Thailand Moves Towards Legalizing Gambling

Legalizing gambling in Thailand is a strategic move to revive the tourism industry, which has been severely affected by the COVID-19 pandemic.

On January 13, the Thai government officially approved a draft law to establish entertainment complexes, including legalizing gambling activities in these areas.

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Attracting Visitors, Creating Jobs

According to the Bangkok Post, Thai Deputy Finance Minister Julapun Amornvivat said the bill on integrated entertainment complexes will create a legal framework for integrated complexes including shopping malls, hotels, amusement parks, and sports arenas. This is in line with the government’s policy of developing artificial tourist destinations.

Private companies wishing to operate these facilities must have a minimum charter capital of 10 billion baht (US$285 million). In the complex, the gambling casino will only occupy 5% of the area. With the rest reserved for entertainment facilities and other services. According to the draft, foreigners will be exempt from entry fees. While Thai citizens will have to pay a fee of 5,000 baht (about US$144). People under 20 are prohibited from entering the casino.

Although the construction time and location have not been announced, potential areas mentioned include Bangkok, Phuket, Chiang Mai, and Chonburi. Julapun expects the complexes to boost international visitors by 5-10%, boost low-season spending by 13% and create 9,000-15,000 jobs.

Revenue from these complexes could reach 12-40 billion baht (US$340 million-1.14 billion), mainly from hotels and other businesses rather than casinos. In addition, the bill is expected to help tackle illegal gambling. As Thailand currently only allows legal betting on horse racing and lotteries.

“The goal is to increase revenue, support investment and tackle illegal gambling,” Thai Prime Minister Paetongtarn Shinawatra stressed. The bill is currently awaiting review by the Office of the Council of State before being put to a vote in the National Assembly.

Opportunities and Challenges When Thailand Legalizing Gambling

The Thai government hopes that the casino development model will be as successful as Singapore. In 2010, Singapore opened its first casino during the Lunar New Year, then expanded with Marina Bay Sands – the largest resort and casino here. The success of these projects has prompted Singapore to expand more entertainment complexes by 2024.

The Thai private sector welcomes this plan but also has cautious opinions. Mr. Koraphat Vorachet, head of research at Krungsri Securities (KSS). According to his prediction, opening this type of business could attract 20 million international tourists a year. And bringing a big boost to tourism-related industries.

Although it requires an investment of about 8 billion USD and a construction time of 5-10 years, KSS estimates that annual tax revenue could reach 1.7-2.4 billion USD. Several major companies, including Galaxy Entertainment Group, MGM Resorts International and Las Vegas Sands Corp. They have expressed interest in the Thai market.

However, Thanavath Phonvichai, president of the University of the Thai Chamber of Commerce. Warned that careful preparation is needed to ensure that the main goal is to promote tourism. He suggested maintaining a higher ratio of international visitors to locals to avoid problems arising from excessive gambling as in South Africa.