The bright lights of Las Vegas are now nearly synonymous with the word “casinos,” leading the way in gambling-centred entertainment since the 1950s.
The world is changing though – Macau being a perfect example of this. The Asian gambling hub has now surpassed Las Vegas in terms of gross gaming revenue almost every year since 2005, 2022 excluded.
Now, other countries are eyeing the success of Macau with great interest. They believe that they could secure some of this business too if they legalize casinos. There are three such countries who actually have a shot, the Japan, Thailand, and (perhaps most surprisingly) the United Arab Emirates (UAE).
Each of the trio is in a different stage in their journey towards casino legalization. VegasSlotsOnline News has assessed the progress of each.
Japan
Target date: 2030
Japan’s integrated resort plans have littered the VSO News headlines for the past few years after the parliament passed a law legalizing casinos in 2016, ending 15 years of political tension over the issue. The government then made plans for three licenses, with Japan’s regions bidding to become hosts.
Nagasaki pulled out of the race in March this year, leaving just Osaka
Initially, Nagasaki, Wakayama, Osaka, and Yokohama announced their interest, but this chopped and changed over the course of the process. Ultimately, only Nagasaki and Osaka officially applied in April 2022, before COVID-19 screenings led to delays. Nagasaki pulled out of the race in March this year, leaving just Osaka to develop the country’s first casino, with plans to open by fall 2030.
MGM Resorts International and the Orix Corporation have formed a consortium to develop the Osaka casino. They plan to build on the artificial island of Yumeshima which sits in Osaka Bay. In total, MGM is contributing $8.5bn to get the casino up and running.
While things might seem to be moving forward in Japan, albeit with one casino instead of three, an expert believes Thailand could now open first. Joji Kokuryo, the Managing Director of Tokyo-based Bay City Ventures, told?Inside Asian Gaming?that the expected one-year head start could take a lot of attention away from the IR. The draft legislation also appears more attractive for investors and operators.
Thailand
Target date: 2029
Thailand is the only remaining non-Muslim ASEAN nation without legal casinos. It joined the casino conversation earlier this year when Prime Minister Srettha Thavisin confirmed that he wanted gaming complexes launched by 2029. Thailand’s Council of State released a 22-page draft of gaming regulations to meet this aim, with public feedback taking place over the weekend.
gross gaming revenue tax for the operators would amount to just 17%
The regulation paints a bright picture for operators and potential investors. Thai casinos would get a 20-year license, compared to just ten years for Japan IRs. Meanwhile, gross gaming revenue tax for the operators would amount to just 17%, compared to Japan’s staggering 30%.
These favorable regulations have tempted some big names in gambling. Las Vegas Sands CEO Rob Goldstein has expressed excitement about the potential for gambling properties in Thailand. He said the company “absolutely” has an interest in acquiring a license in Thailand, despite noting that it is still early days.
The replacement of Thavisin as Thai PM has done little to slow progress in the country. In fact, new Thai leader Paetongtarn Shinawatra has ties to the gambling industry, and has already announced her intention to follow through on legalization. In a recent press conference, she highlighted other countries in which gambling had provided a major economic boost.
UAE
Target date: 2027
Now for perhaps the most unlikely addition to our competition to become the next Las Vegas. The United Arab Emirates have historically been against gambling due to the prevalence of Islamic and Shariah law. However, clearly the estimates of $6.6bn in annual gaming revenue have trumped the desire for conservatism.
Rumours began circulating about the UAE’s desire to join the casino market in 2022. Wynn Resorts International formed a deal with the nation, announcing that a new multibillion-dollar resort in Ras Al Khaimah would feature a “gaming” area, set to open in 2027. If it does manage to launch gambling in this time frame, it will undercut Thailand and Japan by two years. However, the country has remained tight-lipped about specific time frames for legalization to date.
Last year brought further progression though. The UAE created a gaming regulator, the General Commercial Gaming Regulatory Authority. The regulator’s board is headed by the former MGM CEO Jim Murren. The regulator’s main tasks are to “coordinate regulatory activities, manage licensing nationally and facilities unlocking the economic potential of commercial gaming responsibly.”
Dubai supposedly pulled out of the race, although MGM has begun developing a resort in the region
Later in 2023, it became clear that Ras Al Khamiah and Abu Dhabi would duke it out to host the first-ever casino in the UAE. The latter has scoped out Yas Island as a potential location for such a casino, while Ras Al Khamiah’s hopes remain with Wynn. Dubai supposedly pulled out of the race, although MGM has begun developing a resort in the region that will initially serve as a non-gaming facility.
Another exciting step came in July when the UAE issued its first lottery license, indicating its commitment to introducing gambling.