Thailand's Gaming Industry Set for Rapid Growth and Global Prominence

According to projections by Citigroup, Thailand is on the verge of becoming a significant force in the global gaming landscape. The analysis, put together by Preenapa Detchsri and George Choi, predicts that, once fully developed, the Thai gaming market will achieve staggering revenue heights to compete with premier revenue-generating markets.

The Citigroup report forecasts that Thailand will surpass Singapore to become the third-largest gaming market globally in terms of Gross Gaming Revenue (GGR). The market will likely generate about $9.1 billion in GGR, second and third only to Macau and Las Vegas.

Positive Financial Projections

From a profitability perspective, Thailand has a competitive edge over thriving markets like Singapore. The Citigroup report highlights, "With a lower gaming tax rate of 17% and reduced operational expenses, mainly in wagers and utilities, we believe EBITDA margins could reach 40% to 50%." These favorable conditions could see the region's gaming sector generate an impressive EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of approximately $4.1 billion once fully ramped up.

Such impressive financial projections are centered on the Thai government's strategic distribution of licenses – two will be issued in Bangkok and one each in Pattaya, Phuket, and Chiang Mai, which are major tourist destinations.

IR Legalization Progress

The Thai government's determination to legalize gaming is a crucial propelling factor for these projections. Citigroup reports, "The Thai government has shown its determination in creating a major booster to the tourism industry via gaming legalization, and the speeding legalization progress thus far is a testament to that."

Julapun Amornvivat, Thailand's Deputy Finance minister, reiterates the government's plans to present a revised Entertainment Complexes draft law to the Cabinet by the end of 2024. Once it attains Cabinet approval, the bill will progress to the House of Representatives and await deliberation.

Anticipated Benefits and Partnerships

Given the legal acceleration, Maybank Investment Bank predicts the first Thailand IRs could launch by 2029 before MGM Osaka, which is slated to be inaugurated in 2030. The complexes' establishment is set to bolster the local tourism and construction industries significantly. Once operational, major players in the travel and hospitality sector will also benefit.

Collaborations between domestic corporations and international casino operators will be vital in acquiring Entertainment Complex licenses. Las Vegas Sands, MGM Resorts, and Galaxy Entertainment are the most likely to break into the market in its infancy and kickstart Thailand's global gaming expansion.