Thailand takes another flutter at casinos, Las Vegas Sands wants to play

The Land of Smiles expects more than 26 million visitors this year, nearly 5 million of them from China, with Malaysia, Russia, Japan, South Korea and India, all restricted casino markets, in the next five slots. That’s an awfully tempting target, and after a fall in visitor arrivals and tourism revenues last year, Thailand may be ripe to try its luck with casinos.

It’s not just about tourists Thai nationals bet billions at underground casinos in Thailand and legal casinos in neighboring countries.

Donaco International, which this month completed its takeover of Star Vegas Casino and Club, the largest of ten casinos just across border in Poipet, Cambodia, reported that punters bet nearly $4 billion there in the fiscal year ended June 30. Star Vegas customers are nearly all Thais, and, thanks to improvements in road links to Bangkok and the military government’s crackdown on illegal casinos, plus more vigorous marketing, revenue rose 46.5% from the previous 12 months. The combination of locals and tourists makes Thailand an extremely tempting gaming market.

Thailand’s latest outbreak of casino speculation began in June. Two members of the post-coup military government’s National Reform Council suggested casino to bolster tourism. The pair said they represented about a dozen members of the advisory panel and planned to submit a more detailed proposal to the government.

“It’s a stupid time to raise [casino legalization] with the country facing many more important social and economic issues,” a source in Thailand familiar with regional gaming that requested anonymity says. Many saw the NRC members launching a trial balloon for interests higher up in the regime.

Thailand’s Tourism and Sports Minister Kobkarn Wattanavrangkul was diplomatic, expressing studied ambivalence toward casino legalization. Like others in the Thai tourism industry that I’ve talked to about gaming legalization, she contended that casinos would change the character of tourism, reshuffling the mix without significantly increasing numbers. Other Thai influentials voiced support for casinos, including National Police Chief General Somyot Poompanmoung.

After letting the debate simmer for a week, the head of the military regime, Prime Minister General Prayut Chan-O-cha, said casinos won’t happen on his watch and told his top cop to keep quiet on the issue. Members of Prayut’s inner circle and other leading politicians said that the government didn’t have time to waste on casinos with a new constitution and aid to drought-stricken famers on the agenda.

Prayut’s smackdown wasn’t enough to dissuade Thai journalists visiting Singapore to ask Las Vegas Sands about a casino in Thailand. “We want to invest in Thailand if we are given permission,” LVS vice president for communications in Singapore Krist Boo said, adding, “It must be the kind of integrated resort as in Singapore.”