Thailand’s move toward legalizing casinos is making progress, with the draft law on entertainment complexes expected to be presented to the cabinet by the end of this year, according to Deputy Finance Minister Julapun Amornvivat. The bill, which seeks to regulate and legalize casino resorts within Thailand, will then move to the House of Representatives for parliamentary review during its upcoming session, set to reconvene in mid-December 2024 and continue until April 2025.
Strong Public Support for the Bill
The proposed law, which has been in development for several months, recently underwent a public hearing as required by Thailand’s constitution. During this consultation process, it garnered 82% approval from participants, marking a significant milestone for its advancement. This is the first time this figure has been made public, indicating a solid backing for the law’s implementation.
The draft law aims to establish legal casino resorts as part of broader entertainment complexes, a first for Thailand. These complexes are expected to stimulate significant economic growth, both in terms of foreign tourism and local employment. According to a study conducted by the Fiscal Policy Office (FPO), the establishment of these entertainment venues could increase the number of foreign tourists by an additional 5 to 20%, raising per capita spending from THB40,000 (approximately $1,183) to THB60,000.
Economic Benefits and Employment Opportunities
The economic potential of these entertainment complexes extends beyond tourism. Julapun highlighted that the construction phase alone would attract substantial investment, while the operation of the resorts is expected to create numerous jobs for Thai citizens. The deputy minister expressed hope that local residents would be employed within the entertainment complexes and emphasized the need for training programs to ensure that employees possess the necessary skills.
In addition to boosting the economy through tourism and job creation, the draft law also seeks to regulate how these complexes operate. Private investors interested in these projects must meet certain criteria, including a minimum registered capital of THB10 billion (around $300 million). Proposals will be evaluated based on the types of projects they offer and their potential to contribute to Thailand’s tourism industry.
Adjustments After Public Hearing
Following the public consultation, the draft legislation received 45 recommendations for improvement. One of the key suggestions was to rename the bill from the “Entertainment Complex with Casino” to the “Integrated Resort Act,” to better reflect the variety of amenities these complexes will provide. Participants also recommended expanding the number of allowable entertainment activities from four to seven, which would include cultural showcases that highlight Thai heritage and enhance the resorts’ appeal.
Another significant recommendation pertained to the ownership structure of these complexes, with proposals advocating for Thai nationals to hold between 30% and 51% of the shares. The duration of licenses was also a key point of discussion, with suggestions to either reduce the validity from 30 years to 10 years or, alternatively, extend it to 50 or 60 years. Furthermore, it was proposed to limit the number of entertainment complexes to between three and seven, strategically located in popular tourist destinations such as Phuket, Chiang Mai, and Hua Hin, rather than in Bangkok.
Licensing and Regulations
The draft law also sets forth various regulations for both operators and Thai citizens wishing to access the casino facilities. The law proposes that the entry fee for Thai nationals should not exceed THB5,000 (approximately $148) per visit. Additionally, licenses for operating the entertainment complexes will be issued for a period of 30 years, with an option for renewal every 10 years. The initial licensing fee is set at THB5 billion (about $148 million), with an annual maintenance fee of THB1 billion ($30 million).
The draft law is a major step forward in Thailand’s efforts to legalize and regulate casino operations within its borders. By offering significant economic opportunities and attracting private sector investment, the bill aims to position Thailand as a major player in the global entertainment and tourism industry. Once the cabinet and parliament finalize the legislative process, Thailand could see its first legal casinos within a few years, further enhancing its appeal as a tourist destination.
Source:
Casino Law Expected to Be Sent to Cabinet This Year, bangkokpost.com, October 24, 2024.