A proposal from Thailand’s Council of State that locals should have the equivalent of US$1.5 million in the bank before they could gamble in any casinos established there, has the potential to shift the economic focus of the country’s casino-legalisation push, say a number of observers in comments to GGRAsia. In the view of several, it could dampen investment interest among international casino brands.
The high-bar economic qualification for locals was contained in an updated version of the country’s draft Entertainment Complex Bill.
Ben Lee, managing partner at industry consultancy, IGamiX Management & Consulting Ltd, told GGRAsia: “The fixed deposit [proposal] of THB50 million or US$1.5 million… is pernicious and will absolutely drastically remove any local play, as even the people with that amount of spare cash will likely keep travelling elsewhere for their entertainment.”
He added: “Removing the potential local business does change the equation substantially as can be seen in the moribund South Korean gaming industry.”
South Korea’s casinos – with the exception of Kangwon Land – are all foreigner-only venues.
Industry commentator and former casino executive Daniel Cheng told GGRAsia regarding the high bar proposed in Thailand for locals play: “If that becomes part of the law, I see many investors pulling out, as that undermines the domestic market which is a fundamental and staple source of revenue.
“Having said that, this [the draft bill] is only a recommendation by [Thailand’s] Council of State and the decision to adopt it rests with the government.”
The Global Wealth Report 2024 by banking group UBS, measures country-by-country, levels of net-worth wealth, defined as “the value of financial assets plus real assets – principally housing – owned by households, minus their debts”.
For Thailand it estimated there were about 100,000 U.S. dollar millionaires in 2023, with that cohort likely to rise by circa 24 percent to about 123,500 by the year 2028.
Brokerage CLSA Ltd, said that it formed the view that raising funds via gambling by tourists had always been at the centre of Thailand’s casino-legalisation proposal, and therefore it was “not surprised” to learn of the proposed economic qualification for locals.
CLSA analyst Jeffrey Kiang told GGRAsia in response to our enquiry: “We have been arguing these complexes will be very tourist-focused.”
He added: “This news appears to us” a sign that “the clear targets of these casinos are tourists rather than locals, which we are not surprised to see.”
Mr Kiang further remarked: “Raising the entry barrier for locals [to go] into casinos resembles [policy] in Singapore. This further echoes our view that Thailand will take Singapore as the model in terms of developing [an] integrated resort industry.”
The fresh version of Thailand’s draft law retains the initial draft’s proposed requirement for Thais to pay THB5,000 (circa US$148) as a casino-entry levy. That is more expensive than Singapore’s SGD150 (circa US$112) 24-hour pass for its locals wishing to use one of the city-state’s two casinos.
Mr Cheng, himself a Singapore national, thought the proposed THB5,000 entry fee “untenable”.
He told GGRAsia: “It should be at most THB500 if you take into consideration the relative per capita purchasing power between Thailand and Singapore.”
Industry consultant Mr Lee suggested: “The proposed entry levy of THB5,000 should not be a deterrent to the middle and upper tier players. It is still better than driving three or more hours to the nearest border casinos plus border crossing hassles.”
