Thailand’s New Prime Minister Highlights Benefits of Casino Entertainment Complexes

In her inaugural address to Parliament on September 12, 2024, Thailand’s new Prime Minister Paetongtarn Shinawatra has reaffirmed her commitment to tackling the nation’s economic challenges through a series of ambitious reforms. Central to her economic strategy is the plan to legalize and tax aspects of the “informal economy” and the “underground economy,” which is taken to be a reference to the government’s plan to legalize casinos.

According to the Associated Press, Paetongtarn said the Thai government will generate new income by legalizing and taxing the “informal economy” and the “underground economy.”

Paetongtarn also announced the government’s commitment to safeguarding small businesses from unjust competition by foreign operators, particularly on online platforms. Her approach reflects a broader strategy to stimulate Thailand’s sluggish economy while managing the impact on domestic businesses.

The legalization of casinos is a key component of the draft law put forward by the Finance Ministry. The draft proposes that casinos operate within integrated resorts that will also include hotels, convention halls, shopping malls, and theme parks. Access to these casinos will be restricted to foreigners and Thai citizens, who will be required to pay a 5,000 baht (US$148) entrance fee.

Prime Minister Shinawatra’s reference to the informal and underground economies was seen as a signal of her support for this initiative. Although she did not provide extensive details in her speech, the proposal aligns with her father’s, former Prime Minister Thaksin Shinawatra’s, earlier statements about advancing the legalization of the casino industry.

The draft bill under discussion suggests the development of multiple integrated resorts across Thailand, including up to three in Bangkok. These resorts are designed to include not just casinos but also a range of tourism facilities, such as hotels, convention centers, retail spaces, theme parks, water attractions, and dining options. However, casino operations are expected to occupy only about 10% of the total resort area.

The proposed changes mark a significant shift in Thailand’s approach to gambling and could potentially transform the tourism landscape in the country. The government’s push for legalization is expected to draw substantial revenue and increase tourism, providing a much-needed boost to the Thai economy.

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