MGM Resorts International and Galaxy Entertainment Group Ltd. are looking into the possibilities of establishing casino resorts in Thailand. Galaxy, led by billionaire Lui Che-woo, is also considering gaming establishments in the United Arab Emirates (UAE).
Thailand’s Casino Prospects:
Thailand, known for its vibrant tourism industry, is contemplating the legalization of casinos. This has attracted the interest of international operators like MGM Resorts and Las Vegas Sands Corp. Chinese tourists, who accounted for a significant portion of Thailand’s international visitors pre-pandemic, have played a vital role in its tourism sector. However, the reopening of China and increased outbound travel may impact Thailand’s tourism industry.
Galaxy Entertainment’s Expansion Plans:
Galaxy Entertainment, already established in Macau, has set its sights on the UAE and Thailand. The company is exploring the potential of opening gaming establishments in the UAE, which could potentially generate substantial gaming income. With offices already set up in both countries, Galaxy aims to gather local knowledge and promote its operations in Macau.
MGM Resorts’ Interest:
MGM Resorts, through its division MGM China, is actively considering entering the Thai market. The company has a base in Thailand and engaged with a Thai parliamentary committee investigating the legalization of casinos. Additionally, MGM is overseeing an entertainment complex in Dubai, signaling its interest in the UAE market.
The Asian Gaming Industry’s Outlook:
Macau experienced a tourism boom following China’s reopening, leading to a significant recovery in gaming revenue. However, experts predict that the boom might fade as pent-up demand subsides, and more Chinese tourists travel abroad due to increased air capacity. This shift could impact Macau’s gaming income and potentially influence operators’ interest in exploring other markets.
The UAE’s Potential:
The UAE, with the possibility of legalizing casinos, has caught the attention of operators like Galaxy Entertainment. It is speculated that the UAE could outperform Singapore in terms of gaming income, potentially reaching up to US$6.6 billion annually. If the UAE moves forward with casino legalization, it could attract significant investments and become a prominent player in the Asian gaming industry.
MGM Resorts International and Galaxy Entertainment Group Ltd. are actively exploring opportunities to establish casino resorts in Thailand and the UAE. These ventures align with the potential future legalization of casinos in both countries. However, the Asian gaming industry’s landscape remains dynamic, with factors such as changing tourism patterns and outbound travel impacting the market. As operators seek a competitive edge, they are positioning themselves strategically to capitalize on emerging opportunities. The outcomes of these endeavors will shape the future of the gaming industry in Asia and have implications for both local economies and international operators.