UAE and Thailand could add at least USD 7 billion to global GGR: MS
The large new gaming market is “attractive and additive” to global gross gaming revenue (GGR), with at least US$7 billion expected to be generated if the United Arab Emirates (UAE) and Thailand legalize casino gaming. There is a possibility of generating GGR.
That’s what investment bank Morgan Stanley said Thursday in a report titled “Global Gaming: Cyclical Bottoms, Attractive Returns, and New Markets.”
“We estimate the GGR of Thailand and the UAE to be approximately USD 3 billion to USD 5 billion each,” the agency said. “While tax cuts could make returns on invested capital more attractive, there are still a lot of variables in tax returns,” he added.
The report said large new games markets are “attractive based on historical revenues” and tend to “offer attractive growth over several years.”
“Markets such as Japan, Thailand and the UAE could potentially add tens of billions of dollars,” the report said. [U.S.] In our view, it’s worth GGR dollars. ”
Furthermore, “Historically, the impact of new gaming markets cannibalizing existing gaming markets has been limited. For example, Singapore opened two casinos in 2010, with GGR of USD 6 billion in 2011.” However, Macau’s GGR in 2011 still increased by USD 9.9 billion (+42% year-on-year).
In July, the website of the UAE’s gambling regulator, the General Commercial Gambling Regulatory Authority (GCGRA), went live, and the agency also announced the country’s first lottery license.
“Based on visitor numbers and population, we believe the UAE has the potential to generate GGR of USD 3 billion to USD 5 billion annually. However, this depends on whether local residents will be allowed entry into casinos. ,” Morgan Stanley said.
He added: “We see potential in the UAE, which is one of the countries with the highest number of air arrivals.” [volumes] There are more five-star hotels in the world than there are in Singapore, and the ultra-wealthy population is growing rapidly. ”
The bank said the key supply markets for the UAE’s casino industry “will be Western Europe and South Asia, but geopolitical risks could pose a significant risk to growth and valuation.”
However, the agency noted that the UAE “could ultimately have more integrated resorts (IRs) than Singapore”, although the overall number of licenses “has not yet been determined”.
ongoing projects
Global gaming operator Wynn Resorts Limited, the parent company of Macau casino operator Wynn Macau Limited, is currently developing a casino resort project, Wynn Macau, in Ras Al Khaimah, one of the emirates of the UAE.・Al Marjan Island (rendered image) is currently being developed.
The project is expected to open in 2027 and is said to be a US$3.9 billion venture, with Wynn Resorts taking a 40 percent stake and involving local partners.
The UAE is made up of seven emirates. These are Abu Dhabi, Dubai, Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah, and Fujairah.
Bill Hornbuckle, CEO of US-based MGM Resorts International, recently told an investment forum that the group had applied for a casino license in Abu Dhabi.
MGM Resorts, the parent company of Macau casino operator MGM China Holdings, is already developing a hotel project in Dubai. The proposed site is on Jumeirah’s Porto Island, a reclaimed land just north of the iconic Burj Al Arab building.
MGM Resorts Chief Financial Officer Jonathan Halkyard said this week that the Dubai project does not include a casino, but is “approximately 200,000 square feet.” [18,580 sq. metres] At a podium reserved for either “retail, conventions or conferences, or games.”
MGM Resorts is also developing a casino resort in Osaka, which is scheduled to open in 2030. The group has also expressed interest in investing in a casino project in Thailand if the Southeast Asian country legalizes casino gambling.
If it goes ahead, those investments would be made through MGM China, Hornbuckle said.
most pursued market
If legalized, Thailand’s casino industry would have “more attractive conditions” and could become one of the “most popular markets,” Morgan Stanley suggested.
“Thailand has the potential to become a market with an annual GGR of USD 4 billion to USD 6 billion,” the report said.
“Thailand is one of the most pursued markets for gaming companies as it has good infrastructure and is one of the most popular tourist destinations in the world,” the agency said.
He added: “Casino spending per visit may be lower than Singapore, but we believe it is better than South Korea or Malaysia.Local residents are also allowed to enter casinos, but there is an entrance fee and only adults Average spending per person may be lower than in the Philippines or Malaysia.
According to the bank, conditions for Thailand’s gaming license include “the lowest gaming tax level in Asia (17%), an investment size of USD 3 billion per integrated resort project in Bangkok; It looks attractive.” +10 year license period”.
The report suggested that the Thai government is “considering the construction of up to seven IRs across the country, three of which will be in Bangkok.”
A number of casino brands, including Macau-based operators, have expressed interest in investing in Thailand.
Morgan Stanley predicts that Thailand’s first casino resort will “open by 2030 and the casino law will be passed in 2025.”
Although the number of licenses “has not yet been finalized”, the agency said it has identified “potential venues for the IR project, including two in Bangkok and one each in Chiang Mai, Phuket and Chonburi (Pattaya) on the Eastern Economic Corridor.” We think there is a possibility that there will be five locations.” .