MGM Wants Lower Taxes and Local Access in Thailand

While MGM Resorts International is closing in committing a major investment in Thailand’s casino market, the company has called on lawmakers to create investor-friendly conditions nevertheless. Ed Bowers, President of Global Development at MGM, has suggested that Thailand adopt a tax rate similar to Singapore’s 17%, much lower than Macau’s 40% or Japan’s 30%.

Good to know

• MGM prefers tax rates around 17% to stay competitive with other Asian markets.
• A strict entry rule for locals was dropped after lawmakers found it would block most adults.
• Bangkok could host two casinos and still beat Singapore in revenue, analysts say.

Bowers also emphasized the need for local residents to have easy access to casinos. Thailand has considered placing restrictions on local gamblers, including a proposed THB5,000 ($140) entry fee. A more severe “millionaire clause,” which would have limited entry to those with assets above THB50 million ($1.5 million), was abandoned when lawmakers realized it could exclude most Thai adults.

Bowers warned that models relying only on tourists, such as Inspire South Korea, often struggle. That $1.6 billion property posted a $104 million loss in its first year and was eventually seized by Bain Capital from Mohegan Gaming. The asset is now up for sale.

Bangkok seen as a strong location

MGM sees Bangkok as an ideal site for an integrated resort. With a population of 11.5 million and high visitor traffic through Suvarnabhumi Airport — which handled nearly 61 million passengers last year — the city has the infrastructure needed to support a large-scale casino project.

Gaming expert Bo Bernhard believes that two casino resorts in Bangkok could outperform Singapore in terms of revenue and become a top destination in Asia.

MGM already operates in Asia, with properties in Macau and a new resort under construction in Japan. It hopes to expand its reach into Thailand as soon as legislation allows.

The post MGM Wants Lower Taxes and Local Access in Thailand appeared first on iGaming.org.