The appeal of developing a large-scale integrated resort in Thailand includes relatively cheap construction and labor costs with significantly higher margins, said MGM Resorts President and CEO Bill Hornbuckle during an appearance at the JP Morgan Gaming, Lodging, Restaurant and Leisure Management Access Forum 2025.
However, he also warned that the legislative process would likely take longer than expected – pointing to the company’s Japan experience as an example of how such situations can become more complicated than expected.
“I think something happens there,” Hornbuckle said in response to a question about the Thai government’s entertainment complex bill.
“I think it won’t go as fast as they would like to think it will because once you get into it, as you all know, there’s a lot to it. Now, I don’t think it needs to take as long as it did in Japan but there’’ a lot to do.
“I would like to think that by the first or second quarter next year there’s real legislation and there’s a real process that’s been identified.”
Pressed about the market’s appeal, the MGM chief added, “The point of access there – it’s an amazing marketplace and although nothing’s cheap to build anymore, it’s 35 cents to 40 cents on the dollar compared to anything [in the United States] and even cheaper to operate, so if you were lucky enough to get a license and build something of substance it’s a meaningful market and I think the margins in that business would be pretty extensive.”
Hornbuckle reiterated MGM’s plan to pursue a Thai casino license through its 56%-owned Macau subsidiary MGM China.
MGM Resorts CFO Jonathan Halkyard explained that one of the reasons for using the MGM China route was that the “MGM China balance sheet is really under levered compared to the performance of that business and its prospects. That’s the appeal of potentially using that balance sheet as a vehicle to develop property of Thailand.”
MGM also provided an update on the company’s progress in Japan, where it is developing the nation’s first and at this stage only integrated casino resort on Yumeshima Island in Osaka.
Hornbuckle revealed he was travelling to Osaka this weekend for the finalization of construction contracts and pricing.
“I will come away from that with a better understanding [of pricing and progress] but it’s slated for April – going in the ground with pylons – and the build cycle is through the middle of 2025 so none of that has really changed.
“So, we’ll be out next week sitting down with all the final contractors and understanding final pricing.”
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