Thailand’s cabinet has taken a significant step towards legalizing casinos, approving a bill in principle that could transform the nation’s tourism sector and tackle widespread illegal gambling, Bloomberg reports.
The move, spearheaded by Prime Minister Paetongtarn Shinawatra, envisions casinos operating within large entertainment complexes featuring hotels, convention centers, and amusement parks.
The draft legislation, which will now undergo scrutiny by the Council of State, is seen as a potential economic game-changer for Thailand. The government believes that by legalizing casinos, it can tap into the lucrative global gaming industry and generate substantial revenue, while simultaneously curbing rampant illegal betting.
“This initiative aims to promote tourism, facilitate investments, and address the illegal gambling problem,” Prime Minister Shinawatra stated after a cabinet meeting on Monday. She emphasized that these integrated entertainment venues could significantly boost the country’s GDP and tourism revenue, pointing to Singapore as a successful example.
Global Gaming Giants Eye Thailand
The prospect of legalized casinos has already attracted the attention of major international players in the gaming industry. Galaxy Entertainment Group, MGM Resorts International, and Las Vegas Sands Corp. are reportedly exploring potential opportunities in Thailand as they seek to diversify beyond existing markets like Macau.
Citigroup Inc. projects that Thailand could become a major player in the global gaming sector within six years of full casino operation. The proposed integrated resorts are expected to appeal particularly to Chinese and Malaysian travelers, who already constitute a significant portion of Thailand’s tourist arrivals.
Multi-Billion Baht Investment
The draft bill stipulates that Thai-registered companies with a minimum paid-up capital of 10 billion baht ($287 million) will be eligible to operate these integrated resorts. A 30-year license will cost 5 billion baht in the first year, followed by annual fees of 1 billion baht. License extensions of up to 10 years will be possible.
Deputy Finance Minister Julapun Amornvivat estimates that each entertainment complex could require an investment of around 100 billion baht, generating up to 15,000 jobs. The tourism sector could see a revenue boost of 120 billion to 400 billion baht, while the government could net an estimated 12-40 billion baht annually.
Targeting Existing Gambling Habits
While most forms of betting have been banned in Thailand since 1936, a 2021 study revealed that nearly 60% of Thais participate in gambling. Many Thais also travel to neighboring countries like Myanmar, Laos, and Cambodia to access casinos. Legalization is hoped to channel this activity into a regulated and revenue-generating system.
Next Steps, Location Plans
After the Council of State’s review, the cabinet will re-examine the bill. A panel chaired by the prime minister will then establish specific regulations, including income tax rates, license numbers, and locations.
The proposed entertainment complexes are required to include at least four other types of businesses alongside casinos, such as department stores, hotels, amusement parks, restaurants, or nightlife venues. Initial plans suggest the possibility of five casino permits being granted in popular tourist destinations, with two in Bangkok and one each in Pattaya, Chiang Mai, and Phuket, according to local media reports.
The government aims to capitalize on the continued growth of Thailand’s tourism sector, which is expected to reach a record 40 million foreign arrivals this year. Tourism currently contributes about 12% of Thailand’s GDP and accounts for nearly a fifth of all jobs.
