Thailand’s Integrated Casino Resorts: Asia’s Next Big Gaming Hub?

Thailand's iGaming and casino outlook is looking promising. The Southeast Asian tourist paradise is predicted to continue to move ahead with legalising entertainment complexes (integrated resorts) under the leadership of newly sworn-in Prime Minister Paetongtarn Shinawatra. This momentum builds on a proposal first introduced by former Prime Minister Srettha Thavisin to support Thailand’s economy. 

The move captured the interest of the worldwide gambling and iGaming industry, including noted leaders such as WA.Technology’s CEO Tim Scoffham who shared his thoughts on the matter in a recent LinkedIn post. But what exactly does it entail? What are the possible outcomes? And what can we expect from a country renowned for its success in the tourist trade? 

Thailand Licences – The Basics

• The proposed 30-year licences would be re-evaluated every five years.
• The renewal period would be a maximum of ten years. 
• Licences would cost ฿5 billion (€129.4m/$141.9m).
• Application fees would be ฿100,000. 
• Annual fees would be ฿1 billion. 
• Renewal fees would be ฿5 billion. 
• A duplicate licence would cost ฿100,000.

Thailand’s Casino Plans Under New Leadership

Thailand is gradually establishing its potential for its first integrated resort. Prime Minister Shinawatra has not yet explicitly endorsed the initiative, but her father, former Prime Minister Thaksin Shinawatra, previously showed his support for the proposal as a method to revitalise Thailand’s economy.

A recent public commentary period showed high support, with 80% favouring legalising casinos. The government’s 2023 study suggests that these entertainment complexes could generate over ฿400 billion (US$12 billion) in revenue in their first year. 

Thailand’s Growth Strategy

The proposed entertainment complexes could follow a model similar to Singapore’s, where non-gambling attractions make up the bulk of the sprawling resorts. Casinos would take up between 3% and 10%, with the rest of the area dedicated to attractions such as restaurants, shops, theatres, concert venues, and hotels. The idea is to broaden the multi-faceted complexes’ appeal and functionality, drawing in tourists with various interests.

Learning from Singapore & Macau

Long regarded as a leading model for integrated resorts, Singapore is generally considered a success story for the industry. In 2023, the total gaming revenue from Singapore's two integrated casino resorts reached SG$5.25 billion (€3.6 billion). Prominent supporters of Thailand’s possible complexes argue that replicated success in their country could be the final push needed to re-establish Thailand to pre-Covid heights.

Macau continues to grow. In August 2024, Macau's gross gaming revenues rose 14.8% compared to 2023, surpassing analysts' expectations, who had predicted 13.2% growth. However, Macau’s reliance on high-roller Chinese visitors from the mainland differs from Thailand’s broader visitor appeal. Careful marketing strategies could help Thailand attract visitors from near and far.

A Faster Path Than Japan

Not so long ago, Japan was whispered to be the next big market about to burst onto the iGaming scene. However, Japan has faced ongoing stumbling blocks and pitfalls, with the first resort now potentially delayed until 2030. In contrast, Thailand has moved swiftly, with the first casino anticipated to open within a couple of years. Thailand could well outpace Japan.

Benefits & Challenges

Thailand’s casino tourism projected revenue could tackle the slump that followed the pandemic. Five strategically placed complexes close to major cities and tourist hot spots with transport accessibility could refresh tourist appeal.

However, there will be challenges along the way. Gambling is prohibited except for horse racing and the government’s official Thai Lottery. Legalisation would need to address this and other complexities.

There are also logistical challenges too. The casinos should help attract wealthy international tourists, but studies suggest that up to 90% of visitors could be Thai nationals. Appealing to high-roller tourists, rather than simply serving the local community, will be key to long-term success.

Tourism & Thailand

Thailand is widely considered a haven for holidaymakers due to its lush scenery, vibrant nightlife, and rich cultural heritage. Visitors to the Southeast Asian gem range from backpackers keen to enjoy sundown beach parties to honeymooning couples seeking romance and luxury. In 2019, before the global pandemic, 40 million international visitors descended on the country, contributing $61 billion in revenue. Thailand’s tourist industry is re-establishing itself after the post-pandemic slump, with 28 million visitors recorded in 2023. Integrated resorts would make a significant contribution to this economic recovery.

A History of Gambling in Thailand

Though some countries in the wider region are staunchly anti-gambling, Thailand has historical roots in gambling as a pastime, dating back to the 17th century. Legal gambling houses, particularly among the increasing Chinese population, flourished. By the late 19th century, though, King Chulalongkorn gradually began shutting them down, with the last legal gambling house closing its doors in 1917. Despite these closures, some gambling continued, albeit under increasingly restrictive regulations. In 1935, the country introduced its current Gambling Act (archived English translation), which remains in place today. Attempts were made to reintroduce state-owned casinos between 1939 and 1945 but were short-lived. 

Responsible Gaming: A Priority for the Future

As Thailand’s situation develops, responsible gaming will be a priority for its success. Singapore’s model offers some valuable lessons. For instance, in Singapore, locals must pay entry fees to visit casinos, a measure designed to help ensure that only those who can afford to gamble can do so and reduce problem gambling among residents. Thailand will implement a similar approach, with a ฿5,000 entry fee for Thai nationals. 

Additionally, the government must develop and update gambling laws and regulations similar to those in other major gaming markets. Measures could include responsible gaming practices, AML and KYC procedures, and strict oversight to ensure operators comply with the law. 

If the proper measures are implemented and the initiative is conducted well, Thailand's gambling future will be bright.

Thailand’s Road Ahead 

iGaming and casinos in Thailand remain, for now at least, speculative. However, there is a clear path forward if everything progresses smoothly. It is increasingly likely that with the support of many public figures and a large percentage of the public, we shall see a positive outcome. Many major international operators are already keen to explore Thailand’s gambling opportunities, but the success of these ventures will depend on several factors. The government’s next step will be to refine the draft bill and consider the feedback received during the public comment period before the cabinet and, ultimately, the House of Representatives make their final decision.

With the prospect of flourishing entertainment complexes and casinos on the horizon, Thailand has the potential to become the world’s next big iGaming market. If undertaken correctly, draft regulations and growing public support signal a promising future for Thailand’s gambling industry. While challenges remain, the momentum is undeniable. The coming years will be crucial. Watch this space…

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WA.Technology & Responsible Gaming

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