Thailand’s casino legalization won’t affect Vietnam market: Grand Ho Tram CEO

According to Walter Power, CEO of Grand Ho Tram Resort, Vietnam’s gaming sector is unlikely to be significantly impacted by Thailand’s impending gaming industry deregulation.

With a proposed gaming draft legislation that contains a 17 percent gaming tax and projections that Thais will pay three-quarters of the spending at future entertainment complexes, Thailand is currently moving toward legalizing gambling.

Power, a multi-country gaming industry veteran, downplayed worries about market cannibalization if Thailand builds integrated resorts. Instead, he suggested that Singapore might be more impacted if high rollers who are currently in Malaysia or Singapore decide to go elsewhere. Power spoke at the 6th ASEAN Gaming Summit.

He highlighted the need for a strong local component for the development of integrated resorts, mentioning location, management, branding, and financial strength as crucial components. He emphasized the uncertainty surrounding Thailand’s emphasis on local or non-local markets.

Power emphasized Macau’s success by pointing out its proximity to the populous Guangdong Province in addition to its Western-style integrated resorts. He made a comparison to Marina Bay Sands in Singapore, which had to put a greater emphasis on slot machines than gaming tables in order to draw in Malaysian patrons.

Concerning regulatory challenges, Power questioned the effectiveness of Vietnam’s 35% gaming revenue tax, which affects the operator’s ability to provide player incentives and overall property efficacy. In order for Ho Tram to stay competitive in the market, he underlined the need of real estate investment and the need to replace the outdated slot machines.

Original story by: Asia Gaming Brief