Thailand’s recent push to regulate casino operations in the hopes of attracting foreign operators, particularly from the United States, may not have the desired outcome, according to recent research.
A study conducted by the Institute for Gambling Research and Policy (IGRP) suggests that the stringent regulations proposed by the Thai government are likely to deter US operators from entering the market. The research, which surveyed over 200 executives from leading casino companies in the US, found that 85% of respondents were not interested in investing in Thailand’s casino industry.
One of the main concerns cited by the executives was the proposed tax rates on casinos in Thailand. The government has suggested a tax rate of up to 40% on gross gaming revenue, which is significantly higher than the rates in other popular casino destinations such as Macau or Las Vegas. This, coupled with other potential regulatory hurdles, including restrictions on advertising and marketing, has made Thailand a less attractive investment opportunity for US operators.
Furthermore, the research also highlighted concerns over the lack of a well-established regulatory framework in Thailand. Many executives expressed doubts about the ability of the government to effectively regulate the industry and protect the interests of both operators and players. Without a strong regulatory framework in place, US operators may be hesitant to enter the market due to concerns about compliance and potential legal risks.
Despite these challenges, the Thai government remains optimistic about the potential economic benefits of legalizing and regulating casinos in the country. Proponents argue that a regulated casino industry could boost tourism, create jobs, and generate significant revenue for the government. However, without the participation of leading US operators, the industry may struggle to reach its full potential.
In response to the findings of the research, the Thai government has announced that it will reevaluate its proposed regulations and tax rates in an effort to make the country more appealing to foreign operators. Whether these changes will be enough to attract US operators remains to be seen, but one thing is clear – the road to establishing a successful casino industry in Thailand may be more challenging than initially anticipated.
