Maybank’s bet: Thailand casinos could hit jackpot, boosting GDP

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Maybank Securities, a unit of Malaysia-based Maybank, forecasts that the potential introduction of casinos in Thailand with gambling facilities could yield an annual revenue of 187 billion baht, equivalent to about 1% of Thailand’s gross domestic product (GDP). The forecast, based on an assessment carried out by Maybank’s gaming analyst and tourist arrivals in Thailand in 2019, anticipates the first complex to commence operation by the fiscal year 2029.

 

The proposed tax rate on Thai casinos, standing at 17%, is considered appealing when compared to regional counterparts such as Singapore, Malaysia, the Philippines, and Macau, which impose a mass market rate ranging from 25-40%. This comparison was drawn by tourism analyst Boonyakorn Amornsank.

 

In the forthcoming weeks, the Thai government has plans to make a draft bill public for deliberation in parliament. The bill concerns the establishment of entertainment complexes comprising hotels, shopping malls, and casinos, stated Boonyakorn Amornsank.

“Following the approval of the legislation, we expect the first complex to be operational by the fiscal year 2029, considering an estimated three-year construction period.”

Boonyakorn referenced Singapore’s first casino, which required six years to launch from its proposal stage.

 

The proposal envisions the construction of five to eight complexes across several provinces. The first among these is likely to be established in the Eastern Economic Corridor, a region offering business incentives to attract foreign direct investment.

 

The complexes, likely to host thousands of hotel rooms, are anticipated to primarily attract gamblers, making the profitability of the rooms uncertain, according to Boonyakorn. He also projected a positive impact on tourism from these complexes, though not in the initial stages.

 

Maybank Securities identified three beneficiary groups from this development: contractors and banks during the construction phase, the property sector with a potential rise in prices, and commerce, hotels, and airports bolstered by an increase in foreign tourists, reported Bangkok Post.

 

Boonyakorn referenced Singapore’s property market, which witnessed a 30% year-on-year increase in prices in 2007 before the inauguration of the first casino in 2010.

 

“Airports of Thailand is likely the biggest beneficiary. Hoteliers with properties near these complexes are unlikely to benefit much from a potential hike in room rates.”

 

by Alex Morgan

Picture courtesy of The San Diego Union-Tribune

 

Source: The Thaiger 2024-04-09

 

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[sqwakvfr]

The Analysts at Maybank need to study other countries with casinos.  Casino(s) will have a positive and negative impact.  Gambling addiction could explode in LOS if casinos are built.  I have been to S. Korea where there are a fair of number of casinos.  One of the most impressive casinos was Paradise City in Incheon.  I have also been to a city casino near the train station in the middle of Seoul.  At this particular casino only foreigners were allowed.  I later found out some other casinos in S. Korea allow Korean nationals only 4 visits per month.  Spoke to a local and he told me this was to curtail gambling addiction.  Just imagine a casino in Pattaya or BKK?  Everything will be just great?   

Edited April 9 by sqwakvfr

[John Drake]

Yep, gambling, the thing that has made Sihanoukville the sewer it is today.

[Guderian]

Good. So they may as well drop their silly plan to tax foreigners' pensions then, as it's not going to raise even a fraction of 187 billion Baht, lol.

[Photoguy21]

1 hour ago, sqwakvfr said:

The Analysts at Maybank need to study other countries with casinos.  Casino(s) will have a positive and negative impact.  Gambling addiction could explode in LOS if casinos are built.  I have been to S. Korea where there are a fair of number of casinos.  One of the most impressive casinos was Paradise City in Incheon.  I have also been to a city casino near the train station in the middle of Seoul.  At this particular casino only foreigners were allowed.  I later found out some other casinos in S. Korea allow Korean nationals only 4 visits per month.  Spoke to a local and he told me this was to curtail gambling addiction.  Just imagine a casino in Pattaya or BKK?  Everything will be just great?   

Considerably more than now going bankrupt and possibly turning to crime to pay their debts.

[Mavideol]

Chines "mafia investors" are waiting for the green light.... Thailand should look at what they did in Sihanoukville, but greed will make them blind

[Will B Good]

There is only one aspect of this policy receiving close scrutiny from the politicians ....and that is how do they get their snouts in the trough?

[Purdey]

Maybank needs to look at the revenue from gambling (and alcohol) in its own Muslim backyard. Illegal betting syndicates now take a big chunk of the legitimate businesses away and cause the government to lose some RM3 billion (S$980 million) in tax revenue annually. It is a gamble that the government cannot win.

[IAMHERE]

To prevent gambling addiction the Casinos should only be open from 11AM to 2PM and then from 5PM to 11:59PM. If it works for alcoholics should work for gamblers. 

[Aussie999]

A "jackpot" for the government  and casino owners, more poverty for those that the government has a responsibility to protect.