai Police, Secretary-General of the National Defense Commission and Secretary-General of the Board of Investment, plus six qualified members appointed by the Prime Minister “with knowledge and ability in economics business administration, law or society.” Those six expert committee members must be Thai nationals and at least 35 years of age. They must not be a government official or an employee of any state agency, have previously held political positions, hold any criminal record or be “an incompetent person or a quasi-incompetent person.” The Executive Committee, working under the Policy Committee, will be chaired by a person appointed by the Prime Minister and boast nine permanent secretaries from the aforementioned ministries and departments, plus three expert members also appointed by the PM. According to the bill, licensees will be granted an initial 30-year license term, reviewable every five years, while there are 10 business types listed that can form part of Thailand’s “integrated entertainment venues” – Department store; Hotel; Restaurant, nightclub, discotheque, pub or bar; Stadium; Yacht and Cruising Club; Gaming; Swimming pools and water parks; Amusement park; Area for promoting Thai culture and OTOP products; Other businesses as specified by the Policy Committee. |
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Post by Blitz on Aug 5, 2024 7:51:49 GMT -5
Thailand releases draft casino bill for public feedback by Ben Blaschke Mon 5 Aug 2024 at 05:53 www.asgam.com/index.php/2024/08/05/thailand-releases-draft-casino-bill-for-public-feedback/Thailand’s Council of State has released a draft bill of proposed casino legislation with a call for public feedback until 18 August 2024. The 22-page Draft of the Complete Entertainment Business Act B.E. outlines plans to develop large-scale entertainment venues with casinos in locations to be determined by the Thai government. It also proposes the establishment of a venue policy panel led by the Prime Minister and the creation of a regulatory body. Such entertainment venues would be operated by private companies which must have paid-up capital of at least TBH 10 billion (US$285 million). The release of Thailand’s draft casino legislation to the public comes after the Thai cabinet earlier this year endorsed a special House committee report recommending the legalization of integrated resorts with casinos. The cabinet had subsequently asked the Ministry of Finance to lead a group of 17 agencies in conducting their own feasibility study. It is understood that the cabinet’s recommendations for casino resort developments included a stipulation that the gaming areas in legalized integrated resorts should not exceed 5% of the total project area, with the remainder to be utilized for complementary hotel and entertainment offerings. It also called for the projects to be joint investments between the government and private operators, which could follow a concession model similar to that utilized in Macau. While the exact number and locations of such IRs has yet to be determined, everywhere from Bangkok and surrounding areas to the likes of Pattaya, Phuket, Rayong and Chiang Mai have been proposed. A recent note from Maybank claimed that Thailand could open its first IRs as early as 2029, which would result in the Southeast Asian nation realizing legal casino gaming ahead of Japan where MGM Resorts International’s US$10 billion IR development in Osaka isn’t slated for completion until at least 2030. Brokerage CLSA has stated that a legalized Thai casino market could generate annual gross gaming revenues of US$15.1 billion in the long-term, making it the third largest market globally based on current GGR levels. |
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Post by Blitz on Aug 6, 2024 5:04:00 GMT -5
IR industry a boost to Thai tourism and foreign investment: Analysts Nelson Moura - August 6, 2024 agbrief.com/news/thailand/06/08/2024/ir-industry-a-boost-to-thai-tourism-and-foreign-investment-analysts/Thai-based market analysts told AGB that, if approved, the new integrated resort industry could be a boost to both tourism and foreign investment in the Southeast Asian country. The proposed Integrated Entertainment Business Act is currently under public consultation until August 19th and seeks to modernize outdated laws and create a comprehensive framework to support and regulate the industry’s growth. The IR Act aims to align Thailand’s entertainment and tourism industry with international standards, fostering economic growth and enhancing government revenue. Kent Jenkins, a Bangkok-based market analyst and CEO of Sportzplanet, told AGB the gambling legislation is key for Thailand to strategically position itself for the future and capitalize on its global popularity as a tourist destination. Thai Kent Jenkins, CEO of Sportzplanet “In doing so, it needs to consider its options, and there’s probably none bigger than the lucrative casino industry to boost the tourism sector’s revenues, some say by up to $12 billion. The proposal to construct multiple entertainment (casino) complexes is massive and will boost both tourism and attract foreign investment”, Jenkins indicated. The analyst also highlighted the proposed 17 percent casino tax rate as a competitive edge, saying it aligns well with neighboring Singapore’s tax bracket for mass gross gaming revenue (GGR), making the country an attractive prospect for investors, especially compared to the Philippines’ 25 percent and Japan’s 30 percent tax rates. “Overall, the convergence of favorable tax policies, government initiatives, and the booming tourism industry does