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Today (January 13), the Thailand Cabinet approved a draft bill legalizing casinos in the country, with the main aim being to boost tourism and push for economic growth.
Prime Minister Paetongtarn Shinawatra confirmed the news this Monday to reporters, stating that the Entertainment Complex Bill, also known as the Integrated Entertainment Business Act, would allow gambling to take place in large-scale entertainment resorts and complexes.
Currently, most forms of gambling, including casinos, are illegal in Thailand. The official lottery and state-controlled horse racing are among the few legal options available to players in the country. However, despite the near-blanket ban, underground gambling, lotteries, and soccer betting have thrived, indicating a significant demand for regulated gambling options.
The proposed legislation aims to create a controlled environment for gambling that can attract both domestic and international tourists, potentially generating substantial revenue for the government. The Cabinet is set to pass the draft law on to the parliament, where it will undergo further debate before final approval by the House of Reps and Senate.
The Thailand government also released a statement, saying, “The purpose of the bill is to increase the efficiency of tourism and promote investment in the country, as well as solve the problem of illegal gambling that currently exists. It will also have a positive effect on society in the future as a whole.”
The message was backed by the prime minister, who spoke to reporters, saying, “Legalisation will protect the public and would also generate more state revenue.”
Key Features of the Draft Casino and Gambling Bill
The Office of the Full-Service Entertainment Regulatory Commission will be put in charge of regulating the legal gambling market, with casinos having to pay 17% of their gross gaming revenue as tax. Licenses would be awarded on a 30-year basis, and operators would have to face an evaluation every five years.
To qualify for a license, applicants need to be registered in Thailand and demonstrate a paid-up capital of at least THB 10 billion (approximately £237 million, €286 million, or $288 million). An initial licensing fee of THB 4.9 billion would also be required, along with annual fees of THB 1.0 billion.
Furthermore, all casinos must be integrated within full-service resorts that feature at least four non-gaming attractions, such as concert halls, hotels, clubs, stadiums, theme parks, retail spaces, and restaurants. Notably, gaming areas can only constitute a maximum of 5% of the total area of each resort.
Initially, the government plans to issue five casino licenses, with locations designated for Bangkok, Pattaya, Chiang Mai, and Phuket. This structured approach aims to foster responsible gambling while promoting tourism and economic growth in the selected regions.
Also, individuals under the age of 20 would not be permitted to enter the casinos. Foreigners would be granted free entry, but Thai citizens must pay THB 5,000 ($148) to enter.
Fresh Criticism from Council of State Emerges
This is not Thailand’s first attempt at legalizing casinos and gambling. Previous attempts were met with strong opposition from the conservative factions in the predominantly Buddhist country. Most of the critics of the draft law argue that legalizing casinos could lead to the rise of several issues, including gambling addiction and financial distress among vulnerable populations.
Recently, the Council of State, Thailand’s advisory body on legal matters, voiced its concerns regarding the scope and focus of the proposed legislation. Secretary General Pakorn Nilpraphan highlighted the need for the law to align better with broader government initiatives aimed at creating “man-made destinations” such as theme parks and entertainment complexes.
Pakorn emphasized that the bill should clearly define whether its primary goal is to tackle gambling-related problems or to foster tourism-centric attractions. He suggested that if the intent is to develop these destinations, gambling should be a secondary feature rather than a central element of the entertainment complexes.
However, this comment seems somewhat redundant, as the draft law already stipulates that only 5% of the complexes would be dedicated to gaming.
Massive Potential Economic Benefits
Meanwhile, backers of the legislation argue that Thailand has been long missing out on the economic benefits of legalized gambling, which neighboring countries like Cambodia, Singapore, the Philippines, Laos, and Myanmar have been enjoying.
Should the legislation pass, the Finance Ministry is estimating an additional THB 120 to 220 billion in tourism revenue. It’s also expected to create 9,000 to 15,000 new jobs and increase foreign visitor numbers by 5% to 10%.
Source: iGamingBusiness
