JP Morgan and Bangkok's annual revenue is $ 2. 5 billion

Thailand is strictly prohibited from gambling other than stat e-owned horse racing and stat e-owned lottery, but thanks to the important preliminary framework of the Diet approved by Prime Minister Sletta Tabishin in April, a refresh button will soon be pushed in this field. Probably.

This bold framework contains up to five IR licenses throughout Thailand, located within 100 km from the international airport, with a minimum investment of 100 billion ties ($ 2. 8 billion).

According to JP Morgan's latest evaluation, Bangkok IR is expected to reach $ 2. 5 billion to $ 3 billion annually, and potential revenue is expected to reach $ 5 billion.

Foreign tourists who become driving force

Everyone knows the fact that the IR is a powerful driving force for development and dynamically providing tourism, employment creation, and economic growth opportunities.

It is also well known that tourists fascinated by the gorgeous equipment provided by IRs and unique experiences will run on consumption and contribute to the great revitalization of the local economy.

In accordance with this concept, the investment bank argued that the driving force of the expected increase in profits in Thailand is a foreign tourist expected to contribute to more than half of the revenue.

According to this analysis announced on Wednesday, based on three major population groups: residents of Bangkok, Thai tourists from outside the Tokyo metropolitan area, and foreign tourists, the possibility of IR revenue called "Entertainment Complex" locally. The detailed outlook is about.

According to the report, if one or two IR licenses are issued in Bangkok, the annual revenue can reach $ 2. 5 billion to $ 3 billion.

However, if Bangkok has increased the license to three, the revenue may increase to $ 5 billion.

"Naturally, the total gaming income (GGR) from the casino is only 5 % of the total floor area.~Despite only 5 % of the total floor area, the total gaming income (GGR) from the casino is thought to account for more than 90 % of the total income, and the income from foreign tourists accounts for more than 50 %. It is estimated.

The Thai gaming market reaches $ 5 billion in 2033

The Thai gaming market in 2033 is expected to be $ 1. 5 billion to $ 5 billion annually.

For comparison, Macau's casino revenue in 2023 is $27 billion, and non-gaming revenue is $4 billion.

Singapore, which recently gave the green light to cashless gambling in its casinos, will follow with $7 billion (including $1. 8 billion from non-gaming), the Philippines with $5 billion, and South Korea with $2 billion.

Just last month, it was announced that the Philippines is waiting on the construction of a new integrated resort under Alliance Global's Travelers International Hotel Group, which is scheduled to break ground in 2025.

Singapore, a valuable model for Bangkok

JP Morgan compared Bangkok and Singapore, highlighting similarities in population and city size, while highlighting key differences.

"Thailand offers a more diverse range of tourist attractions than Singapore, which could result in a lower conversion rate of tourists and locals to casinos.

Furthermore, the lower income levels of Thai locals compared to Singaporeans could reduce local spending, especially given the higher entrance fees proposed for Thai casinos.

Despite these challenges, JP Morgan believes Singapore's success in integrating casinos into its entertainment and tourism sectors is a valuable model for Bangkok.

What to expect from Thai IRs

The casino bill currently being debated in Thailand's parliament proposes a mixed-use entertainment facility with 5% of the total floor area as gaming area.

It would also provide operators with a 30-year license. The latter would generate annual EBITDA of $400 million to $1. 5 billion, with profit margins of 25% to 35%.

Such a development could boost Thailand's GDP by up to 1%.

IRs would also attract international investors, including a range of global gaming giants such as Las Vegas Sands, MGM Resorts, Wynn Resorts and Galaxy Entertainment Group. For comparison, Macau's casino revenue in 2023 is $27 billion, with non-gaming revenue at $4 billion.