paint a promising picture for the future of the Thai casino sector”, Jenkins added. Reflecting on Thailand’s progressive stance, Jenkins believes it to be “only a matter of time before Thailand moves ahead”. “It’s important to remember that, in 2022, Thailand became the first country in Asia to decriminalize cannabis and is on course to become the first in Southeast Asia to legalize same-sex marriages. There is no doubt that Thailand casinos would attract tourists and investment“, he told AGB. Meanwhile, Bangkok-based commercial sponsorship and marketing expert Paul Poole expressed support for the changes, describing the proposed amendments to Thailand’s gambling laws as “crucial for regulating the industry more effectively” The founder of Paul Poole (South East Asia) Co., Ltd. emphasized that updating the legislation would help protect consumers and capitalize on the economic benefits, particularly in the tourism and MICE sectors. “The proposed amendments to Thailand’s gambling laws will undoubtedly open up the category for sponsorship. This regulatory shift is poised to create substantial opportunities for rights holders and brands, facilitating new sponsorship and partnership avenues in both the sports and entertainment sectors”, Poole noted to AGB. “The timeline for these changes will be crucial in allowing stakeholders to strategically plan and secure deals ahead of major events, ultimately driving significant economic benefits,” indicated the executive. |
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Post by Blitz on Aug 9, 2024 10:39:10 GMT -5
Wynn Interested in Thailand Casino, Says UAE Resort Rapidly Progressing Posted on: August 6, 2024, Todd Shriber www.casino.org/news/wynn-interested-in-thailand-casino-says-uae-resort-progressing/Wynn Resorts (NASDAQ: WYNN) today said it would be interested in bidding for a casino permit in Bangkok while noting construction on its integrated resort in the United Arab Emirates (UAE) is progressing at a brisk pace. Wynn Resorts CEO Craig Billings. He said the company is making fast progress on its UAE casino hotel and is interested in Thailand. (Image: Wynn Resorts) The Las Vegas-based company previously confirmed interest in Thailand, but comments made by executives to that effect on a conference call with analysts this afternoon are among the operator’s most over to date on the matter. We would pursue it out of Wynn Resorts out of the U.S.-listed entity,” said CEO Craig Billings in response to a question from Morgan Stanley analyst Stephen Grambling. “It’s still early days. You’re right, there has been progress, and it’s encouraging to see, and it seems as though the legislators in Thailand really want to get this moving, which is great.” In prepared remarks earlier on the call, Billings identified Bangkok as the city Wynn is likely to focus on in pursuit of a Thailand casino license. That’s country’s capitol city and its largest by population. Good Timing for Wynn to Comment on Thailand In what’s no more than interesting coincidence, Wynn’s second-quarter earnings report arrived a day after Thai politicians posted draft rules pertaining to casino gaming in the country. Citizens there have until Aug. 18 to comment on the matter. Those rules include a proposed 30-year licensing period and a mandate that casinos command just 5% of integrated resorts’ overall square footage. The Thai government is also seeking the concessionaire model akin to what’s used in Macau, meaning the government would essentially be a partner of gaming companies operating casinos there. Those are among the details that are known at this point, but they haven’t been formally approved, meaning gaming companies and their executives are still in wait-and-see mode on Thailand. “We need to see more details on the regulatory and licensing structures, but the market is an attractive market, and it’s probably conducive to meaningful investment, pending, again, a deeper understanding of the regulatory and licensing structure, you have amazing tourism infrastructure, you have a really strong service culture and a favorable operating expense, structure available in that market,” added Billings on the call. “So we’re continuing to monitor the process very, very closely and we’re active on the ground there.” Wynn Touts UAE Progress In the second quarter, Wynn contributed $357 million of its equity to the Wynn Al Marjan Island project in the United Arab Emirates (UAE). That include the acquisition of a 40% pro rata share of 155 acres on the island on which the venue is being built. “As a result, our joint venture now owns not only the land under Wynn Al Marjan, but also 70-plus acres of land for potential future development on the Island,” noted Billings. “Of course, we have banked land before in the US and Macau, and we are confident that acquiring this sizable Al Marjan land bank will prove valuable over the long term.” Hotel construction is now up to the 15th floor and stands at 90 meters, making the Wynn venue already tallest building in that Emirate. Last week, the General Commercial Gaming Regulatory Authority (GCGRA) approved a lottery in Abu Dhabi — a move some industry observers expect will pave the way for approval of casino gaming. Should that happen, Wynn could have a significant head start on rivals eyeing the UAE. |
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Post by Blitz on Aug 23, 2024 8:09:24 GMT -5
