MGM China Said to Be Considering Bid for Thai Casino License

According to reports, MGM China wants to compete for a casino license in Thailand in order to promote its Macau locations to Thai travelers.

In addition to promoting travel to Macau in Thailand, Pansy Ho, the co-Chairperson of MGM China, is rumored to have met with Governor Thapanee Kiatphaibool of the Tourism Authority of Thailand (TAT) to discuss possible opportunities for the gaming company to integrate into Thailand's rapidly developing entertainment district scheme, which includes plans for casinos.

"Iwan Dietschi, senior vice-president of hospitality at MGM China, an operator of two integrated resorts in Macau, said the Thai market is among its top priorities as it represents the company’s largest group of visitors from Southeast Asia and the fastest growing market,”  reports The Bangkok Post.

MGM Resorts International (NYSE: MGM), a Las Vegas-based company, owns 56% of MGM China, which operates two integrated resorts in Macau.

 

MGM China's Diversification Efforts Include Thailand

It's not a given that MGM China will apply for a gambling license in Thailand, and some analysts predict that if the Southeast Asian nation sets rules, some major operators may find those procedures unsettling.

Nevertheless, Thailand can be a key channel for the gambling firm to broaden its customer base outside of Macau. Traditionally, mainland Chinese and Taiwanese citizens have contributed the most to Macau's tourism industry, with smaller amounts coming from other nations in the region, such as South Korea. On the other hand, more people are traveling to the Asia-Pacific casino center from other nations.

According to the Macau Government Tourism Office (MGTO), through the first five months of this year, tourists from Thailand made up the fifth-largest block of arrivals to Macau. This demonstrates that MGM China's attempts to entice more Thai visitors to Macau are legitimate.

Since May was the strongest month for the six Macau operators' combined gross gaming revenue (GGR) since January 2020, those efforts are now being expedited. That profit was largely driven by mass-market participants, who are probably primarily Thai tourists visiting Macau. MGM China has a sales representative in Thailand, and more related staff members are anticipated there soon.

 

MGM Is Considering Thailand

Although no specific information has surfaced as of yet, MGM Resorts International has already made it apparent that it is interested in Thailand. It could make more sense for MGM China to represent the massive gaming company in Thailand, given the US-based operator is now developing an integrated resort in Osaka and its China affiliate is searching for strategies to increase the number of guests to its Macau casino hotels.

Although that hasn't been verified, it is certain that Thailand is working hard to have legislation governing entertainment districts passed before the end of the year, and that five places have already been chosen for such venues. That might open the door for casino bidding to begin as early as next year, and building might then begin shortly after.

Although the precise number of entertainment centers that will be authorized is unknown, it is certain that those establishments, given the presence of a casino, have the potential to stimulate Thailand's economy. Each entertainment district is anticipated to require a minimum investment of $2.75 billion, a sum that many of the biggest names in worldwide gaming could readily afford.