Maybank Securities forecasts that Thai entertainment complexes (ECs) featuring casinos could yield approximately THB187 billion ($5.14 billion) in annual revenue, equivalent to roughly 1 percent of Thailand’s GDP.
Maybank notes that the projections rely on the forecasts of its gaming analyst and the number of tourist arrivals in Thailand for the year 2019.
The suggested Thai casino tax rate of 17 percent stands out favorably compared to neighboring gaming jurisdictions like Singapore, Malaysia, the Philippines, and Macau, where mass market tax rates range from 25-40 percent.
The government is strategizing to introduce entertainment complexes comprising hotels, shopping malls, and casinos. The Prime Minister mentioned that the cabinet aims to conclude a draft bill soon for submission to parliament in the forthcoming weeks.
According to the Bangkok Post, “If approved, we expect the first such complex to open by fiscal 2029, as it will take at least three years for construction after the legislation is approved,” remarked tourism analyst Boonyakorn Amornsank, highlighting that Singapore’s initial casino required six years to open after its proposal.
The complexes are expected to provide numerous hotel rooms, which may not yield profits initially, aiming to draw in gamblers, Boonyakorn notes. He emphasizes that while tourism stands to gain from these complexes, the benefits may not be evident in the initial stages.
Meanwhile, the same analyst mentions that Singapore’s property prices surged approximately 30 percent year-on-year in 2007, preceding the opening of the first casino in 2010. If realized as a casino project in the country, the airports of Thailand are expected to be the primary beneficiary. However, hoteliers with establishments near these complexes may not experience significant gains from a potential increase in room rates, says Boonyakorn.
The Thai casino proposal suggests the construction of five to eight complexes across multiple provinces.
According to a report from Maybank from analyst Samuel Yin Shao Yan, the favored locations are in the Eastern Economic Corridor (Rayong, Chonburi, and Chachoengsao), the south (Phuket, Phang Nga, Krabi), the north (Chiang Mai, Chiang Rai, Lampang), and the northeast (Nong Khai, Udon Thani, Khon Kaen, Nakhon Ratchasima).
In addition to the attractive conditions, Maybank notes that corporate tax rates of 20-30 percent will be levied on pre-tax profit.
Last month, another study, which was going to be submitted to the Thai parliament, suggested that once ECs with casinos are established, there is a possibility for a significant increase in average tourist expenditure, potentially by 52 percent to THB65,050 ($1,790) per trip.
The study indicates that legalizing casinos within ECs in Thailand has the potential to boost tourism revenue by approximately $12 billion, while also addressing the persistent issue of illicit gambling. At the same time, the study stated that the additional income generated could enhance the country’s gross domestic product (GDP) growth by 1.16 percentage points.