Galaxy’s strong finances fuel growth in Macau and potential entry into Thailand: CBRE Viviana Chan August 23, 2024 agbrief.com/news/macau/23/08/2024/galaxys-strong-finances-fuel-growth-in-macau-and-potential-entry-into-thailand-cbre/Macau gaming operator Galaxy Entertainment Group (GEG) is well-positioned to ‘invest heavily’ in growth opportunities in Macau and potentially other jurisdictions, such as Thailand, while still returning capital to shareholders through dividends, says CBRE. Previously, a report from brokerage CLSA mentioned that four of Macau’s six casino concessionaires have shown interest in investing in Thailand, with GEG being one of them. The brokerage added that GEG, like the other five Macau operators that formerly explored the Japan market, is ‘still seeking overseas expansion, backed by a cash-rich balance sheet’. CBRE analysts John DeCree and Max Mars note in their latest investment memo that Galaxy Macau’s recovery is now ‘catching up’ to the broader market, and the company’s forward commentary suggests that this trend is continuing into the third quarter. ‘The company also has a meaningful development pipeline to capture future long-term growth from the eventual re-acceleration of visitation to Macau. While macroeconomic concerns may overshadow this in the near term, the company is thinking long-term and is positioned to weather any storm until then,’ the memo states. Commenting on the company’s 2Q24 results, CBRE notes that GEG reported adjusted EBITDA of HK$3.2 billion for 2Q24, marking a 12 percent increase from the previous quarter and reaching 73 percent of the level seen in 2Q19. Despite a negative impact of approximately HK$20 million due to unfavorable hold, Adjusted EBITDA would have risen by 15 percent quarter-on-quarter and recovered to 74 percent of 2Q19 if adjusted for this factor. The company’s performance was driven by improved operational efficiency and returns from investments in Galaxy Macau’s gaming area and Galaxy Arena, which contributed to higher visitation. The company also began deploying smart tables in July, with management noting market share gains relative to 2Q24. Cost management and operational efficiency Galaxy Entertainment demonstrated an improvement in managing operational expenses, with total operating expenses declining by 2 percent quarter-on-quarter despite an increase in gross gaming revenue (GGR) and overall revenue. While there was a rise in promotional activities during the quarter, these have since stabilized, resulting in a 40 basis points expansion in Property EBITDA margin, including an 80 basis points improvement at Galaxy Macau. Labor expenses, which account for 75 percent of operating expenses, remained stable, with employee headcount returning to 2019 levels. If the company can maintain this stability as it completes various development projects, further EBITDA growth is expected from improved revenue flowthrough. Galaxy Entertainment, Raffles Hotel, Macau Encouraging outlook for 3Q Looking ahead to 3Q24, Galaxy Entertainment is expected to benefit from its renovated gaming area at Galaxy Macau, a redefined strategy for concerts and events at Galaxy Arena, an expanded sales team, and the rollout of smart tables. Initial results from these efforts are already visible, with July market share improving, table drop increasing by 15-20 percent sequentially from 2Q, and visitation to Galaxy Macau rising by 30 percent quarter-to-date and 50 percent in August compared to 2Q. These developments are anticipated to coincide with broader market benefits, including the completion of Zhuhai Airport’s Terminal 2 and the fourth cross-harbor bridge connecting the peninsula to Cotai by year-end. |
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Post by laupailee on Aug 24, 2024 6:30:15 GMT -5
I simply want to get an answer to one simple question: Will locals be allowed to enter the casinos unrestricted? Tuma, that's actually the only question that matters. Will the Thai population be able to gamble freely or not? If it's just another tourists-only casino set-up, the handle is limited . . . not "the next Macau". More like the next Inchon, the next Walker Hill, the next Manila . . . LPL |
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Post by Blitz on Aug 24, 2024 7:57:23 GMT -5
I simply want to get an answer to one simple question: Will locals be allowed to enter the casinos unrestricted? Tuma, that's actually the only question that matters. Will the Thai population be able to gamble freely or not? If it's just another tourists-only casino set-up, the handle is limited . . . not "the next Macau". More like the next Inchon, the next Walker Hill, the next Manila . . . LPL How many casinos and where would be good questions too. If it is like Singapore with only two concessions, it would work out very well for both venues. Bangkok and Pattaya Beach seem like good locations. |
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Post by Blitz on Aug 28, 2024 7:35:58 GMT -5
If Thailand Legalizes Gambling, Casinos Won’t Need to Look Far for Gamblers Posted on: August 27, 2024, Devin O'Connor www.casino.org/news/if-thailand-legalizes-gambling-casinos-wont-need-look-for-gamblers/Thailand’s controlling political party, the Pheu Thai, continues to pursue the authorization of casino resorts. Thailand casino gambling Thailand residents would strongly support the liberalization of casino resorts, a new study finds. The Thailand government is mulling authorizing a handful of casino entertainment complexes to spur tourism. (Image: Outlook Travel Magazine) Should slot machines and table games come to the Southeast Asia nation that’s home to nearly 66 million people, new research formulated by a special House committee reported this week that the overwhelming majority of patrons would likely be Thai people. The committee chaired by Deputy