Thailand is on the brink of a significant transformation in its tourism and entertainment landscape, with the draft law for legalizing casinos set to be presented to the cabinet by the end of 2024. Deputy Finance Minister Julapun Amornvivat confirmed that this legislation aims to regulate and establish casino resorts within the country, marking a pivotal moment for Thailand’s gaming industry.
Public Support Fuels Legislative Momentum
The proposed law has garnered strong public backing, with a recent hearing revealing an impressive 82% approval rate among participants. This level of support is a crucial milestone, indicating a favorable environment for the bill’s advancement. The draft law, which has been in development for several months, will soon move to the House of Representatives for parliamentary review, scheduled to reconvene in mid-December 2024 and continue until April 2025.
- Key Highlights:
- 82% public approval during consultations.
- First-time public disclosure of support figures.
- Aims to establish legal casino resorts as part of entertainment complexes.
These entertainment complexes are expected to stimulate economic growth, particularly in foreign tourism and local employment. A study by the Fiscal Policy Office (FPO) suggests that the introduction of these venues could increase foreign tourist numbers by 5 to 20%, significantly boosting per capita spending.
Economic Growth and Job Creation
The potential economic benefits of the proposed entertainment complexes extend beyond tourism. Julapun emphasized that the construction phase alone would attract substantial investment, while the operational phase is expected to create numerous job opportunities for Thai citizens. The deputy minister expressed optimism about local residents finding employment within these complexes, highlighting the importance of training programs to equip them with necessary skills.
- Projected Economic Impact:
- Increased foreign tourist spending from THB40,000 to THB60,000.
- Significant job creation during construction and operation phases.
- Attraction of private investment in the tourism sector.
The draft law also outlines specific criteria for private investors, including a minimum registered capital of THB10 billion (approximately $300 million). Proposals will be evaluated based on their potential contributions to Thailand’s tourism industry, ensuring that investments align with national interests.
Recommendations and Adjustments Post-Hearing
Following the public consultation, the draft legislation received 45 recommendations for improvement. One notable suggestion was to rename the bill from the “Entertainment Complex with Casino” to the “Integrated Resort Act,” reflecting the diverse amenities these complexes will offer. Participants also recommended expanding the allowable entertainment activities from four to seven, incorporating cultural showcases that highlight Thai heritage.
- Key Recommendations:
- Rename the bill to “Integrated Resort Act.”
- Expand entertainment activities to include cultural showcases.
- Proposals for Thai nationals to hold 30% to 51% of shares.
Discussions also revolved around the ownership structure and licensing duration. Suggestions included reducing the license validity from 30 years to 10 years or extending it to 50 or 60 years. Additionally, limiting the number of entertainment complexes to between three and seven, strategically located in popular tourist destinations like Phuket and Chiang Mai, was proposed.
Licensing Framework and Regulations
The draft law outlines various regulations for operators and Thai citizens wishing to access casino facilities. It proposes that the entry fee for Thai nationals should not exceed THB5,000 (approximately $148) per visit. Licenses for operating the entertainment complexes will be issued for 30 years, with an option for renewal every 10 years. The initial licensing fee is set at THB5 billion (about $148 million), accompanied by an annual maintenance fee of THB1 billion ($30 million).
This draft law represents a significant step forward in Thailand’s efforts to legalize and regulate casino operations. By creating economic opportunities and attracting private sector investment, the bill aims to position Thailand as a key player in the global entertainment and tourism industry. Once the cabinet and parliament finalize the legislative process, Thailand could see its first legal casinos within a few years, enhancing its appeal as a premier tourist destination.
