Thailand Casino Market Could Top Singapore, Analysts Say

Thailand Casino Market Could Top Singapore, Analysts Say

Once Thailand’s casino market matures, it may produce annual gross gaming revenue (GGR) surpassing that of Singapore, positioning the nation to potentially become the third-largest gaming hub globally. 

According to Citi analysts George Choi, Preenapa Detchsri, and Timothy Chau, a recent report indicates that once Thailand fully develops its casino market, it might achieve an annual GGR of $9.1 billion. That would be sufficient to surpass Singapore for the third position on the worldwide list, following only Macau and Las Vegas. Thailand has not formally sanctioned integrated resorts, but lawmakers are working to fast-track associated legislation.

"Deputy Finance Minister Julapun Amornvivat recently reiterated the Thai government’s intention to table a revised draft law … to the cabinet by end-2024. When the council of state approved the bill … the race for licences in Thailand will quickly commence,” according to Citi,

The $9.1 billion GGR prediction relies on Thailand granting a minimum of five gaming licenses to begin—two in Bangkok and one each in Pattaya, Phuket, and Chiang Mai. 

Singapore/Thailand Not a Direct Comparison 

If Thailand ultimately achieves or surpasses the Citi prediction and ascends to the third position in global casino markets, it would be a remarkable accomplishment, especially given that the Southeast Asian country presently lacks regulated gaming establishments. 

Nonetheless, the comparisons to Singapore can be seen as exaggerated. The city-state features only two integrated resorts — Marina Bay Sands by Las Vegas Sands and Resorts World Sentosa by Genting — and this situation is unlikely to alter in the near future since these operators enjoy duopoly protection for the next thirty years. 

Singapore is satisfied with only two gaming establishments, and officials have indicated no desire to increase that number in the near future. Thus, if Thailand begins its casino gaming venture with four or five locations, it is logical to anticipate that it would swiftly outpace Singapore in GGR due to having a greater number of casinos. 

In 2023, Singapore achieved $5.11 billion in GGR, marking its strongest performance in that measure since the start of the coronavirus pandemic. Additionally, Marina Bay Sands and Resorts World Sentosa rank among the most lucrative integrated resorts globally. 

Thailand's Attractive Gambling Sector 

With significant growth opportunities hard to find in the global gaming sector, Thailand presents an attractive market for operators for various reasons. These comprise the nation’s position as a frontrunner in tourism within Southeast Asia and suggested rules intended to attract the top names in the gaming industry. 

Analysts view Thailand's dedication to efficiency as reminiscent of Singapore two decades prior, suggesting that the initial casino hotels in Thailand could potentially launch within five or six years, with the proposed gaming tax rate of 17% considered advantageous for operators' profits. 

“In light of the lower gaming tax rate at 17 percent and the lower operating expenses — mostly wages and utilities — versus Singapore, we believe earnings before interest, taxes, depreciation, and amortization (EBITDA) margin could reach 40 percent to 50 percent, which implies Thailand could see industry EBITDA of approximately $4.1 billion (annually),” added the Citi analysts.