Macau gaming operator Galaxy Entertainment Group (GEG) is set to enter the bidding process for an integrated resort (IR) license in Thailand, with plans to initiate a Request for Proposal (RFP) as early as mid-2025, according to Goldman Sachs.
The information was disclosed following a meeting between Galaxy management and the investment bank during the APAC Consumer & Leisure Corporate Day on January 8th, 2025.
Galaxy Entertainment has expressed strong interest in participating in the competitive IR license bidding process in Thailand, focusing exclusively on the Bangkok site.
Based on observations from Goldman Sachs’ recent Non-Deal Roadshow (NDR) in November 2024, the investment bank notes that Galaxy sees Thailand’s potential as one of the largest casino markets in Asia. The company projects the nation’s annual gross gaming revenue (GGR) of $3-5 billion if the country proceeds with liberalization – a conservative estimate.
The timeline for this development depends on the ongoing review of a draft bill by the Thai Parliament. If the bill is approved, it could pave the way for an official RFP to commence as early as mid-2025, allowing major players like Galaxy to submit their proposals.
According to the latest update on the casino legalization timeline, the Thai government could approve entertainment-complex legislation by May 2025, potentially opening the door for legal casinos by the end of the decade. Stakeholders and authorities had previously mentioned targeting an IR opening by 2029, ahead of Osaka.
Regarding its geographic focus, Galaxy has stated that plans are to concentrate efforts exclusively on the Bangkok site, despite Thailand’s blueprint to issue around five gaming licenses across the country, three of which will be located outside of Bangkok. The company believes Bangkok, as one of the world’s top travel destinations, offers a unique advantage by providing greater certainty in terms of return on investment.
Thailand’s tourism authorities recently announced that the country welcomed over 35.54 million foreign tourists in 2024, marking a 26.27 percent increase compared to the previous year. This growth is attributed to the relaxation of entry rules and the implementation of visa exemption measures.
Additionally, Goldman Sachs shared that Galaxy is open to forming partnerships with local businesses or companies with strong regional ties, which could enhance the prospects of their bid.
Recent media reports indicate that the Thai government is also considering the legalization of online gaming. While still under evaluation, Goldman Sachs notes that this development could represent a significant opportunity for operators, with some estimates suggesting a potential market size of $2-3 billion, based on the Philippines’ experience with online gaming regulation.
The coupling of both the land-based and online components could make Thailand a stand-out gaming jurisdiction in Asia, given that it’s only major competition for the dual-pronged approach is the Philippines.
