Thai Government Finalizes a Bill to Legalize Casinos in Thailand

Thailand is on the brink of a major shift in its entertainment landscape, as the government finalizes a bill to legalize casinos within entertainment complexes. This move could transform the country’s tourism and economy, providing new opportunities for both domestic and foreign investors. 

If you’re a gambling enthusiast planning a visit to Thailand or are simply curious about how this change might impact the country, here’s what you need to know.

What is the Current Status of the Bill in Thailand?

The Thai government is moving forward with a bill that aims to legalize casinos in entertainment complexes across the country. Drafted by the Finance Ministry and known as the Entertainment Complex Act, it will soon undergo a public hearing. The hearing is a major step required by the constitution, ensuring that the public has a voice in the legislation process.

After public feedback is collected, the bill will be submitted to the cabinet for final approval.

Why is Thailand Moving to Legalize Casinos?

The government sees the entertainment industry, including casinos, as a key opportunity to boost tourism revenue. The bill suggests that promoting and regulating these integrated entertainment complexes could draw more tourists to Thailand, leading to increased tax revenue and spending. Legal casinos would also diversify Thailand’s entertainment offerings, supporting long-term tourism growth.

Proponents of the casino bill stress that the government is not seeking revenue to encourage gambling from Thai citizens. To curb this problem, they hope to impose an entrance fee for these complexes that would apply to Thais but not to foreigners to discourage locals from excessive gambling.

How Will the Thai Government Regulate Casinos?

The Entertainment Complex Act is detailed, with 65 sections outlining the rules and regulations for running these complexes. For any complex that wants to include a casino, a license is required, which can be valid for up to 30 years. This license isn’t cheap — operators will need to pay 5 billion baht upfront to register and an additional annual fee of 1 billion baht each year. The Thai government will review these complexes every five years to make sure they meet the necessary standards.

The bill also includes age restrictions, prohibiting entry to anyone under the age of 20. While the casinos will be freely open to all foreigners, Thai citizens will need to pay an entrance fee of 5,000 baht. 

A policy board, chaired by the prime minister, will oversee the operation of these complexes, setting the rules and ensuring that everything runs smoothly. The government’s hope is that these complexes will not only bring in more tourists but also stimulate domestic investment, further benefiting the country’s economy.

Why Legalizing Casinos Could Boost Thailand’s Economy

Legalizing casinos in Thailand could bring significant economic gains. Worldwide, casino-based entertainment is thriving, valued at $1.5 trillion in 2022. Projections show this number rising to $2.2 trillion by 2028, highlighting a promising opportunity for Thailand’s economy.

Macau leads the world in casino revenue, bringing in $32 billion annually, with a population of just 690,000. Las Vegas follows with $30 billion, and Singapore earns $12 billion. As Japan prepares to launch three casino projects, Thailand is eager to secure its share of the global casino market.

A House committee report estimates that the project could generate at least 12 billion baht in taxes during its first year. The committee’s study examined the potential effects on Thailand’s economy, society, education, and culture, along with the business structure and revenue collection for these entertainment complexes.

Five locations have been selected as potential sites for these complexes: two in Bangkok, one in the Eastern Economic Corridor, and one each in Chiang Mai and Phuket. These sites were chosen for their strategic value in attracting tourists and investors.

What are the Concerns Surrounding Casino Legalization in Thailand?

Many people, particularly from opposition parties, are against legalizing casinos in Thailand. A spokesman for the Thai Sang Thai Party criticized the project, highlighting concerns over weak law enforcement complicating casino regulation.

Members of both the Bhumjaithai Party and the Democrat Party also raised issues with the government’s entertainment complex bill, arguing that the potential benefits don’t outweigh the negative impacts.

Chaichanok Chidchob, Bhumjaithai Party’s secretary-general, outlined four key reasons for their opposition:

• The bill would not solve illegal gambling issues and might increase gambling problems in both the legal sector and the underground market.
• The supposed benefits to state and public funds do not justify the required investment.
• Using casinos to drive tourism is unnecessary, given the country’s existing attractions.
• The bill fails to clarify how Thai workers would secure jobs in these complexes.

He also suggested that the government could increase revenue by legalizing and taxing underground lotteries instead.

The deputy leader of the Democrat Party echoed concerns, questioning whether Thai casinos could attract foreign tourists when similar facilities exist in neighboring countries. He argued that these casinos would end up relying on Thai customers.

He also mentioned the failures of entertainment complexes in nearby countries, where promises of local jobs were unmet, and only a few low-level positions were filled. Additionally, he pointed out the strong link between casinos and serious crimes like money laundering, especially near the Thai border, noting the challenges in controlling such activities.

The Future of Casinos in Thailand

While this bill is largely complete, it is still in its early stages. Also, with the new Prime Minister being sworn in, the fate of bills introduced under her predecessor is uncertain. It remains to be seen whether this law will be passed, but proponents remain and the new PM will be under pressure to invigorate Thailand’s sluggish economy, so it is still possible that Thailand could see legal casinos in the near future.

Category: Business in Thailand