Galaxy Entertainment Group (GEG) plans to bid for a Bangkok IR license in Thailand, per Goldman Sachs. Targeting Bangkok for its tourism potential.
Macau-based gaming giant Galaxy Entertainment Group (GEG) has signaled its intention to bid for an integrated resort (IR) license in Thailand, focusing exclusively on a Bangkok location, according to a recent report from Goldman Sachs.
Galaxy's interest comes as Thailand progresses towards legalizing casinos, with a draft bill currently under review by Parliament. If approved, the bill could trigger a Request for Proposal (RFP) process as early as mid-2025, allowing major international operators like Galaxy to submit their bids. Goldman Sachs, based on observations from their November 2024 Non-Deal Roadshow (NDR), reports that Galaxy views Thailand as a potentially lucrative market, estimating a conservative annual gross gaming revenue (GGR) of $3-5 billion.
The timeline for legalization anticipates potential approval of entertainment complex legislation by May 2025, potentially paving the way for legal casinos by the end of the decade. This timeline aligns with previous targets of opening an IR by 2029, ahead of Osaka.
While Thailand plans to issue around five gaming licenses, with three outside of Bangkok, Galaxy has strategically chosen to concentrate solely on the capital. The company believes Bangkok’s status as a global tourism hotspot offers greater certainty for return on investment. This focus aligns with Thailand's recent tourism success, with over 35.54 million foreign tourists visiting in 2024, a 26.27% increase year-on-year, driven by relaxed entry rules and visa exemptions.
Goldman Sachs also revealed that Galaxy is open to forming partnerships with local businesses or companies with strong regional ties to strengthen their bid. This collaborative approach could prove beneficial in navigating the local landscape and securing a license.
Furthermore, the Thai government is reportedly considering legalizing online gaming, a development that Goldman Sachs believes could significantly boost the market. Drawing parallels with the Philippines' experience, estimates suggest a potential online gaming market size of $2-3 billion in Thailand. This dual approach, encompassing both land-based and online gaming, could position Thailand as a leading gaming jurisdiction in Asia, rivaled only by the Philippines.
Experts at the Thai Entertainment Complex Summit, attended by Asia Casino News (ACN) as lead media partner, highlighted Thailand’s potential to draw gamblers from large existing markets such as China, India, and Russia.
Experts doubled-down on Thailand’s appeal in drawing more heavily from nations with existing gaming interest.
Ben Lee of IGamiX Management and Consulting Ltd. suggested Thailand would capitalize on this existing demand, while Lilly Choi-Lee of TravConsult noted the distinct cultural and entertainment offerings of Thai IRs would differentiate them from regional competitors, particularly appealing to Chinese gamblers. CLSA Ltd. analyst Jeffrey Kiang further emphasized the importance of catering to Thailand's diverse existing tourist base with unique experiences, rather than solely pursuing new visitors, to establish a distinct identity for Thai integrated resorts.
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