ASIAN ROUNDUP
been linked to Asian bettors and syndicates. All that changed with the Royal Commission report into the operations of Crown Casinos in Melbourne and Perth in 2021 and the last few years have seen the industry trying to reinvent itself against some severe financial and operational headwinds. A US$8.9bn acquisition of Crown by asset manager Blackstone and subsequent cash injections shored up finances but it is not yet out of the regulatory woods. Crown rival Star Entertainment Group is itself in such dire financial shape as to risk insolvency. In mid-2024 the company called in former Crown savior Steve McCann to work his magic. McCann engineered the deal with Blackstone and, with their support, won back its casino licenses in Sydney and Melbourne. He has ruled out a similar fire sale at Star and, in any event, profitability for either operator remains a long way off. Elsewhere Australian regulators lead the way once again in enforcement actions with close to US$55 million in fines across the first ten months of 2024. Emerging surprises Whilst countries like Indonesia still look a long way from legalizing their gaming sector, elsewhere it has been a year for emerging markets, with both Thailand and the UAE attracting the attention of leading operators worldwide. Thailand’s draft Integrated Resort Act survived a change of prime minister and will be presented to the cabinet for consideration before the end of the year. Deputy Finance Minister Julapun Amornvivat announced the development and also revealed that the draft act gained 80+ percent support in a recent public hearing. The proposal has the support of former prime minister Thaksin Shinawatra, father of the new prime minister. He shared his vision of integrated resorts forming part of a wider engagement with private investors to fund much needed infrastructure and technology projects. Such high-level support does not mean the Act is guaranteed an easy ride. Some influential figures in Thailand’s coalition government have taken a stand against it if not on principle, then at least on the details. However, assuming these hurdles can be overcome, there are high hopes for the potential of the
Thai market. Latest reports from Citigroup estimates that Thailand’s GGR could surpass that of Singapore (although Singapore may be fighting back with the announcement of a US$5bn expansion of waterfront property Resorts World Sentosa) to reach a staggering US$9.1bn once the market is fully developed. This would place Thailand behind only Macau and Las Vegas in the global rankings. There are still discussions on the levels of Thai ownership with recommendations ranging between 30 and 51 percent. The number of licenses to operate IRs is still uncertain although projected to fall in a range from three to seven. Complexes are likely to be strategically placed in popular tourist destinations such as Phuket, Chiang Mai and Pattaya, rather than just in Bangkok. License duration is clearer at 30 years, renewable in 10-year increments, with a license fee set at THB5 billion (US$148 million) and an annual fee of THB1 billion (US$30 million). For private investors, the draft law stipulates a minimum registered capital of THB10 billion (cUS$300 million). Casino floors would take up no more than 10 percent of total resort space with an emphasis on non-gaming attractions like amusement parks, hotels and concert arenas. A casino complex in Bangkok would require an investment of up to THB100bn (US$2.94bn) with properties outside the capital needing half of that. Thaksin sees an opportunity for Thai nationals to benefit during construction and operation with the creation of a large number of highly skilled jobs. The rewards could also be substantial with a 2023 study suggesting that the integration of casinos could increase tourism revenue by at least THB408bn in the first year alone. The plan also includes the regulation of online gambling which according to estimates is currently worth THB170bn per year in GGR. Much of the domestic market crosses the border to casinos in Cambodia, Vietnam, Myanmar and Laos. Others willingly patronize the black market so there is rich potential simply by keeping gamblers at home. Thaksin supports a 30 percent tax rate on iGaming, with revenue earmarked for education.
Questions still remain over what the regulatory regime will look
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IMGL MAGAZINE | DECEMBER 2024
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