Thailand could approve legislation governing entertainment complexes by May 2025, paving the way for licensed casinos by the end of the decade.
The law is scheduled to pass through the cabinet by the end of 2024 before heading to the House of Representatives and Senate.
If approved by parliament, casinos would be legalised as part of full-service integrated resorts, similar to Singapore’s IRs. Each resort would have at least four nongaming attractions, such as hotels, stadiums, concert halls, and theme parks, in addition to restaurants, clubs, and shopping corridors.
In an interview with Bloomberg News on November 15, secretary-general Prommin Lertsuridej stated that the law should be passed within the next six months. “So it should be next year to start.”
Then the race will begin. Thai politicians have stated that they intend to open the first of at least five IRs by 2029, one year before Japan’s first IR opens in Osaka. And the rewards might be huge. Citigroup believes that a mature Thai gaming sector may generate $9.1 billion per year (£7.2 billion/€8.6 billion).
At that level, it would easily displace Singapore, the third-largest market after Macau and Las Vegas. Last year, Singapore’s two casinos, Marina Bay Sands and Resorts World Sentosa, generated a total of $3.8 billion.
Running the numbers
The proposed regulation requires license applicants to be registered in Thailand and have a minimum paid-up capital of $286 million. They must pay an upfront charge of $141.9 million for each licence, as well as $28.8 million in annual payments.
The early laws established 30-year licences. Operators will be examined every five years, with each renewal cycle lasting a maximum of ten years. A advantageous tax rate of 17% has been proposed but not finalized.
The government plans to give five casino licenses to begin with: two in Bangkok and one each in Pattaya, Chiang Mai, and Phuket.
According to Prommin, “big investors with world-class experience” have expressed interest in the new market. “So many people have tried to talk with us.” The list contains at least three Macau operators: Galaxy Entertainment Group, MGM Resorts International, and Las Vegas Sands Corporation.
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Checks and Balances
In March, a parliamentary committee voted 253-0 to investigate entertainment complexes that include gambling. Former Prime Minister Srettha Thavisin urged IRs to promote worldwide tourism and investment while also combating unlawful gambling. His successor, Paetongtarn Shinawatra, has adopted the approach.
Gambling is currently outlawed in Thailand, with the exception of the national lottery and approved horse betting. However, this does not mean that Thais do not enjoy gambling.
Fortune magazine referenced a 2021 report from the Thailand Gambling report Center that found that over 30.42 million Thais bet. That represents over 60% of the total population. Many do this illegally. Others go into Laos, Cambodia, or Myanmar to enjoy the numerous casinos that along the border.
To prevent excessive gaming, the casino legislation includes a $144 entry fee for locals. Foreigners might enter for free.
“Legalising casinos in Thailand will help boost income for the country through spending and taxes,” Labor Minister Phiphat Ratchakitprakarn told Nation Thailand in March, when a parliamentary committee first began discussing the issue. “It will also help ease the problem of illegal gambling, especially online gambling, which has been growing rapidly these days.”
Ratchakitprakarn further stated that each entertainment facility would create at least 10,000 direct new jobs. Assuming five IRs, the Employers’ Confederation of Thai Trade and Industry estimates 50,000 or more jobs in a market that has yet to recover from the pandemic.
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