MGM Resorts International has urged Thai authorities to adopt a competitive tax regime and permit local access to casinos as essential elements in shaping the country’s upcoming integrated resort policy. The global hospitality and gaming giant is reportedly considering an investment of US$3 billion to US$5 billion for a potential project in Bangkok, according to a report by the Bangkok Post.
Singapore’s 17% Tax Rate Held as Benchmark
Ed Bowers, President of Global Development at MGM Resorts, emphasized that new gaming markets must offer investor-friendly conditions if they are to compete with regional powerhouses such as Singapore and Macau. Bowers cited Singapore’s 17% casino tax as an effective model and warned that a higher tax burden could undermine investor interest and long-term viability.
He noted that restrictive policies, such as banning local residents from gambling, can have detrimental impacts. “We’ve seen underperformance in markets like South Korea, where locals are largely excluded from gaming floors,” Bowers explained, suggesting that local participation is key to sustainable revenue and long-term return on investment.
Bangkok Seen as a Prime Location
Bowers described Bangkok as an ideal candidate for an integrated resort due to its existing tourism infrastructure, international flight connectivity, and sizeable domestic population. He indicated that the Thai capital could host one major resort, or potentially two smaller-scale operations, depending on final policy decisions and development scope.
He also endorsed Thailand’s draft policy that limits the casino gaming area to 10% of total resort space—an approach that aligns with global standards. For context, Singapore limits casino areas to under 5%, while Japan sets a more conservative cap at 3%.
Support for Regulated Gaming to Fund Public Welfare
In addition to generating tourism and foreign investment, Bowers advocated for legalised and regulated gaming as a tool to support public welfare programs. He suggested that revenues from gaming taxes could fund education and gambling addiction treatment, ensuring a responsible and beneficial framework for the local community.
A Call for Regulatory Clarity and Business Alignment
Bowers stressed that governments looking to enter the casino market must grasp the economic fundamentals of the industry. “Prohibitive taxes or excessive restrictions may discourage serious global operators from participating,” he said. MGM, like other international firms, seeks clarity, fairness, and long-term predictability in regulatory environments before committing to multi-billion-dollar investments.
As Thailand explores the potential of opening its first legal casinos, MGM’s message is clear: a carefully crafted, investor-friendly regulatory framework could pave the way for transformative economic and tourism development, with Bangkok at the heart of it.
