Thailand casino bill gets cabinet support

Posted: January 13, 2025, 10:32 pm.

Last updated: January 13, 2025, 10:41 pm.

Legislation to bring casinos to Thailand received the blessing of Prime Minister Patongtaran Shinawatra's Cabinet on Monday, a major development in the Pheu Thai Party's aspirations to boost tourism in the kingdom.

On Monday, Patongtarn's Cabinet signed off on a draft law that seeks to authorize large-scale “entertainment complexes” in four cities – Bangkok, Pattaya, Phuket and Chiang Mai. It received the Cabinet's blessing after a public consultation and revision period from concerned agencies.

Patongtarn, who took office last August, has made it a focal point as her prime minister to improve Thailand's economy, which relies heavily on tourism.

The aim is to increase revenue, support investment in Thailand and solve illegal gambling,” Patongtarn told reporters.

Patongtarn's government estimates that large-scale entertainment complexes featuring gambling, often called integrated resorts elsewhere in Southeast Asia, will increase the number of foreign visitors by 5% to 10%. Tourism spending is expected to increase from about 120 billion baht to 220 billion baht, or about $3.45 billion to $6.32 billion.

government opposition

Patongtaran is a member of the powerful and influential Shinawatra family. Patongtarn is the fourth member of the family to serve as Prime Minister of Thailand.

This family is one of the richest people in the country. Under the direction of his father, Thaksin Shinawatra, Shinawatra hopes to become even richer through the development of casino resorts.

The Pheu Thai Party of Patongtarn is the controlling party. But there is opposition, including from the State Council, the government's legal advisor.

The Council, which is reviewing the Cabinet casino draft before taking the legislation to Parliament, has initially opposed the measure. The body argues that authorizing new forms of legal gambling, which is currently limited to state-run lotteries and parimutuel wagering, is not consistent with the state's historical values.

The Council has also expressed concern that the bill as drafted does not go far enough to ensure that legal gambling will weed out illegal enterprises. The government advisor additionally wants the law to come with minimum requirements for entertainment complexes such as hotels, convention halls, non-gaming attractions such as amusement parks, and retail shopping.

jobs, revenue

Asia's ninth largest economy by 2023 with a GDP of approximately 18 trillion baht (US$520 billion), Thailand is considered a newly industrialized country, or a nation that has not yet reached developed status. The industrial and service sectors remain Thailand's primary economic drivers.

Government forecasts believe a mature casino market consisting of five properties will generate annual gross gaming revenues of approximately US$9.1 billion. With the draft bill suggesting an effective tax of 17% on GGR, the state could receive more than $1.5 billion per year from casino gambling.