BANGKOK: A leading international media outlet has published an in-depth analysis on the selection of locations for Thailand’s first Entertainment Complex project, focusing on four potential areas: Bangkok, Chonburi, Chiang Mai, and Phuket.
The report examines the strengths, weaknesses, and infrastructure challenges each location faces — key factors that will critically impact the success of this major development.
Inside Asian Gaming (IAG), a leading media outlet specialising in Asia’s gaming and casino industry, recently released an analysis offering insights into Thailand’s entertainment complex policy.
In an article published on March 30, 2024, IAG highlighted key issues regarding strategic site selection and infrastructure challenges—two critical factors that investors and operators are closely monitoring when considering these billion-dollar projects.
Although the number of licenses has not been officially confirmed, industry insiders anticipate that up to five licenses could be issued.
IAG’s analysis provided an overview of the latest developments in strategic site selection and outlined the infrastructure hurdles that lie ahead.
Earlier in mid-March, the Thai government’s spokesperson announced four shortlisted locations for the country’s first legal casino-entertainment complexes; namely Bangkok, Chonburi, Chiang Mai and Phuket.
According to an IAG survey of industry operators, Bangkok emerged as the top choice for the most part. Almost all respondents indicated it was the only location they were interested in pursuing.
It’s easy to see why investors favour Bangkok—with a population of over 17 million and more than 32 million annual tourist arrivals, the city offers a powerful demand base.
Projected gross gaming revenue (GGR) in Bangkok could reach as high as US$10 billion annually, and potentially up to US$15 billion if at least two major projects are developed.
Several potential locations for entertainment complex projects in Bangkok have been identified:
Bangkok Port – Supported by the Ministry of Transport, but regarded as a "very long-term prospect" due to the decades of development it would require.
Nong Chok District – Situated near Suvarnabhumi Airport, this area was included in an initial proposal by SKYH Entertainment Group.
IMPACT Muang Thong Thani – Already boasts major MICE (Meetings, Incentives, Conferences, and Exhibitions) facilities, hotels, and a large shopping complex.
BITEC Bangna – Located in Bangkok’s inner area, similar to IMPACT, with well-established core infrastructure.
Gaming industry expert Scott Feeney commented, "Traffic congestion in Bangkok is severe. The MRT and BTS systems are really the only effective means of getting around the city. Therefore, any selected site must be close to existing public transportation routes and should not rely on government-led infrastructure developments specifically for the project."
This observation underscores a critical challenge for the successful development of entertainment complexes in Bangkok—the need to carefully integrate with existing mass transit systems and address the city’s chronic traffic issues.
While Bangkok remains the most sought-after location for investors, there is significant concern regarding the financial viability of projects in other areas, particularly in light of the minimum investment requirement of THB100 billion (approximately US$3 billion).
Industry stakeholders told IAG that achieving a satisfactory return on investment (ROI) would be nearly impossible in Chonburi, Chiang Mai, or Phuket if projects are required to meet such a high capital threshold.
However, Hard Rock International has expressed interest in investing in Phuket. Ed Tracy, the company's Head of International Development, commented:
"I view Phuket as highly suitable for a regional-scale casino."
He added that the company has already completed financial modelling and analysis for a potential project on the island.
The legislative review process is still underway, and investors and stakeholders are eagerly awaiting clarity on the specifics of licensing and site selection—factors that will be crucial in shaping the future of Thailand’s emerging gaming and entertainment industry. - The Nation/ANN
