Key points:
- MGM calls for tax rate aligned with Singapore’s 17% to attract foreign investment
- Local access to casinos seen as essential for sustainable operations
- Bangkok identified as ideal site due to infrastructure and tourism appeal
MGM Resorts International has called on Thai authorities to adopt a competitive tax regime and allow domestic access to casinos as part of the country’s proposed integrated resort model. As reported by the Bangkok Post, the global operator is exploring the possibility of investing between $3bn and $5bn in a facility located in Bangkok.
Ed Bowers, President of Global Development at MGM Resorts, said that new markets need to offer favourable conditions to compete with established destinations in Asia. He pointed to Singapore’s 17% casino tax as a benchmark and warned against policies that would prevent local residents from entering casinos.
Good to know: South Korea prohibits locals from gambling in most casinos. MGM has cited this as a reason for underperformance at resorts reliant solely on foreign visitors.
Bowers added that governments must understand the business fundamentals of the casino industry when drafting regulations. He suggested that prohibitive tax rates or excessive restrictions on access could deter serious operators from entering the market.
He also supported Thailand’s plan to cap the casino area at 10% of the total resort space, in line with global norms. In Singapore, casino zones are below 5% of resort area, while Japan sets the limit at 3%.
MGM prefers sites with strong tourism infrastructure, international connectivity and a large domestic population. Bowers said Bangkok meets these criteria and could accommodate one large-scale resort, or potentially two if facilities remain modest in scale.
He also argued that legalised, regulated casinos could support public welfare through education and treatment programmes funded by gaming taxes while generating employment in the local economy.