Finance Minister Julapun Amornvivat reported to the cabinet that about 90% of casino guests would presumably be domestic residents. The study used data analytics based on Macau, the Chinese Special Administrative Region where six casino operators report that about 90% of its patron traffic comes from local residents and people from the mainland. Using those gauges, the Thai House committee concluded that a similar forecast should be expected in its own casino resorts. Local Focus The study committee assumed that about 10% of the Thai population aged 18 to 75 who are not national welfare cardholders and therefore would qualify to patronize a casino would do so. That would equate to about 3.7 million people. With Thailand attracting roughly 11 million foreigners a year, and the committee assuming that 10% of that population would be willing to gamble, or 1.1 million travelers, the report resolved that the possible casino customer base would total around 4.8 million people. The committee believes its estimate is conservative, as global gaming industry research has concluded that about a quarter of adults gamble worldwide. Gambling has also historically been more a part of Asian cultures than in other parts of the world. Gambling in Thailand is currently limited to horse racing wagering and the state-run lottery. However, illicit gambling like underground casinos and sports betting rings is rampant throughout Thailand. Newly minted Prime Minister Paetongtarn Shinawatra, who assumed the office earlier this month after Prime Minister Srettha Thavisin resigned, is carrying on Srettha’s belief that regulated casinos would eradicate underground gambling, provide an economic and tax boost to Thailand, and increase tourism. Srettha resigned effective Aug. 14 amid political pressure for hiring Pichit Chuenban to work in his office. Pichit served jail time for attempting to bribe Supreme Court officials in 2008. Casino Details Paetongtarn’s Entertainment Complex Policy Committee will determine the precise regulations that will govern casinos in Thailand should the Senate vote to authorize an initial allotment of up to five resorts. The regulatory committee remains fielding public input but has previously recommended charging casino operators a five billion baht (US$150 million) licensing fee renewable annually for one billion baht. Licenses would be good for a minimum of 30 years. The committee recommends that casino floors occupy 5% or less of each resort’s overall footprint. Locals, or Thai residents, would face entry fees to gamble, but the Entertainment Complex Policy Committee has suggested such tolls not exceed 5,000 baht, or about $150. Las Vegas-based Wynn Resorts has publicly declared its interest in Thailand. Wynn remains bullish on foreign investment, as it continues to construct Wynn Al Marjan Island in the United Arab Emirates and is still heavily invested in Macau. |
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Post by Blitz on Sept 3, 2024 6:09:37 GMT -5
Thailand wants to entertain you By Daniel Cheng - September 3, 2024 agbrief.com/intel/deep-dive/03/09/2024/thailand-wants-to-entertain-you/The plot thickens…Thailand’s new draft casino bill straddles a thin line between economic heaven and a burning effigy. What a difference a month makes. It was all quiet on the Siamese front during the spring as the Thai Finance Ministry headed a multi-ministry effort to review the entertainment complex legislative plan, but the relative silence was then shattered by an August Avalanche. The month opened with the much-anticipated release of the draft entertainment complex bill for public comment. While this news boosted the casino industry, it was quickly overshadowed in the Thai media by the Constitutional Court’s dissolution of the largest political party in Parliament. Most gaming executives dismissed this political upheaval as peripheral news, failing to recognize its potential long-term implications for the industry. However, a week later, the same court escalated the crisis by dismissing Prime Minister Srettha Thavisin. This development prompted some industry analysts to express grave concerns about the future of casino legalization in Thailand, fearing that the effort might be abandoned altogether with his departure. Despair turned to relief when Paetongtarn Shinawatra was quickly appointed as the replacement, effectively preserving the casino legacy of her father, former Prime Minister Thaksin Shinawatra. The latter, though, was also under scrutiny by the courts a few days later when they scheduled a hearing for his alleged lèse-majesté offenses for July next year. The political shenanigans were not yet over for the month. The opportunity to appoint a new prime minister and Cabinet allowed the Pheu Thai Party to consolidate its power, reshuffle the coalition government, and remove the former junta party, Palang Pracharath (PPRP), which they blamed for causing the court troubles for Srettha and Thaksin. In a double blow to the PPRP, more than half of the party’s MPs defected to stay with the Pheu Thai coalition government. Paetongtarn’s appointment restored optimism among casino investors, as it secured Cabinet positions held by Pheu Thai members—including Julapun Amornvivat, Deputy Finance Minister and a key figure in entertainment complex legislation. Additionally, replacing the Palang Pracharath Party (PPRP) with the Democrat Party likely diminished significant opposition to the entertainment complex legislation. Emboldened by his daughter’s ascension, Thaksin delivered his first public speech, emphasizing that the new government must prioritize casino