Singapore and Macao have already done it, and now Thailand is considering building casinos to attract more tourist dollars.

• By the end of the decade, Thailand could surpass Macao and Singapore as their largest competitor if a law is passed, according to industry watchers.
• Maybank research predicts that Thailand's casinos could generate 187 billion Thai baht ($5 billion) in revenues, which is equivalent to 1% of the country's GDP, once they are launched.
• Currently, gambling is illegal in Thailand except for state lottery and licensed horse betting.

The country of Thailand is currently developing a new strategy to attract more foreign visitors and increase tourism expenditure through the establishment of casinos.

Macao and Singapore, both with successful 14-year-old casinos, have demonstrated that the strategy has been effective.

If Thailand's draft bill is passed into law, the country could become Macao and Singapore's largest competitor by the end of the decade, according to industry watchers.

According to Ben Lee, managing partner of IGamiX Management and Consulting, if Thailand successfully implements casino development, it could enhance its appeal as a tourist destination, similar to the impact of building casinos in Singapore and the gaming dollar in Macau.

The economy of Thailand relies heavily on tourism, but its growth remains slow. Despite the decrease in tourist arrivals due to the Covid-19 pandemic, a full recovery is unlikely until Chinese travelers resume their trips in large numbers.

In 2023, Southeast Asia's second-largest economy received approximately 28 million foreign tourists, significantly lower than the 40 million tourists in 2019.

Lee stated that Thailand, despite being a popular tourist destination, is still facing economic challenges due to the pandemic.

In June, the former Thai Prime Minister Srettha Thavisin commissioned the creation of a bill to legalize entertainment complexes in the country, which could potentially increase tourism spending, create more job opportunities, and revive the economy.

Currently, gambling is illegal in Thailand except for state lottery and licensed horse betting.

Despite his daughter, Paetongtarn Shinawatra, being Thailand's new prime minister, experts predict that the bill will still be implemented.

Yin Shao Yang, a Maybank Investment Bank analyst, stated that despite Thailand's political instability, it is unlikely to impede the progress of plans to construct casinos.

If the law is passed, Thailand's casinos could generate 187 billion Thai baht ($5.5 billion) in revenues, which is 1% of the country's GDP, according to Maybank research.

The finance ministry stated that the Thai economy is projected to grow 2.7% in 2024, following a 1.9% increase in 2023.

Gary Bowerman, director of Check-in Asia, stated that tourism in Southeast Asia is competitive, and countries in the region are considering ways to establish tourism as a key driver of economic diversification.

Bowerman stated that legalizing casinos will enhance Thailand's future position, as its tourism industry is already substantial and attracts numerous visitors.

What to expect

What are the most frequently asked questions by industry observers regarding the potential locations of casinos in Thailand?

It is predicted by analysts that the proposed locations for the government may not be in the central area of Bangkok.

"Bangkok is already fully developed, and there is no need for any further development. I can't fathom the possibility of any remaining undeveloped land in Bangkok," Maybank's Yin stated.

Casinos will be constructed in less populated regions, including along Thailand's Eastern Economic Corridor, specifically in Rayong, Chonburi, and Chachoengsao.

Unlike Macau's model, where there are numerous casinos concentrated in a small area like Vegas, Allan Zeman, chairman of Lan Kwai Fong Group, expressed his doubts about the success of Thailand's future casinos.

"While many governments believe that casinos can aid development in underdeveloped areas, having just one casino in a developing city may not have the same effect."

Maybank's Yin stated that other popular tourist destinations, such as Phuket, Krabi, Chiang Mai, and Pattaya, are likely to have casinos in the future.

Yin stated that the government aims to maximize capital expenditure on the Pattaya project, with an anticipated budget of $5 billion.

The U-Tapao Rayong Pattaya International Airport announced in March that it plans to construct a second runway in order to increase its capacity for tourists flying to Pattaya, according to local media reports.

Asia's Bowerman stated that Thailand is likely to adopt Singapore's approach of constructing an integrated resort that offers activities for non-gamblers in addition to gambling options.

"Marina Bay Sands offers a range of attractions for young people who don't gamble, including a fabulous bar, infinity pool, hotels, museums, and restaurants."

The Entertainment Complex Act published by Bangkok Post in August revealed that Thai citizens must pay a 5,000 Thai Baht ($147) entrance fee to enter casinos in their country, while locals in Singapore have to pay 150 Singapore dollars ($115) to enter. However, foreigners will reportedly be admitted for free.

In addition to obtaining a valid license to operate for up to 30 years, casinos must also pay $5 billion baht to register and an annual $1 billion baht payment.

The Thai government may require U.S. operators to collaborate with Thai companies if they wish to enter the country's gambling industry, according to Bowerman.

Local interest and Thai companies will want to be involved, he stated.

Will Macao remain No.1?

If Thailand establishes five to eight casinos nationwide, it may surpass Singapore's market popularity and revenue in the future, according to casino experts.

But Macao's casinos will still remain top, they say.

The two casinos in Singapore generated $2.53 billion in revenue in the first half of the year, while casinos in Macao earned $114 billion Macanese Pataca ($14.16 billion), according to operators' earnings statements.

According to IGamiX's Lee, if Thailand casinos are managed properly, they have the potential to surpass every other gaming jurisdiction in Asia, except for Macao.

Thailand, beginning with a clean slate, will undoubtedly draw in substantial American investors, as Bowerman concurred with his remarks.

The casino industry is highly profitable and will generate substantial revenues, including tax revenues, to support various aspects of tourism, as stated by him to CNBC.