Maybank Analysts Suggest Thailand Casinos Could Be Strongest in Asia
Maybank Securities (Thailand) PCL has released a report suggesting that any future casino resorts developed in Thailand could achieve the highest EBITDA margins in the Asian gaming market. The report was issued on Monday and provides a detailed look into the financial potential and timeline for the country's anticipated gaming industry developments.
LISTEN TO THIS ARTICLE:The bank's analysis points to a range of factors contributing to this projection, most notably Thailand's proposed casino tax rate, which is comparatively lower than those in neighboring jurisdictions. Although some commentators have indicated that the formal bidding and licensing process for integrated casino resorts, referred to locally as "entertainment complexes," might not take place until 2027, Maybank remains optimistic.
Related: Research Shows Public Do Not Support Thailand Gambling LawsThe bank maintains that the process could align with the earlier proposed timeline, with Senate approval and full enactment of the necessary legislation anticipated by the first quarter of 2026. This expectation comes despite existing political tensions within the ruling coalition, which includes the Pheu Thai Party and the Bhumjaithai Party, each overseeing key ministries involved in the legalization effort.
One of the primary drivers of profitability in the Thai casino model, according to Maybank, is the low proposed gross gaming revenue tax rate of 17%. This figure is significantly below the rates applied in markets such as Singapore, Malaysia, the Philippines, and Macau, where tax rates on mass-market play typically range from 25 to 40%.
Macau in particular imposes a flat 40% rate on both VIP and mass-market gaming segments. This comparatively favorable tax regime could enable Thai casino resorts to achieve EBITDA margins between 34 and 49%, outperforming most regional peers.
The report outlines that legalized casino resorts in Thailand could generate an estimated THB195 billion annually in gaming revenue alone, with an additional 30% expected to come from non-gaming services such as hospitality, dining, and entertainment. These figures underline the broader economic impact that the casino sector could have on Thailand's economy if the legislation moves forward as expected.
While the draft legislation does not currently specify a minimum investment amount for each complex, industry expectations suggest that each large-scale resort would require a capital outlay of approximately THB100 billion. The licensing structure would include an initial fee of THB4.9 billion and an annual renewal fee capped at THB1.0 billion. Licenses would be issued for a 30-year term, with reviews scheduled every five years to ensure regulatory compliance and performance benchmarks are being met.
More Business News
Strong Tourism Activity to Drive Gambling
Thailand's potential to become a mass-market gaming hub is supported by its existing tourism infrastructure. Maybank highlighted the country's annual influx of approximately 40 million international visitors as a solid foundation for casino development.
While it may be challenging for Thailand to compete with established financial centers such as Singapore and Hong Kong in attracting VIP clientele, the report emphasizes that mass-market operations typically yield higher margins due to lower commission structures tied to junket arrangements.
Maybank's revenue estimates for Thai casino resorts suggest an annual intake of THB278 billion, equivalent to around US$8.39 billion. This projection positions Thailand as potentially the fourth-largest casino market in Asia.
The institution also identified a potential upside stemming from the redirection of illicit online gambling activity into regulated casino environments. According to Thailand's Center for Gambling Studies, the annual turnover from underground online gambling is estimated at THB155 billion. Redirecting even a portion of this activity into legalized venues could significantly boost total gross gaming revenue, potentially positioning Thailand behind only Macau in the region.
RELATED TOPICS: Business
Latest News
Most Read
Must Read
Interviews
Sweepstakes Casinos: Thriving in an Ever-Changing Industry – Interview with Attorney Stephen C. Piepgrass
Feb 17, 2025
Interviews
Review this New Post
Leave a Comment
User Comments
Comments for Maybank Analysts Suggest Thailand Casinos Could Be Strongest in Asia