Over the past few months attention and allure of global operators has slowly heightened when it comes to the development of new markets in Southeast Asia.
The most recent developments have served to cement this interest as both Thailand and Japan sought to take strides forward in the race for legislation.
Both Japan and Thailand present very different prospects for operators looking to enter – where they place their focus will be fascinating as both continue to unfold in terms of regulatory frameworks.
MGM appears to have very much secured its position in Japan after the group waived its right to withdraw from the market sector, putting the country on the path to a 2030 launch, in relative tandem with Thailand.
Localisation is going to be essential for MGM in the region as it looks to guarantee market share and tap into the cultural nuances of Japanese players.
Meanwhile, all signs in Thailand point to a more competitive market – with Prime Minister Paetongtarn Shinawatra bringing an end to a period of political disruption by using her policy statement as a launchpad for plans for the sector.
It is likely that 10% of integrated resort venues will be able to focus on gambling, whilst the rest are committed to entertainment. It was also reported that there will be a total of seven resorts in Thailand including three in Bangkok.
Given the thriving tourist economy it’s hard to put a ceiling on just how major these venues could be as hotspots within the country and how much footfall they could generate.
For operators expanding into Thailand they will need to bring a high level of allure to tourists, generating the feeling that players are at a venue that taps into the essence and appeal of the country’s culture.
There are also moves afoot in the Philippines to tap into the gaming sector in a bid to bolster its economic output.
Looking to urge operators away from engaging with the grey market, The Philippine Amusement and Gaming Corporation (PAGCOR) moved to reduce steps to reduce fees for operators by 2025.
The development was confirmed by Alejandro Tengco during a keynote address at the IAG Academy Summit on Tuesday, who confirmed that licence fees for online gaming operations will be lowered to 25%.
Furthermore he added that they will drop to 30% for other integrated resorts and land-based operators.
The changes are taking place as the region takes significant steps to clean up its gambling sector and tackle the black market, with licensed integrated resorts set to see a reduction of 10% in charges on GGR.
Speaking at the Summit, Tengco emphasised that gentrification of the business “encourages operators away from the grey markets and to embrace the mainstream”, something that will prove vital as he unites with governmental forces to bolster the crackdown on illegal operations in the region.
On the other hand, the capital of gambling in the region Macao is seeking to diversify its economy, with newly elected CEO of the region Sam Hou Fai warning that the country will be left with no choice but to identify new income streams.
Responding to a journalist’s question on the current state of play for the gaming industry and its role in the economy of the area, he opined that it is a sector that has become ‘uncontrolled’.
He said: “After the return of sovereignty, Macau held an open tender for the gaming industry, and the tourism and gaming industry developed rapidly afterwards, but for a period of time, it developed in an uncontrolled manner.
“The Central Government’s proposal for Macau to develop its economy in an appropriately diversified manner is a mandatory question for the Macau SAR Government, not a question of choice.”
Continuing on a cautionary theme, Hou Fai advised that the task of economic diversification could be a difficult, but essential journey as he warned of the major impact of the country losing ‘momentum of development’.
It’s hard to truly predict exactly how gaming markets will unfold within Southeast Asia. But while it’s a case of much remains to be seen, there’s no doubt that this vibrant region presents one of the most significant new opportunities for operators.
