Thailand Takes Step Toward Legalizing Casinos With Draft Bill

05.08.2024 - 16:47 / skift.com / Peden Doma Bhutia

Thailand is on its way to legalizing casinos, a move seen as crucial to revitalize the country’s tourism sector and attract substantial foreign investment.

Thailand’s Council of State has unveiled a draft bill, inviting public feedback until August 18. The draft bill’s next steps involve cabinet approval, parliamentary debate, and potential amendments. The 22-page document outlines plans to integrate casinos into large entertainment complexes, echoing a model used successfully in Macau.

This development follows close on the heels of the United Arab Emirates, whose regulators released rules for gaming in late July.

The cabinet also recommends that the gambling area in casino resort developments not exceed 5% of the total project area, with the rest allocated to complementary hotel and entertainment offerings.

The draft proposes a “reasonable” entry fee for Thai nationals, similar to the approach taken in Singapore. In the latest reporting period, Singapore collected SGD147 million ($109 million) from the casino entry levy.

The proposed law also mandates 30-year casino licenses, renewable for an additional decade, and requires that private companies with a paid-up capital of at least THB 10 billion ($285 million) operate these venues.

The draft bill’s timing is also critical. Earlier this year, a special House committee recommended legalizing integrated resorts, which the Thai cabinet endorsed. The finance ministry conducted a feasibility study, involving 17 agencies, highlighting the government’s serious intent to explore this economic avenue.

Analysts estimate that legalizing casinos could boost Thailand’s tourism revenue by $12 billion annually, a significant injection for an industry that constitutes around 12% of the nation’s $500 billion economy. The plan aims to position Thailand as a premier destination in the lucrative casino market, with potential revenues rivaling established hubs.

Also, intense competition is taking shape to entice investors and tourists to help rebuild economies across the region. The integrated resort market that brings together hotels, casinos, convention facilities, dining, entertainment shows, luxury retail and themed attractions, is already quite crowded in Asia.

Along with regional market leaders like Macau and Singapore, Cambodia, Vietnam, Philippines, South Korea and Malaysia have integrated resorts and Japan too is looking to develop this sector.

While the exact locations for these entertainment complexes remain undecided, popular tourist destinations like Bangkok, Phuket, Chiang Mai, and Pattaya are front-runners. The draft bill specifies that these venues should be within 100 kilometers of major airports, enhancing accessibility for international visitors.

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