Four leading casino operators from Macau are reportedly exploring investment opportunities in Thailand, positioning themselves to capitalize on what could become the world’s third-largest casino market. According to brokerage firm CLSA, cited by Macau Daily Times, Thailand’s casino market could potentially generate annual gross gaming revenues (GGR) of up to $30.8 billion, with a more conservative estimate of $15.1 billion.

The operators in question, Galaxy Entertainment Group Ltd, Las Vegas Sands Corp, MGM Resorts International, and Wynn Resorts Ltd, are all veterans in the global gaming industry and are looking to expand their geographic footprint. This move comes as Thailand moves closer to legalizing land-based casinos, aimed at boosting tourism and economic growth.

CLSA has highlighted that the Thai government is eager to revitalize its economy through legalized gaming, which has recently been voted on favorably by the country’s parliament. The proposed gaming licenses, valid for 20 years with a 17% tax rate, are tailored to attract foreign tourists and require a minimum investment of $2.7 billion per operator.

Conversely, Melco Resorts & Entertainment Ltd and SJM Holdings Ltd are less likely to venture into the Thai market due to current financial constraints. This strategic divergence highlights the varying capacities and priorities within Macau’s gaming sector as companies navigate global expansion opportunities.

The report by CLSA underscores the appeal of Thailand as a major gaming hub due to its strategic location, which is expected to attract a significant number of tourists from China and India. Analysts estimate that with favorable regulatory conditions, each complex in Thailand could achieve an EBITDA margin of 40%, similar to that of high-performing venues in Singapore.

Not a Problem for Macau

Thailand’s integration into the casino market is not expected to disturb Macau‘s stronghold but rather complement it by offering diverse market offerings and visitor profiles. The distinct positioning between the two markets suggests that both can thrive simultaneously without cannibalizing each other’s customer base.

In the broader context, the development of Thailand’s casino sector is seen as a potential game-changer for the region, though. It is poised to create substantial economic benefits, including increased tourism and employment opportunities. Furthermore, it could set a precedent for regulatory frameworks in neighboring countries considering similar liberalization of gaming laws.

As the regulatory landscape in Thailand continues to evolve, the participation of established Macau operators could accelerate the development of a robust and competitive gaming industry in Southeast Asia. This prospect is especially significant as it comes at a time when global operators are increasingly looking to diversify their portfolios across new and emerging markets.