Thailand sees Philippines gambling billions, Singapores resorts and rolls the dice on casinos in hopes of cashing in – South China Morning Post

That appears certain to change, however, as the Thai government wagers on legalised casinos to bring in a windfall of tourism, jobs and taxes. Prime Minister Srettha Thavisin is in a hurry to get the legislation moving, aware that it will take up to five years to carve out regulations, approve bids and then build the integrated resorts with their hotels, concert halls, conference centres and licensed gaming areas. Thailands Prime Minister Srettha Thavisin wants to get the ball rolling on legalising casinos. Photo: AP

We do not want to promote gambling, but would rather supervise it and use the investment to create jobs, Srettha wrote on social media platform X on March 29. We can regulate the grey economy and collect taxes.

Late last month, Thailands lower house overwhelmingly approved a study recommending the development of entertainment complexes with casinos at their heart to be funded and built by private capital, and regulated with revenues taxed at around 17 per cent.

The casino plan was endorsed on Tuesday by the cabinet, paving the way for legislation to be formally introduced to parliament for a full debate.

Sretthas administration has prescribed a stiff cocktail of state spending and foreign investment to perk up a sickly growth rate thats forecast by the World Bank to barely touch 2.8 per cent this year far behind Thailands regional rivals.

Thai officials speculate casinos could eventually boost gross domestic product by 2 per cent annually, with industry insiders predicting that the gaming sector may rake in US$5 billion a year by the end of the decade, on the back of the kingdoms healthy tourist numbers.

Its early days, said Samuel Yin, an analyst at Maybank Investment Banking Group, but the signs are promising, as the opening of an entirely new market for gambling is a once in a decade event.

Thailands recent moves have already caught the attention of the big integrated-resort players, including Las Vegas Sands Corp., operator of Singapores Marina Bay, MGM and Asias biggest casino operator, Genting.

During a January earnings call, Las Vegas Sands Chairman and CEO Robert Goldstein said Thailand was firmly on the companys radar, enthusing: wed love to have a presence [there] in the future.

But others are hedging their bets, unsure of whether the big casino push will really be the ace in the hole that Thailands government expects.

Any revamp of the Buddhist kingdoms Gambling Act must carefully appease a health lobby concerned about addiction rates; religious conservatives worried about breaches of morality; and clean-government advocates who are sceptical about who will ultimately harvest the bounty of a new multibillion-dollar market in Thailands top-down economy.

Some politicians say we should have one or two casinos only, some say for foreigners only, said Taopiphop Limjittrakorn, a lawmaker for the opposition Move Forward Party and a former member of the committee examining the gambling laws.

His party says the key is liberalising completely, with clear guardrails to protect minors and rehabilitate addicts, so that new legal revenues can be made across the country.

If you have strict rule of law, if you enforce the law and minimise the social problems, I think we should deregulate fully [and] not let the gambling industry become another monopoly, he said.

With Thailands first legal casino unlikely to open before 2028, Somporn still has a long wait before she is able to make her first lawful bet in a lifetime of gambling and shes not alone.

At her level, the stakes are small. Somporn says she usually bets less than 200 baht (US$5) a day teased by the prospect of winning up to 100 times that amount.

Prime Minister Srettha says it is time to turn Thailands predilection for gambling into an asset rather than a criminal slush fund.

We want to get rid of the influential people who come with this illegal business and bring the income to develop the country, he said on X.

Getting the regulations right and then properly enforcing them is the real challenge, observers say.

Its exciting because Thailand is already Southeast Asias tourism juggernaut, said Maybank IB analyst Yin, of a country expecting 40 million visitors this year.

But the prime minister has to spend his political capital properly will Thailand try to employ the junket model which supercharged Macaus growth but led to a lot of money laundering, or will there be a local Thai entry levy similar to that in Singapore?

Singapore is the regional gold standard for new casino markets, pulling in billions of dollars in gaming revenue since launching in 2010. It enforces strict entry rules: gamblers must be over 21 and any Singaporean or person with permanent residency has to pay S$150 (US$111) per 24 hours to play.

It also operates an exclusion policy for problem gamblers, which can be activated by concerned family members or the casinos themselves.

Both of the city states casinos are spending heavily on upgrades to their non-gaming offerings, as Asias post-pandemic tourism rebound looks set to continue throughout 2024.

Marina Bay Sands plans to add a new 15,000-seat entertainment arena, additional conference spaces and a brand new luxury all-suite hotel tower with a public rooftop.

Just a stones throw away is the Resorts World Sentosa, which will also be getting a makeover, with a new Minion Park and Super Nintendo World at the Universal Studios Singapore and an expanded aquarium called the Singapore Oceanarium.

