Inside Asian Gaming

February 2014 | INSIDE ASIAN GAMING 15 COVER STORY Thailand and China, and a short arm of the law combine to mean that about 60 or so gambling venues and a handful of larger casinos go unmolested. Most of the locations around Yangon are slot clubs, though there are a few high-stakes tables for VIPs. The EGMs tend to be older models, and the scene borrows from the pachinko model, in which prizes are given that can then be sold back to independent vendors located nearby. Gaming establishments in Yangon issue tokens that customers exchange for vouchers that can be converted by independent agents for cash at a discount. In addition, there are gaming facilities in areas that are known due to insurgency and unrest as the “black zones” as well as around the Andaman Sea. Thahtay Kyun Island in the Andaman Sea near Thailand’s city of Ranong hosts two casinos. The Andaman Club is a Thai-owned golf and casino resort set on 730 hectares with EGMs as well as roulette, blackjack, baccarat and poker. Treasure Island Casino, the largest gaming establishment in the country, is located nearby and also offers EGMs and tables. The other major center is Tachilek on the Thai border with several openly run casinos. They include the Regina Hotel Casino with 12 tables and 30 machines; the Maekhong River with two floors of gaming; the Allure Hotel with an estimated 200 machines; the Golden Triangle Hotel with 80 EGMs and 15 tables; and Las Vegas and the Aka, with only EGMs. An estimated 10 underground casinos are also active in the area. Other border areas also host casinos and deal in currency depending on where they are. The industry in its current form is highly profitable, demonstrating strong underlying demand both from locals and those in neighboring countries. Not surprisingly, the government is pursuing the establishment of a more formal and regulated gaming sector.While there is no set plan yet, the government is undertaking preliminary research by examining different options and looking closely at experiences with gaming elsewhere in the region, specifically in Cambodia, Laos and Vietnam, as well as Singapore and Macau. And according to a source with knowledge of the process, while tax revenue is one of the major factors, the primary motivation is to boost tourism. The catchment area is expected to be similar to others and might cannibalize Cambodia’s own industry. The country looks likely to follow Cambodia and Vietnam in restricting access to foreign passport holders. It is also believed that the government will institute a two-tier licensing system: one for small and medium-sized establishments, essentially allowing the existing operations to be grandfathered in, and one for large-scale casinos, enabling the development of integrated resorts restricted to certain designated areas in the country. The formalization of legal gaming is not expected to be without hurdles, however. Like Thailand and Sri Lanka, Myanmar is a predominantly Buddhist country, and Buddhism tends to frown on gaming, as Sri Lanka’s government is finding out. In addition, the country’s parliament will likely need to make gambling debts enforceable, as collecting would appear to contravene a law dating back to the 19th century; perhaps less a very high hurdle in itself than a symbol of how much remains to be done. While there is much optimism about Myanmar’s growth in the short term, much of the country is still very rural. Slot clubs are technically illegal, but many operate nonetheless. They may be grandfathered in if gambling is legalized. Myanmar’s gaming industry in its current form is highly profitable, demonstrating strong underlying demand both from locals and those in neighboring countries. Not surprisingly, the government is pursuing the establishment of a more formal and regulated gaming sector.