Thailand takes a big step toward gaming hub goal

Thailand's cabinet has approved in principle a bill seeking to legalize casinos with the government pitching the initiative as a major step to boost tourism and tackle rampant illegal gambling in the Southeast Asian nation.

The draft legislation will be scrutinized by the Council of State before it can be sent to the lower house of parliament for discussion and approval, Prime Minister Paetongtarn Shinawatra said yesterday.

The entertainment complex bill proposes casinos to be housed within large venues that will also feature hotels, convention centers and amusement parks.

Thailand can emerge as a major player in the global gaming industry if casinos become fully operational in about six years from now, Citigroup said last year.

Galaxy Entertainment and MGM Resorts are said to be studying potential opportunities in Thailand as a hedge against uncertain prospects in Macau. Las Vegas Sands has said it would be interested in expanding to the country.

Paetongtarn said the government is keen to ensure the entertainment complexes become a reality sooner as it can boost tourism and the overall economy.

While most types of betting have been banned in Thailand since at least 1936, almost 60 percent of Thais gamble, a 2021 study found. Some Thais also travel to bet in casinos operated in neighboring Myanmar, Laos and Cambodia.

"This initiative aims to promote tourism, facilitate investments and address the illegal gambling problem," Paetongtarn said. The entertainment venues can boost GDP and lift tourism revenue, she said, citing the example of Singapore.

The draft bill proposes to allow Thai-registered companies with a paid-up capital of at least 10 billion baht (HK$2.24 billion) to operate integrated resorts.

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.

Each entertainment complex may require about 100 billion baht in investment and could generate as many as 15,000 jobs, deputy finance minister Julapun Amornvivat said.

The overall revenue boost to tourism is seen between 120 billion baht to 40 billion baht, with the government netting 12 to 40 billion baht annually, he said.

Integrated resorts in "Thailand are likely to target Chinese and Malaysian travelers, as they make up the country's biggest tourist arrivals," Bloomberg analysts wrote in a report.

Thailand expects arrivals to jump to a record 40 million this year, up from 35.5 million last year. The sector accounts for about 12 percent of GDP and nearly a fifth of jobs.

Once the Council of State vets the draft bill, the cabinet will again review the legislation as it concerns several government agencies, interior minister Anutin Charnvirakul said.

A panel 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 also include department stores, restaurants or nightlife venues, according to the bill.

The government may initially grant five casino permits in popular tourist destinations, with two in Bangkok and one each in Pattaya, Chiang Mai and Phuket, according to local media reports.

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