Marina Bay Sands casino revenue surged to US$741 million in the fourth quarter of last year, up 84.3 per cent year on year, figures released in January by parent company Las Vegas Sands show.

Thanks to it already being one of Asias top tourist draws, Thailands entry into the regional casino market is likely to force its competitors to up their game.

Gentings Resorts World Sentosa and NagaCorps Naga 1 and 2 in Cambodias Phnom Penh will be the most exposed to Thailand entering the market, according to a Maybank IB briefing note, as all three rely heavily on overseas customers.

The Philippines, which is expanding its casino offerings amid a strong recovery in tourist numbers, could also see its gaming revenues nibbled and eventually gnawed into by Thailand, with its better air and land connections to the rest of Asia.

For all the buzz around Thai casinos, Singaporean housewife Rebecca Lim*, 61, said she thought they were unlikely to woo many casual gamblers from the city state.

I dont think Singaporeans would specially make the trip to a casino when theyre in Bangkok since there are so many options here, she said.

Only time will tell, but Maybank IBs Yin said it was possible Southeast Asias gambling market could simply grow to accommodate new players without necessarily crushing the older ones.

When Singapore, just over the border from Malaysia, opened its Marina Bay Sands resort, everybody said Malaysian gaming is doomed he said. But it wasnt.

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Intense speculation about Malaysias gaming sector erupted in late February after news broke that two of the three casinos at the Resorts World Genting hillside holiday destination in Pahang state had shut.

The company later clarified that the closures were temporary as part of efforts to improve our operational efficiency and enhance the gaming and entertainment experience for guests.

It did not say how long the renovations would take, but banking analysts expect the two casinos to be back in action by next year.

News of the Thai governments plans to approve casino licences has whipped up much excitement across the countrys southern neighbour, many of whose avid gamblers can frequently be found on the Mekongs gaming floors.

Another solid reason to visit, wrote Facebook user Simon Khoo in a comment about Thailands casino plans. We are OTW, said Allistair Tan, using the acronym for on the way and suggesting that Thailand build casinos in Hat Yai and Betong, a short hop from the border with Muslim-majority Malaysia.

Tourism operators, gamblers and government revenue departments across Southeast Asia are all poised to benefit from Thailands plans, but none so much as the big hitters in the casino world and their Thai partners who stand to become the gatekeepers to billions of dollars in gambling revenue annually.

Much work remains to be done, Fredric Gushin, CEO of global consultancy Spectrum Gaming Group, told This Week in Asia. [But] the recent expansion of gaming by the two IRs [integrated resorts] in Singapore and the expansion of gaming in the Philippines, along with legalisation of gaming in Thailand, promise to offer tourists and gamers increasing opportunities in an increasingly competitive market throughout Southeast Asia.

Thailands existing gambling laws date back to 1935 and ban all but state-sanctioned forms of betting.

But critics say legislation that is routinely flouted has lost the country untold billions in taxes, while allowing nefarious figures to build criminal empires on illegal bookmaking.

The internet has revolutionised access and the ease with which people can gamble, making most of what is on Thailands statute books obsolete and in need of a thorough revision.

At the same time, Prime Minister Srettha is looking to open up those parts of the economy that have long atrophied through a lack of competition or because of old laws.

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The dark world of Asias online casino industry

The dark world of Asias online casino industry

His governments new gambling bill has received bipartisan support in the lower house, as well as industry approval so far.

It recommends a competitive tax regime and a basic framework for legalised casino gaming, said Spectrum Gaming Groups Gushin. The next step would be to formulate a gaming law and standards for operation [that] should attract considerable international interest on the part of gaming operators, investors and the financial community.

Thailands first gaming licences are expected to go to a handful of global companies with the clout to build and run vast entertainment complexes with casinos at their heart.

They are likely to be joint ventures between foreign companies and local Thai partners, holding 20-year licences that are renewable every five to give the government some leverage. As in Singapore, Thais are expected to face an unspecified levy to enter and be subject to bans if bad behaviour or gambling addiction is reported.

Assuming two years to finalise a regulatory framework and three years to construct, the first EC [entertainment complex] may only open in 2029, Maybank IB said in its briefing note.

For gamblers, the new law will simplify a Thai passion that millions already partake of every day. Football punter Nattawut rejects the idea that a new wave of addicts will emerge if casinos open in Thailand for a simple reason: people are gambling anyway, online or on the street.

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Nattawut, who only gave one name, places bets on European football games with a local motorcycle taxi rank who works for a bookmaker in suburban Bangkok a chain of illegal gambling thats so common in small communities across the country that he says its almost mundane.

We know where the opposition to changing the law comes from, he said. It is from those who stand to lose the most.

*Name changed at interviewees request

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Thailand sees Philippines gambling billions, Singapores resorts and rolls the dice on casinos in hopes of cashing in - South China Morning Post