Macau casino operator Galaxy Entertainment (0027) is considering expanding into Thailand and is evaluating an investment worth billions of US dollars in a proposed casino and entertainment complex in Bangkok, according to a report.
However, it emphasized that effective regulatory and oversight mechanisms are necessary to address social concerns over gambling legalization and ensure the industry grows responsibly.
The report quoted Kevin Clayton, chief brand officer at Galaxy Resorts Thailand, as saying that Bangkok deserves a landmark integrated entertainment complex.
Clayton said if Thailand's tourism strategy is successfully implemented, foreign arrivals could rise by 39 percent to 50 million annually, boosting tourism revenue from 3 trillion baht (HK$690 billion) to 5 trillion baht and increasing its gross domestic product contribution from 20 percent to 30 percent, according to the report.Clayton added that the company aims not only to bring billions of US dollars in investment to Thailand but also to collaborate with regulators to prevent money laundering and effectively manage gambling-related issues.
An overwhelming majority of respondents in a public hearing has backed Thailand's plan to legalize casinos, with the government signaling it's open to incorporating suggestions to ease the high entry barrier for the locals.About 80 percent of the participants agreed with the overall content of a draft bill to pave way for casinos to be housed inside large entertainment complexes. More than 70,000 people submitted their opinions and recommendations during the February 28-March 14 public hearing held by the Finance Ministry, according to a government statement.
Tourism-reliant Thailand aims to pass the controversial casino bill this year to attract more foreign investment and lift tax revenue, while also tackling illegal gaming venues. But the move has been criticized by the opposition and groups fighting to tackle gambling addictions among Thais, saying casinos will largely benefit big businesses and foreign companies.Aside from Galaxy Entertainment, MGM Resorts International, the majority owner of MGM China (2282), is said to be studying potential opportunities in Thailand as a hedge against uncertain prospects in Macau.
Las Vegas Sands, the parent of Sands China (1928), has said it would be interested in expanding to Thailand.Galaxy's shares closed down 1.23 percent at HK$32.05 yesterday.
