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Casino Proposal Gains Traction

Casino Proposal Gains Traction

The ruling Pheu Thai Party has defended its casino-entertainment complex initiative, arguing that legalizing the underground gambling sector will enable the government to collect tax revenue from it.

In a statement released on Pheu Thai’s webpage on Saturday, the party emphasized that legalizing underground gambling activities could generate tax revenue exceeding 50% of GDP, which would significantly boost the economy and fund educational development, among other projects.

According to the ruling party, casino entertainment complexes would allow Thailand to tap into the “fun” economy, estimated to be worth around US$13.7 trillion. This initiative is part of the policy statement presented by Prime Minister Paetongtarn Shinawatra in parliament on September 12.

“Over the last 20 years, there have been attempts to legalize what is considered illegal economic activity, but those efforts have encountered resistance from various segments of society. However, recent governments have been exploring this possibility,” the statement noted.

Referencing a House committee report on the proposal, Pheu Thai highlighted that the fun economy—including tourism, sports, entertainment, and the MICE (meetings, incentives, conferences, and exhibitions) sectors—has seen consistent growth.

The global market value of the fun economy is estimated to be US$13.7 trillion (approximately 483 trillion baht), and the government aims to tap into this potential to increase national income.

“One of our strategies is to properly legalize and tax casinos,” the party stated.

Pheu Thai also cited data from the Fiscal Policy Office indicating that the global market value of casino-related entertainment complexes reached US$1.5 trillion (53 trillion baht) in 2022, with projections suggesting it will grow to US$2.2 trillion by 2028.

The government is moving forward with a bill to legalize casino operations within these entertainment complexes. According to government sources, the Finance Ministry has completed drafting the Entertainment Complex Act, which will undergo a public consultation process as stipulated by Section 77 of the constitution.

Following this public hearing, the bill—along with any feedback gathered—will be submitted to the cabinet for consideration.

The proposed bill includes 65 sections, stipulating that an entertainment complex must obtain a license to operate, valid for up to 30 years. Operators would need to pay a registration fee of 5 billion baht, in addition to an annual fee of 1 billion baht. Each complex would be evaluated every five years, and licenses can be renewed for an additional ten years after the initial period.

Individuals under the age of 20 will be barred from entering these venues. While the complexes will be open to foreign nationals, Thai citizens will be required to pay an entrance fee of 5,000 baht.

The legislation also proposes the establishment of a policy board chaired by the prime minister, responsible for setting the regulations governing these gaming complexes.

Former government spokesman Chai Wacharonke previously mentioned that the project is expected to generate at least 12 billion baht in taxes for the country in its first year.

A House committee study examined three main aspects: the economic, social, educational, and cultural impacts of establishing such venues in Thailand; the business structure and revenue collection methods; and the legality and criteria for laws relating to entertainment and gambling regulations.

Potential locations for this project include five venues: two in Bangkok and one each in the Eastern Economic Corridor, Chiang Mai, and Phuket.

However, Pariyes Angkurakitti, a spokesperson for the opposition Thai Sang Thai Party, criticized the initiative, expressing concerns that lax law enforcement could undermine efforts to regulate the new casino industry effectively.

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