Thailand Takes a Gamble: Casino Legalisation on the Horizon

Thailand is proceeding with its plans to legalize casinos, which it hopes will enhance its appeal as a tourism destination and attract significant foreign investment and tax revenue.

The Council of State, the government's legal agency, has released draft rules for public feedback until Aug 18. These rules allow for the establishment of casinos with an initial 30-year license, which can be renewed for an additional 10 years. The casinos would be located within large entertainment complexes, hotels, convention centres, and amusement parks.

Thailand is joining the United Arab Emirates and Japan in vying for a share of the global casino industry, which is estimated to have generated $263 billion in revenue last year. Galaxy Entertainment Group Ltd, MGM Resorts International, and Las Vegas Sands Corp have expressed interest in investing in casino resorts in Thailand.

Prime Minister Srettha Thavisin, who assumed office less than a year ago, has actively promoted policies to attract foreign investment. Legalizing casinos aims to improve oversight and ensure proper tax collection.

The 500-member House of Representatives has already supported a study favouring the establishment of legalized casinos within large entertainment venues to attract high-spending tourists. The study suggests that Thailand could increase tourism revenue by about 12 billion baht by legalising casinos within such venues.

Liberalization

Although most forms of betting are illegal in Thailand, the country is considering opening casinos to boost its tourism industry, which has been hit hard by the pandemic. This move is part of Thailand's shift towards a more liberal society. In 2022, Thailand decriminalized cannabis and is likely to become the first country in Southeast Asia to legalize same-sex marriages.

According to the proposed bill, the large entertainment venues must be located in specific areas determined by the government and operated by companies registered in Thailand with a minimum paid-up capital of 10 billion baht. Additionally, the bill suggests the establishment of a comprehensive entertainment venue policy panel chaired by the prime minister and an agency to regulate the new industry.

Thai officials have identified potential locations for these entertainment complexes in popular tourist destinations such as Greater Bangkok, Phuket, Chiang Mai, and Chonburi (home to the beach resort Pattaya).

Tourism is vital for Thailand, providing around 20% of jobs and contributing to approximately 12% of the nation's $500 billion economy. Compared to the same period in 2022, foreign arrivals in 2023 increased by about 34% to over 20 million.