KUALA LUMPUR: Genting Malaysia Bhd's Resorts World Genting is expected to see minimal impact from the opening of legal casinos in Thailand with less than 20 per cent of its gross gaming revenue (GGR) coming from foreigners, Maybank Investment Bank Bhd (Maybank IB) research said.
Genting Singapore and NagaCorp Ltd are most at risk from the plan however, with more than 60 per cent of their gross gaming revenue (GGR) coming from foreigners.
Genting Singapore's Resorts World Sentosa (RWS) makes more than 60 oer cent of is GGR from foreigners while NagaCorp's Naga 1 and 2, gets almost all their GGR from foreigners (only Cambodians who hold foreign passports can gamble in Cambodia).
Maybank IB is not overtly concerned for the two companies however as they will have time to respond with the first casino slated to open in Thailand in 2029.
"Recall that many who had believed that Malaysian GGR would fall after the Singaporean integrated resorts opened in 2010 were proven wrong," the investment bank said in a note.
Genting Singapore and NagaCorp are investing SG$6.8 billion to upgrade and expand their properties.
Genting Singapore also expressed interest in bidding for a Thai EC license, in which Maybank IB feels their eventual fates may be a lot less dire.
Thailand took the first step towards legalising entertainment complexes (ECs) that will house casinos on Mar 28, 2024.
The proposed gaming tax rates are low at 17 per cent and social safeguards à la Singapore will be proposed. A maximum of eight ECs are slated for construction.