Thailand’s push toward legalizing integrated resorts is gaining momentum, with the prospect of casino resorts becoming a reality attracting substantial international interest. As legislation progresses, global stakeholders are paying close attention to the developments.
International Operators Eyeing Thailand’s Market
Prime Minister Prommin Lertsuridej recently provided insights into the situation, mentioning that six major international companies have expressed strong interest in acquiring a casino license in Thailand. While the PM did not name these companies directly, previous reports offer clues about their identities.
Melco Resorts is one of the most notable contenders. It is a prominent developer, owner, and operator of integrated resort facilities across Asia and Europe. Established in 2004 and headquartered in Hong Kong, the company is renowned for its luxurious, world-class destinations that seamlessly combine entertainment, hospitality, and leisure. Melco’s flagship properties, including City of Dreams in Macau and Manila, Studio City, and Altira Macau, are celebrated for their innovative designs, upscale accommodations, and wide array of attractions catering to affluent travelers and gaming enthusiasts. In addition to gaming, these resorts feature high-end dining options, state-of-the-art performance venues, and premium retail spaces.
Melco Resorts has also expanded its footprint into international markets, with notable projects such as City of Dreams Mediterranean, slated to be Europe’s largest integrated resort upon completion. The company has earned multiple accolades, including Forbes Travel Guide stars for its properties and Michelin stars for its restaurants, underscoring its dedication to delivering premium experiences.
Financially, in the fiscal year ending December 31, 2023, Melco Resorts & Entertainment Limited reported net revenues of HK$29.53 billion, marking an increase of HK$18.97 billion compared to the previous year. Despite this substantial revenue growth, the company experienced a net loss attributable to Melco Resorts & Entertainment Limited of US$277.6 million, or US$0.63 per American Depositary Share (ADS), for the year 2023.
The company initially focused on building an integrated resort in Japan but abandoned those plans due to delays and difficulties. Shifting its ambitions to Thailand, Melco has already announced its intention to establish an office in Bangkok, signaling its commitment to this new opportunity.
Wynn Resorts is another major player closely monitoring developments in Thailand. It is a globally recognized luxury hospitality and entertainment company known for its opulent integrated resorts. Established in 2002 by Steve Wynn, the company operates some of the most iconic properties in the world, including Wynn Las Vegas, Encore Las Vegas, Wynn Macau, and Wynn Palace in Cotai. These properties are celebrated for their architectural elegance, lavish interiors, and attention to detail, featuring world-class accommodations, fine dining, upscale retail, entertainment venues, and expansive gaming areas. Wynn Resorts places a strong emphasis on guest experience, consistently delivering exceptional service and creating a sense of exclusivity. The company’s resorts have earned numerous accolades, including Forbes Travel Guide Five-Star Awards and Michelin stars for their restaurants, cementing Wynn’s reputation as a leader in luxury hospitality.
In terms of financials, Wynn Resorts demonstrated significant financial improvement in 2023. The company reported operating revenues of $6.53 billion, an increase of $2.78 billion from $3.76 billion in 2022. Net income attributable to Wynn Resorts, Limited was $730.0 million, or $6.32 per diluted share, for the year ended December 31, 2023, compared to a net loss of $423.9 million, or $3.73 per diluted share, in the prior year. This positive shift was primarily due to increased operating revenues from their Macau and Las Vegas operations, as well as an income tax benefit related to the release of a valuation allowance on certain deferred tax assets resulting from sustained profitability in the U.S.
This company, which is currently working on its Wynn Al Marjan project in the UAE, is keen on expanding its international footprint. Similarly, MGM Resorts has shown interest in the emerging markets of both the UAE and Thailand, aiming to be a front-runner in these lucrative regions.
Additionally, other global giants such as Genting Malaysia, Las Vegas Sands, and Galaxy Entertainment have also indicated their eagerness to enter the Thai market.
Beyond Casino Gaming: A Tourism Powerhouse
The proposed integrated resorts in Thailand aim to be more than just gambling hubs. According to PM Prommin, the goal is to enhance the nation’s tourism sector by creating multifaceted attractions. These resorts are expected to feature thousands of hotel rooms and a variety of entertainment options beyond the casino floors.
The resorts will offer amenities such as theaters, exhibition centers, luxury shopping districts, theme parks, and high-end dining experiences. The government envisions these destinations as comprehensive entertainment hubs designed to attract both domestic and international tourists.
Speedy Legislative Progress
Thailand’s swift progress in drafting and advancing casino legislation is partly driven by its desire to outpace Japan, which has faced multiple delays in establishing its own integrated resorts. Additionally, the government is keen to introduce new revenue streams to bolster the national economy.
Experts predict that once the integrated resorts are operational, Thailand’s GDP could see an increase of up to 0.7%. These projects are also anticipated to significantly boost tourism revenue and create thousands of new jobs, reinforcing the country’s economic growth.
Pop Culture’s Influence on Tourism
Thailand’s appeal as a tourist destination may also receive a pop culture boost. Melco Resorts has suggested that the upcoming third season of HBO’s popular series The White Lotus, which is rumored to be set in Asia, could inspire more tourists to visit Thailand, further benefiting the local economy.
Online Gambling as a Complementary Market
In addition to physical casinos, Thailand is exploring the legalization of online and crypto gambling. This move aligns with global trends and has the potential to further strengthen the country’s economic position. The government is also considering the regulation of cryptocurrency-based gaming, reflecting the sector’s latest innovations.
Draft regulations for online gambling and iGaming are expected to be finalized within the coming weeks. This regulatory framework could pave the way for a more diverse and technologically advanced gaming market in Thailand.
A Major Step Forward
Thailand’s journey toward establishing integrated resorts represents a significant shift in its approach to tourism and economic development. With top-tier international operators expressing interest and the government’s focus on creating world-class entertainment hubs, the future looks promising. If successful, these initiatives could transform Thailand into one of Asia’s premier gaming and entertainment destinations.
