Shaping Thailand’s future as an entertainment hub
July 30, 2024
WINNA MEDIA BLOG
Shaping Thailand’s future as an entertainment hub
Here we have outlined the regulatory framework for casinos within the broader context of integrated entertainment businesses as proposed in the Entertainment Complex Act.
The purpose of the act is “to promote and regulate the entertainment business, including casinos, to support tourism and stimulate domestic investment.” ‘Casino’ is defined as a place for gambling or betting.
‘Integrated Entertainment Business’ includes various types of entertainment businesses along with a casino.
TECHNOLOGY ALLOWED
Casinos may operate only within integrated entertainment businesses by licensees and shall be limited to the following types:
MACHINES
Using machines powered by mechanical, electrical, light, or other energy to play by touching, moving, pressing, flipping, pulling, shooting, throwing, rocking, rotating, or other methods that can determine winners or losers, whether by counting points or symbols.
USING DEVICES THAT CAN DETERMINE WINNERS OR LOSERS WHETHER BY COUNTING POINTS OR SYMBOLS.
Licensees are prohibited from organising gaming or gambling through computer or electronic device connections to the internet for external parties to participate in gaming or gambling.
LICENCES
The proposed framework for these entertainment complexes includes issuing up to five initial licences, each requiring a minimum investment of 100 billion Baht (approximately $2.8 billion) with a 30-year term. The gaming tax rate is proposed at 17%, and the resorts must be located within 100 kilometres of international airports.
An entertainment complex must acquire a licence to operate. Licences are valid for 30 years from the date of issuance. An operator must pay 5 billion baht (US$141,705,281) to register, plus an annual payment of 1 billion baht (US$28,341).
Every five years from the date of issuance, the office shall evaluate the licensee’s performance in line with the business form and plan submitted during the licence application and report to the Policy Committee for potential review of the business form and plan.
After 30 years, the Policy Committee may consider renewing the licence for up to 10 years per renewal.
Licensees shall operate integrated entertainment businesses only as specified in the business form and plan submitted during the licence application and must establish appropriate and effective casino control systems and measures.
To be approved for operation, a casino or gaming complex must feature at least four of the following facilities:
- Department store
- Hotel
- Bar
- Restaurant or nightclub
- Sports facilities
- Yacht or sailing club
- Swimming pool or water park
- Amusement park
- Area dedicated to showcasing Thai culture and local products
- Other facilities as required by the Policy Board
Licensees may only operate businesses beyond those specified in the business form and plan submitted during the licence application with the Policy Committee’s approval.
Delegating full or partial management or allowing others to operate on their behalf is prohibited without the Policy Committee’s prior approval.
RESTRICTIONS
Licensees must establish clearly defined areas within casino establishments with controlled access, security, and monitoring to ensure that the following persons are prohibited from entering casino establishments:
- Persons under 20 years of age.
- Persons prohibited from entering by the office’s order.
- Thai nationals who have not registered and paid the fee of 5,000 baht ($142.00)
- Persons with prohibited characteristics as announced by the office.
There will be a fine for allowing prohibited persons to enter casino establishments of up to 100,000 baht.
Licensees must maintain the ratio of Thai and foreign employees in integrated entertainment businesses as announced by the Policy Committee. Employees related to casino operations must meet the characteristics announced by the Policy Committee.
Licensees are prohibited from inviting, advertising, promoting, or organising sales promotion activities related to casinos or allowing others to do so, except as per the criteria, methods, and conditions announced by the Executive Committee.
Licensees may provide credit to players or gamblers in casino establishments under the criteria, methods, and conditions announced by the Policy Committee.
COMMITTEE
A high-powered committee including Thailand’s prime minister, a deputy prime minister and five ministers, will sit on what is termed a “Policy Committee” to steer Thailand’s casino policy effort, according to a recently-released draft of a bill on the matter.
Also on the committee will be the Commissioner-General of the Royal Thai Police, the Secretary-General of the Anti-Money Laundering Office, and the Secretary-General of the Board of Investment.
NEXT STEPS
A committee will be established consisting of the Prime Minister as chairman, the Minister of Finance, the Minister of Tourism and Sports, the Minister of Social Development and Human Security, the Minister of Commerce, the Minister of Interior, the Minister of Justice, the National Police Chief, the Secretary-General of the Anti-Money Laundering Office, and the Secretary-General of the Board of Investment, as members.
This committee shall act as the Policy Committee and Executive Committee responsible for setting the rules and regulations surrounding gaming complexes, until qualified members are appointed. The appointments shall be completed within 30 days of this Act coming into force.
The government shall allocate funds as subsidies to the office for hiring employees or workers to perform tasks within the office temporarily. This must be done within 30 days of this Act coming into force.