What is the regulatory framework for casinos in Thailand?
September 1, 2024What is the regulatory framework for casinos in Thailand?
September 1, 2024In April 2024, Thai Prime Minister and Finance Minister, H.E. Mr. Srettha Thavisin stressed the government’s commitment to boosting Thailand as a tourism hub to drive the economy and bring prosperity to the country.
“The goal is to establish Thailand as a leading destination for tourists from around the world.”
The government’s target is 3.5 trillion Baht in tourism revenue this year, to be achieved by a multi-faceted strategy, including improving tourism information, travel linkage between hotspot and hidden gem destinations, and building Thailand into a world class event hub.
As part of this strategy, the vision is to build large scale “entertainment resorts’, encompassing a variety of activities, including casinos. It is hoped that these integrated resorts will attract a higher class of visitor who stays longer and spends more.
The government’s framework, which is currently being reviewed by the Cabinet, includes up to five licences initially for entertainment complexes. The minimum investment would be 100 billion Thai baht ($2.8bn) with a 20-year licence term. A 17% gaming tax rate has been proposed and the complexes are to be located within 100km of international airports, although the framework provides for a “Bangkok-adjacent” site.
Potential locations for a site near Bangkok include Bang Na to the South, where there is currently an enormous shopping mall, and Muang Thong Thani to the North, home to IMPACT, a commercial complex featuring an arena, convention centre, two malls and nearly 1,000 hotel rooms, attracting more than 10 million visitors annually.
Other potential locations in the Kingdom are the beach resort of Pattaya, 150km South of Bangkok and part of the Easter Economic Corridor. Its airport, U-Tapao, has been given permission to expand to accommodate 60 million pasengers per year.
Phuket, an island off the south-west coast, and Chiang Mai in the north of the country have also been touted as potential sites, although local opposition may prove stronger in these locations.
The bill may be introduced in Parliament this month and Prime Minister Settha Thavisin has set an ambitious goal of passing the law by early 2025.
It remains to be seen whether Thailand’s regulations will be robust enough for operators in other major jurisdictions such as North America, Singapore and Australia, will be enticed. However, apparently leading Thai business groups are also showing interest in being involved in the developments.
Gambling, apart from the national lottery or horse racing, is currently illegal in Thailand, although many of its citizens travel to neighbouring Cambodia, Laos and Myanmar to play and these properties also have Thai investors. However, illegal underground gambling is rife – one of the reasons to bring it under government control – so finessing local play regulations such as entry requirements and having a responsible gaming program to support vulnerable people is key.
The two-year timetable for the opening of a casino may be ambitious, but it would place Thailand at the very heart of the Asian casino market.