As Thailand takes significant steps toward legalizing integrated resort casinos, a new draft regulation has been released for public commentary until August 18. This initiative marks a pivotal phase in discussions that have been ongoing within the nation, following the approval of the draft Entertainment Complex Bill by house members in March.
Regulatory Framework and Oversight
Under the proposed regulations, casino operators in Thailand will be granted 30-year licenses, subject to evaluations every five years, with each renewal period extending up to a maximum of ten years. A dual committee system, comprised of a policy committee and an executive committee, will oversee the operations of these integrated resorts. Both committees will be chaired by the Prime Minister, Srettha Thavisin, who plays a crucial role in smoothing the regulatory landscape and facilitating the successful launch of the casinos.
Additionally, day-to-day regulatory duties will fall under the jurisdiction of a newly formed government entity, the Comprehensive Entertainment Commission. Initially, a governmental committee led by the Prime Minister will supervise the project, incorporating ministers from finance, tourism and sports, social development and human security, commerce, interior, justice, and the commissioner-general of the Royal Thai Police.
Financial Obligations for Operators
The financial commitments for casino operators are substantial. To acquire their first license, operators must pay an initial fee of 5 billion baht (approximately £110.9 million/€129.4 million/$141.9 million), in addition to a 100,000 baht application fee. Annual fees are set at 1 billion baht. For license renewals, the same fees apply, including the annual charges. Additionally, operators needing a duplicate license must pay 100,000 baht for each copy.
Access Fees and Casino Requirements
Thai nationals wishing to enter these resorts will be charged a 5,000 baht entry fee. While specific tax rates are not outlined in the current draft, the regulations mandate that casinos must be part of a larger integrated resort featuring at least four entertainment businesses, such as restaurants, amusement parks, department stores, hotels, or areas promoting Thai culture. Moreover, these resorts must be situated in locations designated by a Royal Decree.
Broader Implications and International Interest
The legal framework for gambling in Thailand currently restricts legal activities to state-controlled horse racing and lotteries, with widespread illegal gambling across the nation. The introduction of integrated resorts represents a significant shift, potentially positioning Thailand as a major gaming hub, surpassing even Singapore in terms of gross gaming revenue according to some analysts.
The prospect of establishing integrated resort licenses has attracted interest from renowned international operators. MGM Resorts International, Wynn Resorts, and Las Vegas Sands have all expressed keen interest in exploring opportunities within the Thai market, signaling a robust future for Thailand’s casino industry.
Current State of Legal Gambling
Despite the excitement and potential, Thailand’s journey toward legal casinos has been gradual, with substantive regulatory advancements catalyzed by the recent leadership of Prime Minister Srettha Thavisin. As the legal framework continues to take shape, the global gaming community watches closely, anticipating Thailand’s emergence as a top casino destination in Asia.
Source:
Thailand reveals draft regulations for integrated resort casinos, igamingbusiness.com, August 5, 2024.