legislation. Following Thaksin’s forum, the flow of interest surged. While Japan’s private sector remained cautious about casino investments, Thai businesses exhibited no such hesitation. A veritable row of Thai billionaires quickly formed as major conglomerates lined up for the lucrative entertainment complex licenses. Each suitor boasted a place on Forbes’ prestigious list of Thailand’s richest people. Thaksin Shinawatra Notably, Thaksin’s dinner talk was held at Siam Paragon, the flagship mall of the Mall Group, led by matriarch Supaluck Umpujh, who Forbes ranked #13 among Thailand’s wealthiest. Local media reports state that the Mall Group plans to repurpose a $1.5 billion development currently underway in the Bang Na suburb of Bangkok to secure an entertainment complex license. Not stopping there, the Umpujh family is reportedly considering expanding an existing mixed-use real estate project in Phuket to include another entertainment complex in the island’s tourist hub. The U-Tapao Airport and Eastern Airport City Project, a crucial infrastructural hub in the Eastern Economic Corridor, has been widely speculated to be one of the first locations for a Thai entertainment complex. As part of a three-node high-speed rail line connecting U-Tapao, Don Mueang, and Suvarnabhumi Airports, the $8.5 billion Eastern Airport City mega development was awarded in 2020 to U-Tapao International Aviation Company (UTA) through a competitive bid. Major partners in the successful concessionaire include Bangkok Airways and BTS Group Holdings, which hold 45 percent and 35 percent stakes, respectively. UTA envisions incorporating an entertainment complex into the development. The BTS Group, led by billionaire Keeree Kanjanapas (#28 on Forbes), operates Bangkok’s Skytrain. Interestingly, Kanjanapas also has media interests through a joint venture with the Sansiri Group, which is owned by former Prime Minister Srettha. Bangkok Airways, the largest shareholder in UTA, is controlled by business magnate Prasert Prasarttong-Osoth, who holds a lofty #6 position on Forbes’ list. His family’s extensive holdings, including Thailand’s largest private hospital operator, BDMS, suggest the potential for a medical tourism-focused entertainment complex if UTA secures a license. Even closer to the Forbes summit are the Chearavanont brothers (#2), whose Charoen Pokphand (CP) Group encompasses a vast empire in food and telecommunications. Reports indicate that the group is eyeing an entertainment complex in the heart of Bangkok, at Makkasan within the Ratchathewi district. Makkasan will be a major station on the three-airport high-speed rail link, which the CP Group is constructing with the State Railway of Thailand as part of a $6.5 billion public-private partnership deal. As Japan’s experience shows, without stringent regulations, pretenders will emerge. My July op-eds on CNA and AGB highlighted Khlong Toei as a potential location for an entertainment complex. Now, the Royal Turf Club of Thailand, allegedly backed by the royal family, is proposing a $6 billion development in the area. The Royal Siam Haven is said to have already signed a memorandum of understanding with five foreign and four Thai partners. The Sirivadhanabhakdi family (#3 on Forbes), whose portfolio includes Chang Beer and Frasers Property, has distanced itself from the project after its Asset World Corporation (AWC) property arm was linked to it. AWC President Wallapa Traisorat—daughter of group patriarch Charoen Sirivadhanabhakdi—was quick to deny any involvement, stating that the casino business does not align with their development model. Let’s collectively pause and reflect as a hectic August comes to a close. As we look ahead, a new chapter may be unfolding: a whirlwind courtship between major international casino operators and the lineup of leading Thai conglomerates in search of their perfect match to snare one of the entertainment complex licenses. The Thai tycoons are seasoned in joint ventures and partnerships which contributed to their success far and beyond local shores. However, they will take heed and tread carefully with gaming companies that typically don’t play well with others in an industry known for many acrimonious and failed unions, with MGM Resorts and Hard Rock being among the few exceptions. While the release of the draft bill is a significant milestone, it’s important to remember that it’s just the beginning. Although the bill is a commendable effort, its 65 sections fall short of a comprehensive regulatory framework. To illustrate, Singapore’s Casino Control Act, with its 200 sections, provides a much more detailed and in-depth approach. Greater clarity will discourage additional unqualified applicants for the licenses that have hindered the process in Japan. The Thai government needs to seek industry subject-matter expertise to refine the entertainment complex framework moving forward. Singapore had engaged various industry consultants with deep knowledge in different disciplines in the enactment of its gaming law. It could make the difference between a robust new industry or a fire tinder house of cards. I’ll conclude this commentary as I began, with the lyrical prose of Robert Peter Williams: “Separate your right from wrongs. Come and sing a different song. The kettle’s on, so don’t be long.“ It’s in Thailand’s own hands to seize this opportunity and create something truly exceptional and successful. |
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Post by laupailee on Sept 3, 2024 7:01:09 GMT -5
Fascinating and dizzying read, transporting us through the dripping jungles of Thailand politics!
