However, Genting Malaysia Bhd’s Resorts World Genting (RWG) may dodge the bullet as it is expected to be the least impacted by the development, said Maybank Investment Bank (Maybank IB) in a research note.
However, the saving grace for the regional gaming giants is that it will be at least five years before the first Thai casinos are up and running.
The most likely location for the Thai casinos is the Eastern Economic Corridor, with a development period of around five years, assuming one or more integrated resort bids are approved this year, said the research house.
Maybank IB stated the opening of legal Thai casinos would have a “significant impact” on the regional gaming landscape.
“We are more concerned for Genting Singapore’s RWS, where we estimate that around 60% of gross gaming revenue (GGR) is derived from foreigners, and NagaCorp’s Naga 1 and 2, where almost all their GGR is derived from foreigners,” it said, adding only Cambodians who hold foreign passports can gamble within the country.
In contrast, RWG is expected to be least affected as less than 20% of its gross gaming revenue (GGR) is derived from foreigners, said Maybank IB.
NagaCorp was founded in 1995 by Malaysian tycoon Chen Lip Keong, who passed away last December. The Hong Kong-listed group owns and operates the largest integrated gaming and entertainment resort in the Mekong region.
Thailand to attract high-spending tourists
Thailand took its first step towards legalising casinos last week as the government looks to attract high-spending tourists to support Southeast Asia’s second-largest economy while also checking revenue leak from illegal gambling.
Its 500-member House of Representatives voted overwhelmingly last Thursday in favour of a study by a panel of lawmakers to allow casinos to be housed within large entertainment complexes.
The study found that Thailand can lift tourism revenue by about US$12 billion (RM56.7 billion) by legalising casinos and housing them within such entertainment complexes.
Deputy finance minister Julapun Amornvivat said the casino study will be forwarded to the Cabinet for a decision on whether legalising casinos is “suitable for the nation”.
Thailand is the latest nation to consider competing for a pie of the global casino industry, which IBIS World estimates generated US$263.3 billion (RM1.25 trillion) in revenue last year.
The United Arab Emirates set up a framework for legalised gaming in September, with the emirates of Abu Dhabi and Ras Al Khaimah seen as frontrunners to introduce casinos.
Galaxy Entertainment Group Ltd and MGM Resorts International have been studying potential opening of casino resorts in Thailand as a hedge against uncertain prospects in Macau, which raked in US$22.75 billion (RM107.5 billion) in casino revenue last year, according to a Bloomberg report last Friday.