Published on: November 14, 2024, 02:50h.
Last updated on: November 14, 2024, 02:50h.
When Thailand’s casino market reaches maturity, it has the potential to surpass Singapore in annual gross gaming revenue (GGR) and become the third-largest gaming jurisdiction globally.
According to a report by Citi analysts George Choi, Preenapa Detchsri, and Timothy Chau, Thailand could achieve annual GGR of $9.1 billion once its casino market is fully operational. This would propel the country ahead of Singapore to claim the third spot globally, behind Macau and Las Vegas. While Thailand has not yet formally approved integrated resorts, efforts are being made to fast-track related legislation.
Deputy Finance Minister Julapun Amornvivat recently reiterated the Thai government’s intention to present a revised draft law to the cabinet by the end of 2024. Once the bill is approved by the council of state, the competition for licenses in Thailand is expected to commence quickly,” as stated by Citi.
The $9.1 billion GGR forecast is based on Thailand issuing at least five gaming permits initially – two in Bangkok and one each in Pattaya, Phuket, and Chiang Mai.
Singapore/Thailand Comparison
If Thailand achieves or exceeds the Citi forecast to become the third-largest global casino market, it would be a significant achievement considering the country currently lacks regulated gaming venues.
However, comparing Thailand to Singapore may not be entirely accurate. Singapore is home to only two integrated resorts with long-term duopoly protection, and there are no plans to expand the number of properties in the near future.
Given that Singapore is content with two gaming properties, Thailand could surpass Singapore in GGR terms simply by having more casinos if it starts its gaming sector with four or five venues.
Singapore recorded $5.11 billion in GGR in 2023, its best year since the pandemic began. Marina Bay Sands and Resorts World Sentosa are among the most profitable integrated resorts globally.
Thailand’s Casino Market Potential
Thailand presents an attractive market for operators due to limited growth opportunities in the global gaming industry. The country’s strong tourism industry and proposed regulations aimed at attracting major gaming companies contribute to its appeal.
Analysts believe that Thailand’s commitment to efficiency mirrors Singapore’s approach two decades ago, suggesting that the first casino hotels in Thailand could open in five to six years. The planned gaming tax rate of 17% is viewed favorably for operators’ profitability.
“With a lower gaming tax rate of 17% and lower operating expenses compared to Singapore, industry EBITDA could reach approximately $4.1 billion annually,” the Citi analysts added.