With heavy hand of the Shinawatra Family behind this, don't doubt for a minute that a casino business will eventually take off in Thailand, after all . . .
The only question is how the pie will get sliced . . .
LPL
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Post by laupailee on Sept 3, 2024 7:05:37 GMT -5
Also, this late paragraph made an incredibly important point.
Thailand needs to stay on top of this and not botch things as happened in Japan:
"While the release of the draft bill is a significant milestone, it’s important to remember that it’s just the beginning. Although the bill is a commendable effort, its 65 sections fall short of a comprehensive regulatory framework. To illustrate, Singapore’s Casino Control Act, with its 200 sections, provides a much more detailed and in-depth approach. Greater clarity will discourage additional unqualified applicants for the licenses that have hindered the process in Japan."
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Post by Blitz on Sept 5, 2024 8:09:30 GMT -5
Thailand’s casino plan receives 80% approval in recent public hearing Viviana Chan - September 5, 2024 agbrief.com/news/thailand/05/09/2024/thailands-casino-plan-receives-80-approval-in-recent-public-hearing/Thailand’s government is poised to advance its plan for entertainment complexes featuring casinos, following substantial support from a recent public hearing. Thailand Deputy Finance Minister Julapun Amornvivat Deputy Finance Minister Julapun Amornvivat announced on Thursday that 80 percent of attendees supported the proposed casino project. This public hearing was mandated by the constitution. According to the Bangkok Post, the hearing, organized by the Ministry of Finance, provided stakeholders an opportunity to discuss the draft bill for the entertainment complex. Julapun stated that feedback from the hearing would be used to refine the bill before it is submitted for further consideration. The revised bill will be presented to the cabinet for approval by coalition parties. If endorsed, it will proceed to the Council of State for review and then to the House of Representatives. This step is essential in the legislative process for legalizing entertainment complexes, including casinos, in Thailand. Currently, most forms of gambling are illegal in Thailand, except for state-controlled horse races and an official lottery. Despite this, underground betting remains prevalent. The proposed entertainment complex aims to address this by offering a regulated environment for gambling. A recent Finance Ministry study indicates that the planned casino is expected to attract a significant number of Thai gamblers, potentially up to 90 percent of its customers. Meanwhile, the study also suggests that up to 37 million Thai residents could potentially visit a casino. The Entertainment Complex Policy Committee, chaired by the Prime Minister, will set policies related to the management of the complex. According to the available information, companies seeking a concession for an entertainment complex must be either limited or public limited companies with registered capital of at least THB10 billion ($294 million). They must also obtain a license from the Entertainment Complex Policy Committee. The license will be valid for 30 years and may be renewed for up to 10 years at a time. The license fee is THB5 billion ($148 million), with an annual fee of THB1 billion ($29 million). The casino entrance fee for Thai citizens will not exceed THB5,000 ($148) per person, according to previous reports. Former Thailand Prime Minister, Thaksin Shinawatra Thaksin Shinawatra Several past administrations have attempted to legalize gambling to boost employment, state revenue, and tourism, but have faced resistance from conservative groups in the predominantly Buddhist country. The Pheu Thai Party, a key supporter of the plan, argues that Thailand has fallen behind its Southeast Asian neighbors in the gaming industry. Thaksin Shinawatra, a prominent figure and father of Prime Minister Paetongtarn Shinawatra, has been a major advocate for regulating and taxing online gambling. In a recent speech, he emphasized the potential economic benefits of formalizing the underground economy. |
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Post by Blitz on Sept 6, 2024 8:46:15 GMT -5
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Post by tumacau on Sept 13, 2024 2:26:00 GMT -5
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Post by Blitz on Sept 13, 2024 8:39:02 GMT -5
