The potential legalization of integrated resorts (IRs) in Bangkok, Thailand, is currently under debate by the government, with analysts from JP Morgan estimating that three casinos in the capital city could generate up to $5bn in revenue annually. The report suggests that even with only a couple of licenses permitted, a minimum of $2.5bn could be generated, with gaming floors expected to account for at least 90% of total revenue.
Despite offering various entertainment options, analysts believe that more than half of the revenue would come from overseas tourists, attracted by Bangkok’s status as one of the most visited cities in Southeast Asia. The report compared Bangkok to markets like Macau, Singapore, the Philippines, and South Korea, highlighting similarities and differences that could impact the potential revenue from IRs.
While Singapore serves as a good model for Bangkok, analysts noted differences in wealth and income levels, as well as the diverse range of tourist attractions in Thailand that could affect the success of IRs. The ongoing debate in parliament regarding the legalization bill includes proposals for gaming areas to be limited to 5% of the complex’s space, with licenses valid for 30 years and proposed locations in Bangkok and other areas like the Eastern Economic Corridor, Phuket, and Chiang Mai.
Global casino companies like MGM Resorts International, Wynn Resorts, and Caesars Entertainment have shown interest in the potential Thailand IR market. Currently, the only forms of legal gambling in Thailand are horse racing betting and the state lottery, making the debate around the legalization of IRs a significant topic of discussion among lawmakers.
Differing views among government officials include Prime Minister Korrawee Prissanantakul’s belief that the government should operate the casinos for maximum benefit, while Minister of Finance Julapan Amornvivat argues for experts to run these properties. The outcome of the debate and potential legalization of IRs in Bangkok could have a significant impact on the country’s tourism and revenue streams in the future.