In a series of analytical publications, IGB delves into the prospects for the Thai gambling industry.
Following the green light for gambling in the country, the legalization process is rapidly gaining momentum. Prime Minister of Thailand, Srettha Thaweesin, has outlined a goal of inaugurating a land-based casino within two years. This marks the initial step towards establishing "integrated entertainment complexes" featuring gambling in tourist hubs across the kingdom. Columnist Muhammad Cohen's exploration of how the Thai industry will mirror successful models in other Asian countries, along with its unique characteristics, offers valuable insights into the future landscape of Thailand's gambling scene.
Crafting a Singaporean-Inspired Model with a Thai Flair
Advocates of casino legalization often cite the "Singapore model" as a reference point. However, interpretations of this model and its applicability to Thailand vary significantly.
"The ultimate test for the Srettha government in legalizing casinos will be establishing a regulatory framework that garners international acclaim and entices top-tier operators," asserts Julian Spindler, a strategic communications consultant based in Bangkok.
Drawing parallels with Singapore's success in securing exclusive access to Taylor Swift's Eras Tour in Southeast Asia, Spindler emphasizes the importance of emulating Singapore's achievements in creating world-class integrated resorts.
Singapore's iconic integrated resorts, Marina Bay Sands (MBS) and Resorts World Sentosa (RWS), serve as blueprints for Thailand's aspirations in casino legalization as a tool for tourism development. These resorts leverage the revenue potential of gaming to offer a plethora of non-gaming amenities, including breathtaking rooftop infinity pools at MBS and the region's pioneering Universal Studios theme park at RWS, attracting both tourists and locals alike.
"There's a desire to replicate Singapore-style regulation, particularly in terms of the integrated resort concept," remarks a casino industry executive with extensive experience across the U.S. and various Asian markets. However, the extent to which this vision will materialize remains uncertain.
Singapore's application process for integrated resorts incorporated a range of criteria and options for license applicants, including architectural innovation, theme park integration, and conference facilities. Specific locations were designated for each integrated resort, with strict limitations on casino size.
Aspiring to the Gold Standard
While less conspicuous, Singapore has established regulations for owners, employees, and suppliers akin to those in Las Vegas, setting a world-class gold standard. Notably, Singapore has effectively banned junket promoters, enforcing stringent integrity requirements.
The city-state implemented a two-tier taxation system for mass market and VIP gaming revenues. Furthermore, an entry fee for Singapore citizens and permanent residents was introduced, collected by casinos on behalf of the government. Additionally, Singapore established the National Gaming Board to address the social impact of gambling expansion.
"Thailand would be prudent to adopt many of the regulatory principles that have contributed to Singapore's success. However, it must tailor them to the realities of legalized gambling within its borders," suggests Fredrik Gushin, Managing Director of Spectrum Gaming Group.
Gushin, who supervised the opening of 12 casinos in Atlantic City during his tenure with the New Jersey Division of Gaming Enforcement, advocates for Thailand to make a concerted effort to license gaming, combat money laundering, promote socially responsible gambling, and address the pressing issue of human trafficking.
"I urge the Thai government to recognize the significance of engaging specialized consultants with extensive experience in the policy and regulation of integrated resorts," advises Peter Cohen, Director of Regulatory Affairs at Agenda Group and former head of gambling regulators in the Australian state of Victoria. "Integrated resorts are present in Macau, Singapore, Las Vegas, Melbourne, and a few other locations."
Navigating the Legal Landscape: Uncle Sam and the Thai Black Market
A pivotal question shaping the future of Thai gambling revolves around whether local laws will permit operators from jurisdictions like North America, Singapore, and Australia to participate without jeopardizing their existing licenses.
"This is the foremost concern for the government," remarks James Kaplan, CEO of Destination Capital. "American operators bring with them their esteemed reputation and expansive marketing machinery, offering greater international reach."
However, Kaplan, based in Bangkok, notes, "The allure of the Thai market is so compelling that regional players or even a domestic operator could propel its success regardless." Insider sources disclosed to iGB that prominent Thai business conglomerates are also expressing interest in venturing into integrated entertainment.
A crucial determinant in shaping the stringency of regulations in Thailand will be the government's approach towards the existing gambling landscape. Presently, the National Lottery and a limited racing calendar stand as the sole legal gambling avenues in the country. Yet, Thailand grapples with a thriving black market, spanning from illicit betting to unregulated lottery schemes and clandestine casinos. Many of these illicit land-based gambling establishments, targeting Thai players and situated along the kingdom's borders with Cambodia, Laos, and Myanmar, are owned by Thai investors.
