Are Galaxy, MGM casinos betting on Thailand amid Macau shift?

Two of the world’s top casino operators are laying the groundwork to potentially establish gambling facilities in Thailand as the industry looks to hedge against a deteriorating outlook in Macau.

Galaxy Entertainment Group and MGM Resorts International are studying the potential of opening casino resorts in the country, according to the people, who asked not to be identified because the matter is private. Galaxy, the gaming, retail and hospitality group controlled by billionaire Lui Che-woo, is also exploring starting gaming operations in the United Arab Emirates, some of the people said.

A representative for Galaxy didn’t comment on its plans. MGM didn’t immediately respond to a request for comment sent outside business hours.

The early efforts to enter new markets reflect casino operators’ anxiety over a deteriorating outlook for Macau, which once pulled in six times the gaming revenue of Las Vegas and delivered historically high returns. China wants the enclave to shift away from gambling toward entertainment and has cracked down on high rollers it suspects of money-laundering while imposing heightened scrutiny on gaming activities.

While China’s reopening has sparked a tourism surge that helped Macau’s gaming revenue return to about 60 per cent of the pre-Covid level in May, the boom could fade later this year as pent-up demand eases and increasing flight capacity sees more Chinese head overseas. It’s also likely to take years for the city to add more attractions and non-gaming events to draw in enough visitors to fill the gap left by VIP gamblers, who used to account for half of total gaming revenue.

With the potential for both Thailand and the UAE to legalise casinos in coming years, operators are seeking to get a head start.