Next year, Thailand hopes to legalize casinos to attract gamers from around the world

Thailand hopes to legalize casinos in order to attract foreign investment and increase tax revenue. This might be advantageous for international operators who have been advocating for the legislation for a long time in order to capitalize on Thailand’s reputation as a popular travel destination.

Prommin Lertsuridej, the secretary-general of Prime Minister Paetongtarn Shinawatra, stated that the government strives to get a measure known as the “entertainment complex” approved by both houses of parliament in 2025. This bill would permit casinos to be located in major venues.

Before being reviewed by the House of Representatives and the upper house Senate the next year, the law is anticipated to be passed by the Cabinet later this year. Passing a bill in three requisite readings usually takes months for each house.

“The law should be passed in six months from now at the earliest, so it should be next year to start,” Prommin told Bloomberg News in an interview in Bangkok. Several administrative steps will still be required once the bill clears the parliament before casinos can start operating, according to him.

If casinos are fully operating in roughly six years, Thailand might become a major participant in the global gambling business, according to Citigroup Inc.

According to research released this week by Citigroup analysts, the country’s gross gaming revenue may reach $9.1 billion when fully scaled, making it the third-largest market in the world, behind Macau and Las Vegas and ahead of neighboring Singapore.

According to reports, MGM Resorts International and Galaxy Entertainment Group Ltd. are researching possible prospects in Thailand as a safety net against Macau’s uncertain future. Las Vegas Sands Corp. has expressed interest in growing in Thailand.

The Thai government has received interests from “big investors with world-class experience,” Prommin said, without giving specific names. “So many people have tried to talk with us,” he said.

Under the proposed legislation, entertainment complexes will be operated by Thai-registered companies with a paid-up capital of at least 10 billion baht ($286 million). A license for 30 years will cost 5 billion baht in the first year and 1 billion baht each for all the remaining years. The permit can be extended for up to 10 years upon each renewal.

A committee chaired by the prime minister will later propose finer rules, including the income tax rates for casinos, the number of licenses, and the locations. At least four other types of businesses must be housed inside the complexes alongside casinos, which may include department stores, hotels, amusement parks, restaurants, or nightlife venues, according to the bill.

Five casino licenses may be first granted by the government in well-known tourist locations, including two in Bangkok and one each in Pattaya, Chiang Mai, and Phuket, according to local media sources. In order to draw in high-spending tourists, the lower house of parliament supported a study earlier this year that recommended locating casinos inside sizable entertainment centers.

Despite the fact that the majority of betting has been prohibited in Thailand since 1936, a 2021 survey conducted by Thailand’s Gambling Survey Center revealed that about 60% of Thais still gamble. Some Thais also travel to neighboring Cambodia, Laos, and Myanmar to wager at casinos there.