Thailand’s coalition party supports casino plan but warns of monopoly risks Viviana Chan - September 13, 2024 agbrief.com/news/thailand/13/09/2024/thailands-coalition-party-supports-casino-plan-but-warns-of-monopoly-risks/ ShareThailand’s prominent coalition party, Bhumjaithai, reiterated its support for Pheu Thai’s proposal to legalize casinos on Thursday but expressed concerns about the potential for monopolies to dominate the industry and capture most of the benefits. According to the Bangkok Post, while Bhumjaithai has consistently backed Pheu Thai’s vision for an entertainment complex, the party is wary of allowing just one or two companies to control the market. This concern was voiced by Korrawee Prissananantakul, an MP (member of Parliament) for Ang Thong Province. Korrawee Prissananantakul, member of the Thai Parliament During a joint session of the House of Representatives and the Senate discussing the government’s casino plan, Korrawee highlighted Bhumjaithai’s opposition to establishing such a complex in a small city, citing concerns about the potential for unfair income distribution. He stressed the importance of the government thoroughly assessing the advantages and disadvantages of casino legalization before proceeding. Previous reports indicated that the Thai government plans to develop three casinos in Bangkok and a total of seven integrated resorts across the country. Korrawee questioned whether it would be fair for Thai citizens if the government legalized casinos in exchange for concessions estimated at THB1 billion ($30 million) annually. He suggested that the government could consider investing in and operating the casinos itself to generate revenue and support the poor, thus benefiting all Thais rather than just a few investors. The Pheu Thai Party, a major Thai political party, recently saw Paetongtarn Shinawatra take on the role of Prime Minister. Under her leadership, a new 35-member cabinet has been approved. Of these positions, 17 are filled by members of the Pheu Thai Party, while the remaining 19 are assigned to its coalition partners. Former Thailand Prime Minister, Thaksin Shinawatra Former Prime Minister Thaksin Shinawatra, father of the current Prime Minister Paetongtarn Shinawatra and a key figure in Pheu Thai, previously stated that the entertainment complex project would require at least THB100 billion ($3 billion). He also noted that the government could benefit from the project without having to invest directly. Opposition People’s Party leader Natthaphong Ruengpanyawut argued that the government’s major initiatives, including casino legalization, digital wallet distribution, and the Land Bridge project, are likely to benefit private investors. Deputy Finance Minister Julapun Amornvivat noted that the casino plan has already attracted considerable interest from potential investors. With strong support from coalition parties and a favorable study by the Ministry of Finance, the project is now set to be proposed to the cabinet for approval. Additionally, in her inaugural policy address to Parliament on Thursday, Thailand’s Prime Minister Paetongtarn Shinawatra emphasized the government’s focus on financial stability and increasing revenue, including through the development of large-scale projects such as entertainment complexes. |
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Post by Blitz on Oct 23, 2024 7:34:22 GMT -5
Inside the heated debate over legalizing casinos in Thailand Frank Schuengel - October 23, 2024 agbrief.com/news/thailand/23/10/2024/inside-the-heated-debate-over-legalizing-casinos-in-thailand/In a key political twist, Newin Chidchob, a prominent figure in Thai politics, has firmly rejected Thaksin Shinawatra’s proposal to legalize casinos. The decision came to light following a private discussion between the two influential leaders earlier this month. This exchange has significant implications for the future of gambling legislation in Thailand, a country where gambling remains largely prohibited. Thaksin, the father of current Prime Minister Paetongtarn Shinawatra, has been advocating for the legalization of casinos as part of larger entertainment complexes. His vision includes the establishment of casino resorts in major tourist hubs like Bangkok, Phuket, and Pattaya. The proposed projects aim to draw international tourists and stimulate economic growth, offering a new avenue for revenue in Thailand’s already thriving tourism sector. However, despite Thaksin’s efforts to gain support, Newin has stood firm in his opposition to the plan. His primary concerns revolve around the potential social and economic risks that legalized casinos could bring, such as increased debt and addiction among Thai citizens. Newin’s position holds significant weight, given that his Bhumjaithai Party plays a crucial role within Thailand’s ruling coalition, which also includes Thaksin’s Pheu Thai Party. Interestingly, Newin’s opposition isn’t against the broader idea of developing entertainment complexes. He appears open to the concept of such projects, provided they exclude gambling activities. This difference in vision highlights a key point of contention between the two political figures, illustrating the delicate balance within Thailand’s current coalition government. Thaksin’s push for casinos comes amid scrutiny over his potential influence on his daughter’s administration. Critics argue that he may be wielding undue sway over the government and its coalition partners, potentially overstepping legal and political boundaries. These allegations have prompted investigations by Thailand’s Election Commission and the Constitutional Court, as reported by Thai Newsroom and Reuters. While Thaksin remains focused on ambitious economic ventures, including a joint Thai-Cambodian development in the Gulf of Thailand, the rejection of his casino initiative represents a major hurdle. The proposal, intended to be a cornerstone of Thailand’s tourism growth strategy, now faces significant resistance from within the coalition itself. As the situation unfolds, the rift between Newin and Thaksin over the casino plan could have broader implications for Thailand’s legal and economic landscape. The outcome of this debate will not only shape the future of gambling in Thailand but could also influence the dynamics of the coalition government and the country’s overall economic direction. For now, the spotlight remains on these political heavyweights as they navigate this contentious issue, with the potential for further developments to impact the Thai gambling industry and its regional connections. |
