igamingbusiness . com
FEATURE
gaming licensing [ regarding beneficial ownership of resorts ], anti-money laundering , socially responsible gaming and the increasingly important issues related to human trafficking ”.
“ I would advise the Thai government of the importance of engaging specialist advisers with detailed integrated resort policy and regulatory experience ,” Agenda Group regulatory affairs director Peter Cohen , former head of gaming oversight in Victoria , Australia , says . “ IRs exist in Macau , Singapore , Las Vegas , Melbourne and very few other places .”
WHAT WILL UNCLE SAM SAY ?
One key question is whether Thailand ’ s regulations will enable participation by operators in jurisdictions such as North America , Singapore and Australia without risking their existing licences . “ This is the biggest issue for the government to address ,” Destination Capital CEO James Kaplan says . “ US operators bring a cachet and marketing machine to the business with a broader international draw .”
But Bangkok-based Kaplan adds : “ The [ Thai ] market is so compelling that the regional players or a homegrown operator will make this a success .” Sources tell iGB that leading business groups in Thailand are also showing interest in IR development , quite unlike Japan .
A key determinant of Thailand ’ s regulatory rigour will be how it chooses to address its existing gaming industry . The national lottery and a limited horse racing calendar are Thailand ’ s sole legal gambling outlets . However , the scourge of illegal wagering ranges from unofficial lottery tickets to underground casinos . Many casinos that are ringing the kingdom ’ s borders and are catering to Thai players with Cambodia , Laos and Myanmar , feature Thai investors .
TEMPORARY BLINDNESS
“ We need to integrate the current gaming stakeholders ,” Suranand Vejjajiva , a top insider in both of the governments of brother-and-sister prime ministers Thaksin Shinawatra and Yingluck Shinawatra , says . “ I would like the government to make clear to present illegal operators that they must enter the system . There is a place for them to operate legally – turning a blind eye to what they are doing at present . And of course , a stronger punishment after if they continue with illegal operations .”
“ The process toward legalisation and development should seek out industry input , but the decision making should be based on a variety of factors including having clear public policy objectives and regulations that will attract investment and quality operators ,” Gushin , whose firm advised Singapore on its regulatory regime , says . “ Final decision making is the sole responsibility of the government , taking into consideration the viewpoints of various stakeholders – one of which will be the existing gaming industry .
“ Success can be defined as having the right elements involved as opposed to the wrong ones ,” the C-level US and Asia casino executive requesting anonymity says . “ The question is whether the legitimate operator can effectively compete with the illegitimate operator .”
In the early days of Macau ’ s casino liberalisation , this executive says , “ there was a regulatory structure but it really wasn ’ t all that well regulated . [ Las Vegas operators ] were able to keep their licences , but there was a lot going on that they knew was going on . More than half that income went to the illegitimate guys ,” the executive notes , referring to Macau ’ s junket promoters . “ It took Macau 20 years to get rid of the illegitimate guys .”
TRIMMING GRASSROOTS OPPOSITION
Grassroots opposition fuelled by fears of criminal elements and gambling addiction helped derail Japan ’ s IR licensing . Similar public opposition remains a threat to Thailand ’ s ambitions .
“ Religious and social issues will stimulate debate , which is important . From that debate , compromise and solutions will be agreed ,” Kaplan , whose firm specialises in hospitality properties , says . “ I believe there is sufficient local momentum at the
46 • ISSUE 136 • iGB L ! VE 2024