Thailand’s big casino gamble hangs on fine print of regulations
BANGKOK — Thailand is setting its sights on becoming a global gaming hub, with plans to build a casino industry that generates billions in revenue, draws some of the biggest names in the business and benefits a thriving tourism sector.
But experts warn success will come only by playing its cards right on regulation, an area in which Southeast Asia’s second-largest economy has a patchy record, such as its botched efforts to legalize cannabis in 2022.
“They want a transparent process that will protect their investment with appropriate regulation,” said Fredric Gushin of Spectrum Gaming Group, which helped Singapore build its casino industry into the world’s No. 3, after Macau and Las Vegas.
“This is a once-in-a-generation opportunity,” he said
By some estimates, Thailand has the potential to eclipse Singapore’s glitzy casinos, in part by luring heavy hitters such as Las Vegas Sands Corp, MGM Resorts International and Galaxy Entertainment.
None of the companies responded to emails from Reuters seeking comment.
To draw the big names, Thai authorities will have to combat perceptions of favoring big domestic players, adopt an open and competitive development process, and strike a delicate balancing act with domestic punters, two consultants said.
Last month, the cabinet approved a draft law to legalize gambling in so-called entertainment complexes as a way of boosting the economy at a time when gross domestic product is expected to expand less than 2.9 percent this year, lower than previous estimates.
Reuters has reviewed the latest draft of the legislation, not yet made public, which envisages a new commission to regulate gaming and coordinate with investors in setting up such complexes.
“We estimate Thailand’s gross gaming revenue could reach $9.1 billion when fully ramped,” Citi said in a research report in November. “This will rank Thailand ahead of Singapore.”
Nestled in resorts offering a range of entertainment, Singapore’s casinos were part of the city-state’s fastest-growing tourist receipts category in 2024.
Thailand’s potential as a gaming destination, with casinos proposed in the capital Bangkok, on the holiday island of Phuket, and three other sites, is underpinned by its role as a regional magnet for tourism.
Thailand saw 35.55 million foreign tourists arrive in 2024, up 26.27 percent on the year, nearing its pre-pandemic record of 39.9 million in 2019 that helped generate 1.91 trillion baht ($56 billion) in revenue.
Experts also see the propensity of Thais to gamble as an attraction for casinos, but household debt levels that are among the highest in Asia, demand robust government safeguards.
Thailand currently allows gambling in state-controlled horse racing, the lottery and betting on some sports, such as boxing.
