MGM Resorts urges 'competitive' casino tax

Thailand should have a casino tax rate that is competitive with Singapore and a substantial number of locals should be allowed to visit casino complexes, rather than solely serving foreign tourists in order to stimulate tourism and economic growth, says integrated resorts operator MGM Resorts International.

- MOLPASORN SHOOWONG

The operator is interested in investing in a US$3-5 billion casino facility in Bangkok.

Ed Bowers, president of global development at MGM Resorts, told the Bangkok Post new countries embracing integrated resort investments need to be competitive with other countries in the region, especially in terms of casino tax rates.

Singapore charges an average tax rate of 17% on a casino's gross gaming revenue, while Macau and Japan set higher rates of 40% and 30%, respectively, said Mr Bowers.

He said it is important to allow local people to visit casinos.

Casino resorts in some markets are not a good fit because there is a mismatch between the government's aspirations and an operator's needs, such as in South Korea, which forbids locals to engage in gambling, said Mr Bowers.

A media report suggested an integrated resort located in the South Korean port of Incheon is up for sale due to financial constraints. He said this casino resort struggled to earn enough revenue because of the lack of visitors, particularly locals.