The passing of Thailand’s King Bhumibol Adulyadej on Thursday will have implications both near and long term for the gaming industry, said Union Gaming.
“Over the near-term, we expect at least a month long period of very soft Thai-originated gaming volumes at several border casinos run by publicly traded operators. Over the long-term, a newly elected government under the new monarch, or perhaps a strengthened military government, could green light the holy grail of gaming expansion in Southeast Asia,” said the brokerage in a note on Friday.
Union Gaming also notes there will likely be near-term disruption at border casinos, as the mourning period means restricting entertainment activities for 30 days.
In regards to gaming expansion, the brokerage notes that it expects a “fairly long transition period (potentially more than a year)”, and expects “2018 to be the first practicable year that gaming expansion could be discussed.”