Economy MGM Resorts Eyes $3-5 Billion Investment in Bangkok Casino

[snoop1130]

Photo courtesy of Macau Daily Times

 

MGM Resorts International is advocating for Thailand to establish a competitive casino tax rate similar to Singapore’s and to permit a substantial local presence in casino complexes. This move is part of a broader strategy to boost tourism and stimulate economic growth in Thailand, with the company considering a hefty investment of US$3-5 billion in a potential casino development in Bangkok.

 

Ed Bowers, MGM Resorts' President of Global Development, stressed the importance of aligning emerging markets with regional competitors by adopting attractive casino tax rates. Singapore, with a 17% tax on casino gross gaming revenue, serves as a model for MGM Resorts, while Macau and Japan impose significantly higher rates of 40% and 30%, respectively.

 

Bowers pointed to examples in South Korea, where casino resorts have struggled due to restrictions on local visitors. A particular resort in Incheon is reportedly for sale due to financial difficulties stemming from low local patronage.

 

Bowers also emphasised the necessity of setting reasonable entry fees for locals visiting Thai casinos, suggesting a rate similar to Japan’s 1,400 baht. He underscored that a well-regulated casino industry can address gambling-related issues and generate funds for public programs through taxes.

 

The economic advantages of developing casino resorts, such as job creation, are a central component of MGM Resorts’ investment strategy. These resorts not only boost tourism and local economies but can also contribute to managing gambling challenges.

 

In terms of site selection, Bowers indicated a preference for large-scale casino resorts in Bangkok, given its appeal to international tourists. He argued that while a single large integrated resort might suffice for a major city, smaller facilities could support more casinos in Bangkok.

 

Ideal investment locations for MGM Resorts include areas with significant population density, easy airport access, and robust public infrastructure, alongside being iconic tourist destinations. Bowers noted that Thailand’s draft for entertainment complexes, which limits casino space to 10% of the total area, is reasonable compared to Japan’s 3% cap and Singapore’s sub-5% allocation.

 

MGM Resorts is targeting a 5-10% casino space allocation depending on government policy and market demand. For context, in locations like Philadelphia, due to high tax rates, a larger casino area is often required. Conversely, in competitive markets like Las Vegas, less than 10% of space is devoted to casinos.

 

He cited Singapore’s oligopoly model, where two major resorts generate substantially more gaming revenue than multiple resorts in Las Vegas.

 

MGM Resorts, renowned for its integrated resorts globally, operates in locations including Macau and is set to launch MGM Osaka by 2030. The company is seriously considering expanding into Thailand’s emerging market with a significant casino investment.

 

  Adapted by ASEAN Now from The Thaiger 2025-05-21

 

 

[KireB]

This is fascinating news for Thailand's tourism and economy! MGM Resorts' push for a Singapore-like 17% casino tax rate and substantial local access really shows they're serious about a multi-billion dollar integrated resort in Bangkok. It makes sense, given how much more revenue Singapore's two resorts generate compared to many in Las Vegas due to their more favorable tax and market conditions.

The preference for Bangkok as a prime location is no surprise – it's a global tourist hub with great infrastructure. And the 10% casino space limit in Thailand's draft bill seems quite reasonable when you compare it to Japan's 3% or Singapore's sub-5%. It looks like they're aiming for a balanced approach to boost the economy while managing potential social impacts. It'll be interesting to see how this all plays out.

[redwood1]

2 hours ago, KireB said:

This is fascinating news for Thailand's tourism and economy! MGM Resorts' push for a Singapore-like 17% casino tax rate and substantial local access really shows they're serious about a multi-billion dollar integrated resort in Bangkok. It makes sense, given how much more revenue Singapore's two resorts generate compared to many in Las Vegas due to their more favorable tax and market conditions.

The preference for Bangkok as a prime location is no surprise – it's a global tourist hub with great infrastructure. And the 10% casino space limit in Thailand's draft bill seems quite reasonable when you compare it to Japan's 3% or Singapore's sub-5%. It looks like they're aiming for a balanced approach to boost the economy while managing potential social impacts. It'll be interesting to see how this all plays out.

 

Yea but most Singaporeans are pretty well off and can afford to lose money...Most Thais can not afford to lose money......99% are guaranteed to be losers in casinos....Even the winners will be losers over time.