30 October, 2024 | NOV DEC 2024

New Horizons Cover Feature: Thailand

Thailand’s interest in a fully regulated gambling market seems to be growing each day. Gambling Insider looks at why the nation could be positioned to become a major player in the Asian gaming landscape

A nation that prides itself on hospitality, Thailand is – as of 2024 – the eighth-most popular tourist destination in the world. Pristine beaches in the south, temperate rainforests in the mountainous North, mouth-watering cuisine everywhere and, quite possibly, a plethora of new casinos on the horizon.

Support is growing across the nation for regulated casinos following the release of the first draft of the Casino Bill for public review. The bill has been backed by both the ex-PM and current Deputy PM, with some of the continent’s biggest fish now seemingly trailing the boat. In July, four of Macau’s big six expressed interest in Thailand, MGM China, Galaxy, Sands and Wynn Resorts. Previous reports have indicated that MGM Resorts and Galaxy Entertainment Group are both exploring the possibility of opening casino resorts in Thailand – with Genting also said to be keeping a close eye on developments.

Despite the undeniable interest, current Deputy PM Anutin Charnvirakul and the Bhumjaithai Party have been resolute in their opposition to fully legalising gambling in Thailand. Charnvirakul emphasised that his support for the casino bill was conditional to whether the legislation implemented would align with Thailand’s legal and moral standards – and that it must provide a positive contribution to the economy. Evidently, the Government is taking its time with the decision. However, the progress is palpable and all the right sounds are being made.

The proposed regulations laid out in the Casino Bill draft would allow casinos an initial 30-year licence with a renewal option of an additional 10 years. As per the bill, casinos must be housed in large entertainment complexes and there will be a 17% tax on gaming revenue. Licences will cost operators 5bn Thai bhat ($141.9m) on top of the 100,000 bhat application fee.

Although it appears the Thai Government is opting for a slow and steady approach, the big question is how well Thailand is actually positioned to ease its way into a regulated gambling market? The answer is rather well. Thailand is surrounded by a number of established markets – including Singapore, the Philippines and Macau – from which it can learn, not only from their successes, but their mistakes. Something the Thai Government would no doubt like to avoid should it come to regulate online games is offshore gaming operators, following the debacle faced by the Philippine Government this year with POGOs (Philippines Offshore Gaming Operator).

Interestingly, drawing comparisons between Thailand’s would-be market and the previously mentioned markets of Macau, Singapore and the Philippines sparks an intriguing discourse. Something the nation has over all three of the aforementioned regions is a highly culturally and infrastructurally developed, diverse and thriving tourism industry. It is well documented that Asia’s main gambling powerhouse of Macau is scrambling to achieve exactly that of which Thailand already possesses: diversity.

Projected inbound tourism figures for Thailand in 2024 are set to hit 36.1 million travellers. Moreover, Thailand’s geographical location in the heart of the Southeast region of the Asian continent places it within semi-reasonable travelling distance for visitors from both Australasia and Europe. This fact is accentuated by the 554,000 foreign tourist arrivals to Thailand in 2024 so far from the UK alone. This foot traffic is achieved without the additional allure of regulated casino resorts, which would no doubt appeal to a large number of the local population and inbound tourists from across the globe. In fact, a study cited by The Economist suggests that regulated Thai casinos could elevate tourist spending by as much as 52%.

While the when of the matter is a question only the Government can answer, the where is something worth speculating. One of Thailand’s many crown jewels is, of course, Bangkok – the second-most populous city in Southeast Asia. The sprawling metropolis is recognised worldwide for its party culture; could it therefore make an ideal location for the sprinkling of a few integrated casino resorts into the mix? The nation’s largest island of Phuket is another viable and attractive option when it comes to development. Arguably the number-one spot for travelling tourists, Phuket offers the nightlife to rival Bangkok with the addition of pristine beaches. Finally, there is the outlier of Pattaya, which lies five hours from the Cambodian border. Historically recognised touristically, the coastal city sees a consistent influx of Russian and Chinese tourists year-round – and could be well placed to tempt Cambodian nationals looking for a luxury casino resort experience across the border.

Evidently, there is a lot at play – and the unfurling path towards regulation leaves plenty to be decided. However, if Thailand’s cautious approach eventually leads towards a stable regulated market, Asia could be looking at a new and very serious player on the horizon.