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Making money in the Mekong A quick look at the macro-economic figures of the Mekong region clearly shows why there is so much interest in the tourism and gaming potential.
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ambodia, Vietnam, Thailand, Myanmar and Laos have seen their populations grow from 233 million a decade ago to an estimated 262.5 million this year - an enviable and steady rate at a time when many nations are experiencing declines amidst an aging population. This potential consumer base is also increasingly wealthy, with the income levels of residents in the region rising to an estimated $3,475 a head this year from just $816 in 2000. In terms of gaming, Vietnam introduced new regulations to cover casinos in 2017 and sports betting a year later, triggering a steady stream of investment, including the $4 billion Hoiana resort, which will open later this year. Cambodia is also expected to soon reveal its new gaming regulations, while Myanmar recently passed legislation that will officially allow casinos. Laos has the Savan Legend property and its owners, Macau Legend, are embarking on an expansion to add facilities, such as a new golf course and more VIP gaming. The operator is also in talks with the government over other potential resort projects in the country. Only Thailand has steadfastly maintained its opposition to IRs, although analysts expect that it will eventually also open its doors.
Asia Gaming Briefings | August 2019
In our Mekong edition of the magazine, the focus is therefore on some of the issues facing investors in the region, coupled with the market’s potential. Our first article looks at financing. Although returns from projects in the Mekong region can be high, there are also significant economic and political risks from investing in emerging markets. As a result, raising capital can be an issue and often requires a strong stomach. We look at some of the key challenges. Our second article focuses on Thailand, both in terms of the opportunities if that country legalises gaming, as well as the growing importance of the Thai gamer in the region’s casinos. Thai’s have long-been the key target audience of many of Cambodia’s border casinos, though now, as income levels rise, they are making up a significant portion of VIP revenue in many regional properties. As a result, many are positioning themselves to attract these wealthy individuals. For our last article in the focus section, we take a look at some of the IRs already open in the Mekong and assess their fortunes. While some are undoubtedly doing well, many have faced considerable challenges. We ask regional experts their views on the recipe for success.
