Once Thailand's casino industry matures, it may produce yearly gross gaming revenue (GGR) surpassing that of Singapore, positioning the nation to become the third-largest gaming market globally.
According to Citi analysts George Choi, Preenapa Detchsri, and Timothy Chau, who recently reported that when Thailand fully develops its casino market, it could achieve annual GGR of $9.1 billion. That would suffice to surpass Singapore for the third position on the worldwide ranking, following only Macau and Las Vegas. Thailand has not officially sanctioned integrated resorts, but lawmakers are working to hasten related legislation.
"Deputy Finance Minister Julapun Amornvivat recently reiterated the Thai government’s intention to table a revised draft law … to the cabinet by end-2024. When the council of state approved the bill … the race for licences in Thailand will quickly commence,” according to Citi,
The $9.1 billion GGR projection relies on Thailand granting approval for a minimum of five gaming licenses to commence — two in Bangkok and one each in Phuket, Pattaya, and Chiang Mai.
Singapore/Thailand Not a Direct Comparison
If Thailand ultimately achieves or surpasses the Citi prediction and ascends to the third position among global casino markets, it would be a remarkable accomplishment, especially given that the Southeast Asian country currently lacks any regulated gaming establishments.
Nonetheless, the comparisons with Singapore can be considered exaggerated. The city-state contains only two integrated resorts — Marina Bay Sands by Las Vegas Sands and Resorts World Sentosa by Genting — and this is unlikely to change in the near future since those operators enjoy duopoly protection for the next thirty years.
Singapore is satisfied with only two gaming properties, and officials have indicated no intention of allowing any increases to that figure in the near future. Therefore, if Thailand initiates its casino gaming venture with four or five locations, it’s logical to anticipate that it would swiftly exceed Singapore in GGR terms due to having a greater number of casinos.
In 2023, Singapore achieved $5.11 billion in GGR—its highest figure for that measure since the beginning of the coronavirus pandemic. Additionally, Marina Bay Sands and Resorts World Sentosa rank among the most lucrative integrated resorts globally.
Thailand's Captivating Casino Industry
As new, significant growth opportunities are hard to find in the global gaming sector, Thailand presents an attractive market for operators for various reasons. These factors encompass the nation's role as a frontrunner in tourism within Southeast Asia and suggested rules designed to attract the top players in the gaming industry.
Analysts view Thailand’s dedication to efficiency as reflecting Singapore's approach from twenty years ago, suggesting that the initial casino hotels in Thailand might launch in five or six years, and the proposed gaming tax rate of 17% is regarded as beneficial for operators’ profits.
“In light of the lower gaming tax rate at 17 percent and the lower operating expenses — mostly wages and utilities — versus Singapore, we believe earnings before interest, taxes, depreciation, and amortization (EBITDA) margin could reach 40 percent to 50 percent, which implies Thailand could see industry EBITDA of approximately $4.1 billion (annually),” added the Citi analysts.