Thailand has been at a crossroads on whether or not to legalize gambling for a long time, weighing and re-weighing the benefits and downsides. In a recent move, Galaxy and MGM, two international casino heavyweights, have tipped the scales in favor of legalization by setting up local offices in the country. The extraordinary step is prompted by the next administration’s desire to legalize sports betting and other gambling operations. The leading Thai online casinos are already capitalizing on the potentially lucrative sector in the thriving Southeast Asian economy.
Opening Gambling Offices Before Full Legalization
Gambling is very popular in Thailand; however, it is a predominantly Buddhist country with a strong anti-gambling mentality. The country’s constitution severely restricts gambling to government-approved activities. The Gambling Act of 1935 in Thailand forbids most types of betting, except a few state-authorized gambling enterprises. However, the tide is changing regarding gambling for tourism, as the Thai Parliament has already approved an initial plan for Casino-Integrated Resorts.
With gambling being prohibited, Galaxy Entertainment Group Ltd. and MGM Resorts International are eyeing the potential casino market and acquiring corporate properties. However, neither has yet to offer casino services in Thailand. Instead, they are on a wild adventure in Thailand to mark territory and create camps. The initiative is largely motivated by the necessity to investigate the profitability of potential casino markets in Thailand. According to reputable sources, the casino companies are looking at the casino markets in Thailand and the United Arab Emirates, which appear to be rewarding for investment and are inclining toward legalization.
Macau’s Hand In the Matter
Galaxy Entertainment Group Ltd. and MGM Resorts International have recently explored business opportunities in Thailand due to concerns about the future business landscape in Macau. Macau faces regulatory challenges, with China considering restrictions on gambling in the region. The Chinese government has been investigating money laundering activities in Macau and keeping a watchful eye on its gaming sector. After China’s recent reopening following a decline in COVID-19 cases, Macau saw a notable increase in gambling revenue.
Several indicators suggest that Macau’s casino economy may face challenges in the near future. If this happens, it could take time for Macau to reestablish its reputation as a premier casino destination. Notably, many high-end gamblers are exploring other options. Historically, these high rollers contributed to a significant portion of Macau casinos’ revenue. Given these circumstances, the two corporations are considering other potentially profitable markets. With its plans to legalize gaming and the possibility of integrated resorts, Thailand seems a promising alternative.
Thailand’s Lucrative Gaming Industry
Thailand presents a significant opportunity for casino businesses, and opening offices could be a strategic move to tap into a promising market. Currently, casino activities are limited, but both casino operators are hopeful that Thailand may revise its stance on casinos in the near future. In the previous legislative session, there was agreement from both the ruling and opposition parties regarding the development of integrated resorts in Thailand. Moreover, the upcoming administration seems inclined towards enacting a law that would permit the establishment of casino resorts in select locations.
The interest of casino operators in Thailand isn’t solely based on the potential for new integrated resorts. Thailand’s status as a major tourist destination is also a factor. The country attracts visitors worldwide, especially from other Asian nations, eager to experience its natural beauty and popular tourist sites. Before the COVID-19 pandemic, Thailand saw many tourists from China, Malaysia, and India. Given its strong tourism sector, Thailand could, in time, rival countries like Singapore in gaming revenue. Both MGM and Galaxy recognize the potential benefits of this scenario. MGM has even proactively engaged with a Thai parliamentary committee discussing casino regulations.
Final Thoughts
MGM and Galaxy appear certain that Thailand will be one of their next investment targets. They have already established offices in the country to prepare for their entry. While the two are titans in the casino industry, their international clout does not ensure Thailand’s approval. On the other hand, their rush for Thailand is informed by decades of experience. Furthermore, their actions, such as courting the country’s entry points, indicate a high possibility of success. While only time will tell, the two casino enterprises are expected to thrive in Thailand.