Thailand’s initial casino regulations are unlikely to be strong enough to lure regulated US operators into the market, according to Seaport Research Senior Analyst Vitaly Umansky.
In a Friday note examining the growth prospects of US-based Wynn Resorts, Umansky points to Thailand as a jurisdiction in which the company has expressed interest but suggests it may not prove a suitable option in the near-term.
“This market is too early in the process to gauge if Wynn could eventually be involved, but at present, our thinking on Thailand is that the market will not be ready for the US regulated operators to be involved,” he wrote.
Wynn and fellow US-based operators MGM Resorts and Las Vegas Sands have all expressed interest in Thailand although they have also remained circumspect when commenting on the country’s prospects – particularly in regard to the quality of legislation.
In LVS’s 1Q24 earnings call, Chairman and CEO Robert Goldstein described Thailand as a “very, very exciting market” but added, “It’s early days … we still have work to do with the numbers and understanding it.”
Wynn, meanwhile, is pushing ahead with its integrated resort development in Ras Al Khaimah in the UAE, with Wynn Al-Marjan to become the region’s only casino when it opens in early 2027.
According to Umansky, Wynn’s UAE property could generate US$300 million in attributable cash flow annually for the company but also warned the addition of any more casino resorts could prove impactful.
“We see the market being able to handle two integrated resorts,” he said. “The key risk to the property would be a casino opening in Dubai (vs in Abu Dhabi which is more likely).”
MGM Resorts has itself expressed interest in opening a casino in Dubai, where it is currently developing three MGM Resorts owned hotel brands, but has also stated that Abu Dhabi is of interest should Dubai opt against allowing gaming.
