Thailand’s cabinet has taken a significant step toward transforming the nation’s gambling landscape by approving a draft law to legalise casinos. The move, announced on 13 January, signals a potential shift in Thailand’s stringent gambling policies, which currently allow only limited forms of legal betting.
The Integrated Entertainment Business Act: What’s Next?
The draft law, officially titled the Integrated Entertainment Business Act or Entertainment Complex Bill, is designed to introduce casinos as part of integrated resorts. These resorts would combine gaming facilities with non-gaming attractions to boost tourism and investment. Prime Minister Paetongtarn Shinawatra confirmed the approval earlier today, highlighting its potential societal benefits.
Next, the draft law heads to parliament for deliberation, with both the Senate and House of Representatives needing to approve it. Government officials estimate the law could pass by mid-2025.
Currently, Thailand enforces a near-total ban on gambling, with exceptions for state-controlled activities like horse racing and the official lottery. Illegal gambling, however, remains widespread, posing challenges for law enforcement and public safety. Proponents of the draft law argue it could mitigate these issues while generating significant state revenue.
Aiming for Controlled Gambling and Economic Gains
The government hopes legal casinos will address several long-standing issues, including illegal gambling. In a statement, officials explained the broader objectives: promoting tourism, attracting investment, and creating safer gambling environments.
Shinawatra also emphasized the potential financial benefits: “Legalisation will protect the public and would also generate more state revenue.”
Key Features of the Casino and Gambling Bill
The bill includes several strict regulations to ensure gambling is introduced in a controlled manner. These include:
- Integration with Resorts: Casinos must be part of full-service resorts featuring at least four non-gaming attractions. These might include hotels, theme parks, retail spaces, and entertainment venues.
- Limited Gaming Space: Gaming areas can occupy only 5% of a resort’s total area, ensuring the focus remains on broader entertainment.
- Licensing Terms: Licences will be issued for 30 years, with evaluations every five years and renewal periods of up to 10 years.
- Financial Requirements: Applicants must be registered in Thailand with a minimum paid-up capital of THB10 billion (£237 million). Initial licence fees will be THB4.9 billion, and annual fees THB1 billion.
- Regulation and Oversight: The Office of the Full-Service Entertainment Regulatory Commission will oversee operations, with a proposed tax of 17% on gross gaming revenue.
Initially, five licences will be granted, covering key locations: two in Bangkok, and one each in Pattaya, Chiang Mai, and Phuket.
Regional Inspiration and Expected Impact
Thailand’s push to legalise gambling mirrors the success of neighbouring countries such as Singapore, the Philippines, and Cambodia, which have reaped economic benefits from integrated resorts. Proponents believe Thailand can replicate these successes while tailoring its approach to its unique cultural and economic context.
Officials predict significant economic benefits, including:
- Tourism Boost: Foreign visitor numbers are expected to rise by 5% to 10%, as tourists seek entertainment options beyond Thailand’s beaches and temples.
- Revenue Surge: Deputy Finance Minister Julapun Amornvivat estimates tourism revenue could grow by THB220 billion annually.
- Job Creation: The law could generate 9,000 to 15,000 new jobs, further strengthening the economy.
Challenges and Public Sentiment
Despite the potential benefits, the proposal has sparked debate. Critics question whether legalising gambling might exacerbate social issues, including gambling addiction and financial stress among citizens. Advocates argue that a regulated environment will reduce the harm caused by illegal gambling and provide better safeguards for individuals.
Additionally, lawmakers must address public sentiment. Gambling remains a contentious issue in Thailand, with some opposing it on cultural and moral grounds. As the draft law progresses, it’s likely to spark spirited debates within parliament and the public sphere.