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Post by Blitz on Oct 31, 2024 6:56:21 GMT -5
Experts warn of risks as Thailand bets on casinos to revitalize economy Viviana Chan - October 30, 2024 agbrief.com/news/thailand/30/10/2024/experts-warn-of-risks-as-thailand-bets-on-casinos-to-revitalize-economy/Thailand is set to submit the Entertainment Complex Act to the Cabinet later this year, with parliamentary discussions anticipated in early 2025. However, experts caution that while these developments could bring potential benefits, they also carry significant risks. The proposal aims to revitalize the economy and boost the tourism sector. The government believes that introducing casinos will enhance tourism and create job opportunities for Thai citizens, ultimately fostering economic growth. Critics argue that casino gambling conflicts with traditional Buddhist values and could exacerbate organized crime. Casino biz can lift tourist spending by 52% in Thailand: study Julapun Amornvivat, the Deputy Finance Minister, noted that a public study on the potential opening of entertainment complexes has been completed, revealing that 82 percent of participants supported the initiative during public hearings. According to Voice of America, James Warren, a lecturer at Mahidol University International College, pointed out that the government has long sought to legalize casinos. He referenced previous proposals, including those made during Thaksin Shinawatra’s tenure as prime minister. Former Thailand Prime Minister, Thaksin Shinawatra Warren explained that proponents believe casinos could reduce corruption, diminish the underground economy, generate jobs, attract investment, and increase tax revenues. The latest proposal aligns with the Pheu Thai government’s goal of formalizing the underground economy. Currently, most forms of gambling are illegal in Thailand; however, illegal gambling dens persist, with authorities regularly conducting raids. Despite the ongoing crackdown, various administrations have expressed interest in establishing legal casinos. Thaksin Shinawatra’s recent speech outlined a plan to boost the economy, which included investments in entertainment complexes. Warren highlighted that the primary aim of the proposed casinos is to enhance tourism, particularly to attract Chinese visitors who contributed significantly to Thailand’s record 40 million tourists in 2019. Of that total, 11 million were from China. This year, more than 5.2 million Chinese visitors have already come to Thailand, with projections suggesting a total of 8 million by year-end. Enhancing tourism appeal Tourism analyst Gary Bowerman emphasized that Thailand’s casino initiative is part of a broader strategy to enhance its tourism appeal. He noted that integrated resorts can diversify visitor experiences by blending luxury accommodations, entertainment, dining, shopping, and lifestyle elements—all financed by casino revenues. Given Thailand’s larger geographical size compared to its regional competitors, officials aim to distribute these resorts across key destinations, including Bangkok, Chiang Mai, and Phuket. Tourism is crucial for Thailand’s economy, especially as growth forecasts remain modest at 2.4 percent for 2024, according to the World Bank. The government is targeting 36 million visitors this year, with ambitions to reach 40 million by 2025. However, there are concerns that casinos could lead to increased criminal activity, particularly given the proliferation of casinos in neighboring countries like Cambodia, Laos, Myanmar, and the Philippines. The UN Office on Drugs and Crime has reported that casinos in the region can facilitate cyber fraud, which is already a significant issue in Southeast Asia, leading to billions lost to online scams. Experts worry that Thailand could experience similar challenges. Warren noted that past criticisms of casino proposals during Thaksin’s administration highlighted concerns over gambling’s compatibility with Buddhist principles, as well as fears of encouraging problem gambling and associated crimes. Political headwind Newin Chidchob, a prominent figure in Thai politics, has firmly rejected Thaksin Shinawatra’s proposal to legalize casinos. Newin has stood firm in his opposition, primarily concerned about the potential social and economic risks that legalized casinos could bring, such as increased debt and addiction among Thai citizens. Newin’s opposition isn’t against the broader idea of developing entertainment complexes. He appears open to the concept of such projects, provided they exclude gambling activities. |
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