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Post date: March 29, 2020, 04:16h
Last Updated on: April 29, 2024 04:16h
The House of Representatives in Thailand passed a bill allowing gaming facilities to be included within entertainment complexes easily on Thursday.
Out of the 257 House Members present, 253 supported the Casino Gaming Legislation. The Deputy Minister of Finance Julapun Amornvivat stated that a feasibility study for a casino could be presented to the national government cabinet. It’s likely that the first gambling venue in Thailand will open doors ahead of MGM Resorts International’s Osaka (NYSE MGM) integrated resort, if momentum keeps building. If momentum continues to build, it’s possible that the first gaming venue in Thailand could open its doors before MGM Resorts International (NYSE: MGM) Osaka integrated resort. first Japanese casino hotel The project is scheduled to be completed in 2030.
In a client note today, Maybank Investment Bank said that if a regulatory structure takes two years to complete and construction requires three years, then the first entertainment center may not open until 2029 in Thailand.
If Thailand’s National Cabinet approves entertainment complexes in a formal manner, up to 8 such locations could be allowed and the awarding of gambling licenses is likely to occur in stages.
Thailand casinos can beat Japan efficiency, and imitate Singapore’s model
Thailand’s reputation as a major tourist destination for Southeast Asia, and its propensity to draw visitors from China and Western countries meant that it was expected to be able to attract the biggest names of the gambling industry when bidding for gaming permits.
The scenario would be exacerbated if Thailand continued to display efficiency and effectiveness in the regulatory and legalization process. Many of the biggest operators of this industry have been forced to close their doors due to delays and a lack of clarity in these areas. Japan thrown in the towelThis leaves Japan with only the MGM Osaka casino to begin its entry into gaming.
The low tax rate could also attract international operators.
“Proposed gaming tax rates are low at 17 percent and social safeguards à la [in the manner of] Analysts at Maybank have stated that Singapore is likely to be the next destination.
Singapore has only two integrated resorts. They are run by Genting Singapore (NYSE: LVS) and an affiliate of Las Vegas Sands.
Thailand casinos: Other Details
Thailand, if the tax on gross gaming revenue is increased to 17% (GGR), would be the second lowest in the world after Cambodia. This, along with the 20-year term expected for licenses and renewals at every 5 years may appeal to operators. There’s also talk that the largest required investments could be in the $2.5 billion to $3 billion range — easily approachable for any number of operators that could be interested in Thailand.
Maybank reported that the Thai Government likely prefers the entertainment complexes be built in one of thirteen locations desired in the Eastern, Northern, Northeastern, or Southern parts of the nation. A committee will be led by the country’s premier to assess casino bids.
The country’s tourism expenditure could increase by up to 52% a year if Thai casinos are built. This is one of the reasons why Thailand will attract bids from other countries. Big names In the gaming industry.
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