Entertainment <\/p>\n
The fits-and-starts progress of Thailand gaming legislation hasn\u2019t soured MGM Resorts on the market. CEO Bill Hornbuckle expects lawmakers to approve the Entertainment Complex bill early next year.<\/strong><\/p>\n On 13 March, Hornbuckle and MGM Chief Financial Officer Jonathan Halkyard discussed Thailand on a JP Morgan Gaming, Lodging, Restaurant and Leisure Management w<\/a>ebcast<\/a>.<\/p>\n Hornbuckle acknowledged that passage of the kingdom\u2019s Entertainment Complex bill \u201cwon\u2019t go as fast as I would like to think it will\u201d in light of public opposition. But, he added, it \u201cdoesn\u2019t need to take as long as it did in Japan\u201d.<\/p>\n The Japanese parliament approved casino legislation in 2018 but did not issue its first (and only) licence to MGM until 2023. Covid interrupted the process, but analysts also blamed the ponderous pace of regulatory debate.<\/p>\n As for Thailand, Hornbuckle said: \u201cI would like to think by the first or second quarter of 2026, there\u2019s real legislation and a real process that\u2019s been identified.\u201d<\/p>\n The CEO called Thailand \u201can amazing marketplace\u201d that would be \u201ccheap to build \u2013 35 cents to 40 cents on the dollar \u2013 and even cheaper to operate.<\/p>\n \u201cSo if you were lucky enough to get a licence and build something of substance, it\u2019s a meaningful market. And I think the margin in that business would be pretty extensive.\u201d<\/p>\n Estimated gross gaming revenue of up to 308 trillion baht (\u00a37 billion\/\u20ac8.36 billion\/$9.1 billion) per year would make Thailand the world\u2019s third-largest market after Macau and Las Vegas.<\/p>\n That\u2019s got major gaming operators lining up to bid. Melco Resorts & Entertainment has already opened a Bangkok office. Others in the queue include Galaxy Entertainment Group, Wynn Resorts, the Las Vegas Sands Corp and Genting Singapore, as well as MGM.<\/p>\n If the US-based operator gets a nod, the project would likely fall under the MGM China umbrella, said MGM chief financial officer Jonathan Halkyard, according to a transcript<\/a> published on Investing.com. The unit\u2019s balance sheet \u201cis really under-levered compared to the performance of that business and its prospects\u201d, Halkyard said. \u201cSo that\u2019s the appeal potentially of using that balance sheet as a vehicle to develop property in Thailand.\u201d<\/p>\n Proponents of the plan originally wanted to open the first entertainment complexes in 2029. That would give Thailand\u2019s industry a head start on Japan, where MGM Osaka will debut in 2030.<\/p>\n That outcome now seems unrealistic. The proposal faces considerable opposition<\/a> from the public and anti-gambling activists. Even the Council of State<\/a>, a government advisory body, has complained that the bill is more about gambling than entertainment and that it fails to include safeguards against problem gambling.<\/p>\n Last week, following demonstrations in front of the Government House in Bangkok, Prime Minister Paetongtarn Shinawatra suspended review of the bill, which was to have returned to the cabinet for approval. \u201cLet all issues be thoroughly examined first,\u201d she said. \u201cBecause Thailand has never had casinos before.\u201d<\/p>\n The 16 March Bangkok Post<\/a> quoted Chittawan Chanagul, a gambling researcher at Kasetsart University\u2019s faculty of economics, who said the government should heed public calls for a referendum. \u201cIt is a fair way to decide the fate of this project,\u201d she said.<\/p>\n She noted that even supporters of the ruling Pheu Thai Party, helmed by Paetongtarn, oppose legal casino gambling.<\/p>\n The Post article suggested that the issue could prove a tipping point for Pheu Thai and trigger \u201cwidespread opposition\u201d to the administration. Paetongtarn is already bracing for a no-confidence vote on 26 March.<\/p>\n Meanwhile, industry expert Muhammad Cohen<\/a> says Thailand \u201cis on the verge of squandering its extraordinary opportunity to add iconic integrated resorts to its tourism menu and become a top five global gaming market because it is not constructing the necessary legal and regulatory framework to accommodate the world\u2019s top casino operators.\u00a0<\/p>\n \u201cJapan regulated too heavily\u201d, according to Cohen, \u201cand wound up with just one successful bidder for three licences. Thailand appears to be regulating too lightly and that could have a similarly chilling impact on potential bidders.\u201d<\/p>\n Despite the pause on legislative review, on 13 March lawmakers announced the selection of four casino host sites<\/a>: Bangkok, Chiang Mai, Phuket and Chonburi.<\/p>\n<\/p><\/div>\n\u201cAn amazing marketplace\u201d<\/h2>\n
But obstacles remain<\/h2>\n
The regulatory waltz<\/h2>\n