Thailand casino industry welcomes global investors
The conversation surrounding the legalization of casino resorts in Thailand is intensifying, as Deputy Finance Minister Julapun Amornvivat champions a structured approach to implement this ambitious plan. On the other hand, MP Korrawee Prissanantakul suggests the government should take the reins in operating these casinos to maximize national benefits.
Recognizing the potential economic windfall, Amornvivat is urging his colleagues to fast-track the legalization process, which he believes could significantly impact Thailand’s tourism and economic landscape. He has also called upon the ministries of customs, revenues, and excise to develop a tax framework that would govern this emerging industry. With a target to present a comprehensive proposal by mid-October, the government seems poised to make a historical pivot.
Entering the Global Gambling Landscape
Currently, gambling activities in Thailand are limited, permitted only for a national lottery and state-sanctioned horse racing. However, the initiative for casino resorts dates back to 2023, spurred by former Prime Minister Srettha Thavisin. His successor, Paetongtarn Shinawatra, has reaffirmed her commitment to advancing this proposal, aligning Thailand with global trends in gaming.
Much like Japan’s strides towards its inaugural casino in Osaka, Thailand’s intent is to enhance tourism, attract foreign investment, and generate employment opportunities. The government aims to reclaim revenues that currently benefit neighboring countries’ gaming sectors, such as Myanmar and Laos, and diminish the illicit grey market that flourishes despite existing bans.
On March 28, a pivotal draft bill for casinos received overwhelming support in the House of Representatives, with 253 out of 257 votes endorsing its progression. Economic analysts predict that legalizing casinos could inject approximately 394.7 billion baht (£9 billion/€10.9 billion/$12 billion) into annual tourism revenue. Additionally, the expected increase in per-visit spending—estimated to rise by 52% to 65,000 baht—could yield an additional 448.8 billion baht in economic output.
If successful, this initiative could position Thailand as a formidable player in the global gaming market, significantly bolstering the economy of Southeast Asia’s second-largest nation.
Welcoming Major International Gaming Operators
Amornvivat has seemingly dismissed the approach advocated by MP Prissananantakul, who believes the Thai government should directly manage casino operations to ensure national benefit rather than solely favoring private investors.
“This policy would allow all Thais to benefit, not just select investors,” Prissananantakul argued last month.
Conversely, Amornvivat assures that the casino sector will remain open to qualified investors, emphasizing that only limited or public companies registered in Thailand with a minimum paid-up capital of 10 billion baht will be considered. Prospective licensees will face a filing fee of 100,000 baht, a one-time licensing fee of 5 billion baht, and an annual operational fee of 1 billion baht for a license valid for 30 years, with renewals possible every decade.
Major industry players are already expressing interest, including the Las Vegas Sands Corporation, Wynn Resorts, Caesars Entertainment, MGM Resorts, Galaxy Entertainment, and Hard Rock. Other potential contenders like Genting and Melco are also closely monitoring developments.
Encouraging Healthy Competition through Regional Clusters
The strategic blueprint outlines the establishment of up to five casino resorts across Thailand, with two earmarked for Bangkok and additional locations in Chiang Mai, Phuket, and the Eastern Economic Corridor. In a 2023 analysis, industry expert Daniel Cheng noted that such a limited distribution could inadvertently create a series of regional monopolies.
To cultivate competition, Cheng suggests that policymakers consider a “regional cluster concept,” which entails developing three to four complexes in tourist-heavy areas complemented by smaller “Cotai-type” cluster zones in less urbanized regions.
Prissananantakul has expressed support for this competitive framework. Alongside advocating government-operated establishments, he envisions a more diversified gambling landscape that would enable broader wealth distribution within the industry, ensuring that both local citizens and investors alike can partake in the anticipated economic benefits.
