During Las Vegas Sands’ first-quarter earnings call, CEO Rob Goldstein addressed both setbacks in New York‘s licensing process and the company’s interest in Thailand‘s gaming potential, shedding light on its strategic outlook amidst evolving market dynamics.

Las Vegas Sands Faces Extended Timelines in New York

In response to delays in New York’s casino licensing, Goldstein expressed frustration, citing ongoing uncertainties surrounding the timeline for approvals. Las Vegas Sands had anticipated progress in 2024 but now faces extended timelines, with decisions pushed back to potentially 2025 or 2026. 

Patrick Dumont, Las Vegas Sands president and COO, also expressed his exasperation: “Now they are saying 2025 or 2026, but I do not think we have any real clarity. And to be honest, it is confusing and disappointing because we have done a lot of work in New York and invested a lot of time into it. So I have no guidance because I do not really know what to say with candor and insight.”

Regulatory hurdles, particularly in New York City, have impeded advancements, with zoning amendments awaiting approval to facilitate casino developments within the city’s five boroughs. 

Moreover, legal disputes, including challenges from Hofstra University regarding a planned resort near the Nassau Coliseum, have further complicated matters. Goldstein emphasized the need for clarity and resolution in New York’s regulatory landscape, reflecting the company’s long-standing commitment to the market.

Las Vegas Sands Eyes Thailand Amidst New York Setbacks

Despite challenges in New York, attention turned to Southeast Asia, with Wall Street analyst Chad Beynon from Macquarie US Equity Research probing about prospects in Thailand. Goldstein responded optimistically, acknowledging Thailand’s potential to expedite developments. 

He highlighted the market’s allure, citing its sizable population, accessibility, and status as one of Asia’s premier resort destinations. Goldstein affirmed the company’s interest in Thailand, underscoring ongoing efforts to assess opportunities and determine feasibility in the region.

The discussion on Thailand aligns with broader industry sentiments, reflecting growing interest in the Southeast Asian nation’s gaming landscape. Thailand’s recent strides in passing legislation for legal casino gaming suggest that it may launch its first casino before Japan, potentially opening doors for rapid tourism and economic growth. 

With overwhelming support from the House of Representatives and favorable tax rates, experts anticipate Thailand to become a prime destination for international casino companies, possibly outpacing Japan in the race to establish integrated resorts. 

As Las Vegas Sands navigates through regulatory challenges in New York, the company remains committed to exploring new opportunities and expanding its global footprint. Despite uncertainties in mature markets, the company’s strategic vision extends towards emerging destinations like Thailand, where it seeks to leverage its expertise and capitalize on evolving market dynamics.

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Marking a groundbreaking move toward Thailand’s trials to address the highly-debated topic of gambling legalization, the Finance Ministry will take the lead on an important study exploring the potential legalization of casino gaming. 

16 Additional Agencies to Consider the Study

As ordered by way of an “urgent letter” sent by the Secretariat of the Cabinet at the start of the week, the Finance Ministry will thoroughly examine the House of Representatives study alongside 16 other agencies, which it will also lead. 

The list will include the National Economic and Social Development Council, the Office of the Council of State, the Royal Thai Police, and the National Office of Buddhism.

Several ministries will also be consulted, including Social Development and Human Security, Tourism and Sports, Justice, Agriculture and Cooperatives, Higher Education Science Research and Innovation, Transport, Culture, Labour, Public Health, Industry, and Education.

According to English-language outlet The Nation, the Secretariat of the Cabinet gave the Ministry 30 days to send its recommendations.

IAG reports say that the casino study received approval from the cabinet a week ago after the House passed it at the end of March. 

Recommended 17% Tax on GGR

The casino study advises a 17% tax should be placed on gross gaming revenue. This would turn it into one of the lowest tax regimes in the area. 

Licenses would be valid for 20 years at first, with the possibility to renew them every five years. 

Locals would need to pay an entry levy of an amount that has yet to be determined. 

Larger casino complexes would require minimum investments of $2.7 billion.

Last week, when the cabinet endorsed the study, it also recommended a series of joint investments between private operators and the Thai government, similar to Macau’s concession model. 

The cabinet also suggested that integrated resorts should be located near international airports for the comfort of international visitors.

According to a note from Maybank, the country might see its first integrated resort open in 2029. 

This would translate to Thailand legalizing casino gaming before Japan where MGM Resorts International’s $10 billion integrated resort development in Osaka is expected to be completed in 2023.

At the start of April, Thailand announced it blocked over 25,000 online gambling platforms since October 2023, in an ongoing crackdown on unlicensed online gambling. 

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