The newly installed Thai government is pushing for the development of as many as seven casino hotels to kickstart the country’s regulated gaming industry, with up to three of these venues slated for the capital city of Bangkok.
Recent media reports indicate that Prime Minister Paetongtarn Shinawatra is set to present a casino policy statement to parliament imminently. This proposal is expected to outline the establishment of up to seven gaming venues, marking Thailand’s first foray into regulated gaming.
If the plan for the seven integrated resorts, including three in Bangkok, comes to fruition, it would exceed earlier projections. Previously, it was rumored that Thai policymakers might approve five casino hotels, with two in Bangkok and one each in the Eastern Economic Corridor, Chiang Mai, and Phuket.
A recent article in The Nation revealed insights from Deputy Secretary-General to the Prime Minister, Suksit Srichomkwan, suggesting that the Thai cabinet is considering legislation that would allow for three integrated resorts in Bangkok. The proposed law reportedly requires each winning bidder for a Bangkok casino license to pay a $3 billion licensing fee, potentially generating $9 billion in new revenue for the government. This fee is notably lower than the cost of developing a new casino hotel on the Las Vegas Strip and significantly less expensive than some planned projects in New York.
Given the expected long-term return on investment, which typically ranges from the high teens to the low 20s percentage-wise in the gaming industry, the $3 billion licensing fee is likely to attract several global gaming giants. US-based companies such as Las Vegas Sands, MGM Resorts International, and Wynn Resorts, all of which have shown interest in Thailand, may find this opportunity particularly appealing.
The legislative package also includes specific guidelines, stipulating that casinos should cover no more than 10% of the total square footage of an integrated resort. Additionally, casino licenses for venues outside of Bangkok would carry an initial fee of $1.5 billion.
The Thai government’s strategy to permit casino resorts in Bangkok holds broader significance. Bangkok’s status as the most populous city in Thailand makes it a lucrative location for operators. Moreover, this approach contrasts with the challenges faced by gaming companies in Japan several years ago. Operators such as Sands and Wynn had hoped to secure permits for integrated resorts in Tokyo and Yokohama, Japan’s two largest cities. However, they eventually abandoned these aspirations due to resistance from those cities.
Thai lawmakers supporting the country’s casino initiative aim to expedite the legislative process, with hopes that Thailand’s first gaming venues will open ahead of MGM Osaka, which is scheduled to debut in 2030.
