Thailand is moving forward with plans to legalize casinos as part of its strategy to enhance the country’s attractiveness as a tourism destination and attract billions of dollars in foreign investment and tax revenue.
Draft regulations allowing casinos to operate under an initial 30-year license were released for public feedback until August 18 by the Council of State, the government’s legal agency. These casinos will have the option to renew their licenses for an additional 10 years and will be situated within large entertainment complexes that may include hotels, convention centers, and amusement parks, among other facilities.
By seeking to legalize casinos, Thailand joins the ranks of the United Arab Emirates and Japan in vying for a share of the global casino market, which IBISWorld estimates generated $263 billion in revenue last year. Companies like Galaxy Entertainment Group Ltd and MGM Resorts International have been exploring the possibility of establishing casino resorts in Thailand as a contingency amid uncertain conditions in Macau. Recently, Las Vegas Sands Corp expressed interest in expanding into Thailand if opportunities arise.
Prime Minister Srettha Thavisin, who assumed office less than a year ago, has been actively advocating for policies aimed at attracting foreign investments and has supported the legalization of casinos to improve regulatory oversight and ensure proper tax revenue generation.
The 500-member House of Representatives has already endorsed a study conducted by a panel of lawmakers that supports the establishment of legalized casinos in large entertainment venues to attract high-spending tourists. The study indicates that legalizing casinos could boost tourism revenue by around 12 billion baht.
Liberalization
While most forms of gambling are currently illegal in Thailand, a predominantly Buddhist and conservative society, the legalization of casinos could align with the country’s recent shift towards a more liberal approach to revitalize the tourism industry in the wake of the pandemic. In 2022, Thailand became the first country in Asia to decriminalize cannabis and is on track to be the first in Southeast Asia to legalize same-sex marriage.
According to the draft bill, these large entertainment venues would need to be situated in locations designated by the government and operated by companies registered in Thailand with a minimum paid-up capital of 10 billion baht. The proposal also includes the formation of a comprehensive entertainment venue policy panel led by the prime minister and a regulatory body for the new industry.
Thai officials have previously mentioned that potential locations for these entertainment complexes could include popular tourist areas like Greater Bangkok, Phuket, Chiang Mai, and Chonburi, home to the beach resort city of Pattaya.
Tourism is a vital sector in Thailand, accounting for approximately 20% of total employment and making up roughly 12% of the country’s $500 billion economy. As of July 2024, foreign arrivals have surged by about 34%, exceeding 20 million, compared to the same period in 2023.
