Global gaming giant MGM Resorts has watched the efforts to regulate casinos in Thailand from the front seats, hoping to capitalize on emerging opportunities in the country. As these efforts progressed, the company encouraged local authorities to adopt a competitive casino tax.
Thailand Casinos Inch Closer to Reality
Thailand recently warmed up toward the idea of casinos, making quick strides toward the legalization of integrated resorts.
Thai authorities have previously expressed optimism about the future of casino gaming, saying that they could potentially rival Singapore and open the first Thai resort before MGM Osaka goes live.
Despite pushback from those fearing that casino gaming would do more harm than good, the efforts have progressed, attracting the attention of international companies, such as MGM.
MGM has previously expressed confidence that Thailand could become a top market. Now, the company, which is prepared to invest between $3 billion and $5 billion in a casino in Bangkok, has warned that a sensible tax rate would be a must.
MGM Urges Thailand to Consider the Competition
As reported by the Bangkok Post, MGM Resorts believes that Thailand should adopt a tax rate that is competitive with Singapore, if the country is to achieve the success it envisions.
Ed Bowers, the company’s president of global development spoke with the Post, saying that Thailand should keep nearby casino regions in mind when determining its casino tax. He pointed out that Macau and Japan boast tax rates of 40% and 30%, respectively, while Singapore has an average GGR tax of 17%.
According to Bowers, Thailand should also consider allowing locals to play, warning that keeping the casinos open to foreign players only could fail to achieve the dramatic success the Thai government counts on. He cited South Korea’s foreigner-only casinos as a warning, noting that some of them have been encountering financial trouble.
Japan, on the other hand, is planning to collect a tax of approximately $40 from locals wishing to enter the upcoming MGM Osaka casino. Bowers didn’t disagree with this approach but warned that Thailand should make sure that the entry fee doesn’t dissuade players from gambling.
Bowers Says Regulated Gaming Will Benefit Thailand
Bowers also addressed the potential safer gambling benefits of allowing locals to play, arguing that access to a legal alternative would shield some consumers from the dangers of unlicensed operators. At the same time, casino taxes would fuel a variety of government initiatives, including education and problem gambling support.
Bowers further argued that additional benefits would be thousands of new jobs, which would be a strong economic stimulus.
Bowers teased MGM’s plans for Thailand, saying that his team would prefer to have its casino occupy 5-10% of the total resort area. He praised the government for capping the total casino area to 10%, which is more than what Japan and Singapore allow.