NEWS EXTRA
Myanmar to review casino gaming laws
Top gaming news and analysis web site Innovate Gaming looks at the genesis of a new gaming market
T
he nation of Myanmar (aka Burma) that sits between India, China and Thailand, has become increasingly popular in recent times and is set to review its gambling act. A $500m
tourism master plan will look to regulate the tainted sector and explore casinos and integrated resorts.
Although largely untouched by mass tourism
due to a long period of inaccessibility, new routes have recently been introduced from London via Bangkok and from New York via Seoul. Its sparkling blue lakes and ancient Buddhist architecture have made the nation become an increasingly popular destination amongst tourists and travellers.
International visitor arrivals are projected to
rise as high as 7.5 million in 2020, producing a US$ 10.1bn tourism industry. As part of a $500m tourism master plan, developed with the Asian Development Bank (ADB) and funded by Norway, the Government of Myanmar will look to clean up and reinvent the gaming sector.
“This master plan outlines a path to
welcoming more visitors to Myanmar without threatening our unique cultural heritage or endangering pristine environments,” indicated U Htay Aung, Myanmar Tourism Minister, “Priority issues include a review and recommendations on how integrated resorts with gaming and casinos could better align with the vision and aims of the responsible tourism policy.”
Several casinos currently exist in Myanmar,
but they are unregulated and located in border areas primarily to serve patrons in China and Thailand, two countries where gambling remains illegal. It is common to see slot machines and table games bustling with players, even though regulation and control remains largely insecure.
8 JULY/AUGUST 2013 “A lot of border casinos are very
professional,” claimed Michael Backman, an Asia analyst who has researched cross-border casinos in the region, “If the odds were deliberately stacked or players felt that it was not professionally run they would not come.”
Casinos that operate legally in Myanmar are
part of a hotel or resort with a number of amenities such as restaurants, bars and nightclubs. But legality of gaming remains questionable and illegal junkets are common, especially from China after authorities blocked its citizens from frequenting Myanmar’s casinos. Criminals have allegedly long used the casinos as a means of laundering money and a major crackdown by the Chinese government in 2006 reduced the number of facilities from 150 to about 28.
Ben Lee, Managing Partner at iGamix Management & Consulting, remarked: “They are ‘legal’ in the sense that the Myanmar government does take its cut of the gaming revenue. The government’s cut varies depending on what arrangement it has with the casinos. There are no formal gaming taxes on these operations.”
But according to the government’s master plan, a healthy tourism industry could soon emerge and create up to 1.4 million new jobs over the next 5 years. The plan also outlines the need for new tourist police divisions to be set up that would help eradicate illegal gambling dens throughout the country, as well as handling an influx of visitors and maintaining control over tourism in communities.
“Tourism will be a pillar of Myanmar’s economy, and it has the potential to create meaningful job opportunities for the country’s people, including those living in poor communities,” said Stephen Groff, ADB Vice President, “This plan is a long-term
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vision, and a solid start to ensuring tourism contributes to equitable social and economic development in Myanmar.”
Myanmar has become more accessible for
business after President Thein Sein, a general- turned-civilian, ended sanctions with the West earlier this year. Since taking power two years ago, the President has bolstered international trade ties and lifted the country out of political isolation, making integrated resort-style investment opportunities a reality.
Rich with natural resources, tax revenue is
not as important as boosting tourism and eliminating illegal gambling in Myanmar. The nation could emerge as a very attractive proposition for developers and create a fruitful gaming industry. “If Western companies don’t do anything, the Chinese are going to run away with it,” added Lee, “The Chinese are already doing business there and can move money cross-border for both business and gambling purposes.”
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