Thai casino resorts could top Asia in EBITDA margins: Maybank
Thai casino resorts could have the highest margins on earnings before interest, taxation, depreciation and amortisation (EBITDA) in Asia, according to a Monday report from Maybank Securities (Thailand) PCL, as reported by media. The proposed entertainment complex policy could unlock significant economic potential, projected to reach about 278 billion baht in annual revenue, which it suggested would be “the fourth largest in Asia”.
Thailand’s proposed tax “attractive”
According to the report, Thailand’s casino resorts EBITDA margins could reach between 34 percent and 49 percent, outperforming those in Macau and Singapore. This is especially because Thailand’s proposed 17 percent tax is “attractive” compared to its peers. Tax rates in Macau and Singapore on mass-market play range from 25 percent to 40 percent. The tax rates on gross gaming revenue (GGR) have been classified as an important variable that will affect the EBIDTA margins of casinos. As per media reports, Maybank’s analyst wrote, “There are multiple factors – licence fees, wages, etc. – affecting EBITDA margins but the largest is generally the casino tax rate.“
Estimates from the institution are that about 195 billion baht of annual revenue would be derived from gaming activity. The remaining 30 percent of the revenue is expected from non-gaming segments including accommodation, food, and retail. Recently, it was noted that Thailand is unlikely to see the approval of its much-anticipated casino bill until the next general election in 2027, according to legal experts and industry observers. However, Maybank analysts believe that the casino legalisation process will remain aligned with the previously stated timeline, which was by first quarter of 2026.
Proposal encountering opposition
The Entertainment Complex Bill in the country aims to create legal casino resorts within broader entertainment zones. However, the proposal is encountering increased political and public opposition, which could postpone the legislative process beyond what was originally anticipated. Discussing the same, Maybank analysts wrote, “Political conflicts could cause delays, as the entertainment complex is a key project that requires effective collaboration between… Pheu Thai…, which oversees the Finance Ministry (the lead party), and the Bhumjaithai Party, which oversees the Ministry of the Interior.”
Moreover, the institution added, “It will be difficult to attract VIPs as Thailand is not a private wealth centre like Singapore and Hong Kong.” Maybank also noted that EBITDA margins for mass market is much higher due to low commissions generated from the junket business. The report added, “Thailand has the potential to rank second behind Macau in terms of the highest GGR.”
