Thai list-MP Chulapong Yukate will submit a second bill to legislate for casino resorts in Thailand. A final decision is expected to be made by April 12, 2025.
Thailand’s path to legalizing casinos is gaining momentum as a second bill focused on “Entertainment Complexes” was announced on December 3, 2024.
The bill, introduced by Chulapong Yukate, a member of the People’s Party and a prominent Thai list-MP (Member of Parliament), was unveiled at the inaugural Thai Entertainment Complex Summit which is organized by Winna Media. As the lead media partner of this Summit, Asia Casino News (ACN) attended this event which is ongoing in Bangkok until December 4.
Yukate, a corporate finance lawyer by profession, aims to submit the bill to the Thai National Assembly for consideration on December 12, 2024. If the bill progresses as planned, a final decision on its passage is expected by April 12, 2025.
The bill proposes a new framework for the establishment of casino resorts, which are defined as multi-use "Entertainment Complexes" that could include casinos, hotels, shopping malls, restaurants, bars, and potentially sports facilities. This new approach is distinct from previous attempts at liberalizing Thailand’s casino laws and focuses on a mixed-use model that blends entertainment, leisure, and gaming.
Defining the Entertainment Complex Model
Yukate pointed out that an ideal Entertainment Complex would be similar to a Thai shopping mall, “with five to 10 percent of its area [about 2,000 acres] of its area for a casino.”
He likened it to a modern retail space, but one that integrates gaming and other entertainment options. For example, a typical complex might span over 2,000 acres, incorporating a variety of attractions in addition to the casino. The key, Yukate explained, is the business structure.
The bill proposes that the ownership of these complexes can be in the hands of anyone, even those without experience in managing casinos. If the owner lacks the necessary expertise, they would be allowed to subcontract casino management to specialized casino operators, ensuring that the gaming experience is professional and well-regulated.
Yukate’s bill also offers flexibility to foreign investors, particularly regarding the ownership structure. Traditionally, Thai law limits foreign ownership of businesses in the country to a 49 percent stake, while local ownership must be at least 51 percent. However, Yukate’s bill aligns with the model used in Thailand's telecommunications sector, where foreign investors can hold greater shares without the same restrictions. In the case of the Entertainment Complexes, the bill would allow for more substantial foreign investment, bypassing the traditional percentage limits on foreign ownership.
The Government’s Role in Oversight
The bill outlines a clear governance framework for managing the casino resorts. A 15-member Entertainment Complex Policy Committee would be established, with Thailand’s Prime Minister serving as its chair. This committee would play a central role in formulating policies and overseeing the development of Entertainment Complexes in the country. In addition to the policy committee, a separate Entertainment Complex Management Committee would be formed to handle day-to-day operational decisions. This committee would also have 15 members, with a chairperson appointed by the Prime Minister.
The legal framework also includes provisions for penalties and fines. While Thailand’s existing laws for illegal gambling would remain in place, the bill introduces a fine of 500,000 Baht (US$ 14,556) for any violation of the casino regulations. The bill does not propose imprisonment for such violations, though serious infractions related to illegal gambling would still be punishable under current laws. Moreover, Yukate has emphasized the importance of establishing a fund to help individuals struggling with gambling addictions, a significant step toward addressing the social impacts of legalizing casinos.
International Investment and Expertise
A key feature of Yukate’s proposal is the emphasis on international investment and expertise. He made it clear that for Thailand’s new casino resorts to succeed, they will need significant foreign involvement. “We really need international investment,” Yukate said during his address. “The law does not require a local director for the Entertainment Complexes. Any nationality can be a director, which is a huge advantage for attracting international expertise.”
This open approach to foreign leadership is seen as crucial for building world-class entertainment complexes that can compete on the global stage. With Thailand’s long-standing ban on casinos, the country has not had the opportunity to develop the expertise needed to run large-scale gambling operations. By allowing foreign investors to take a more prominent role in the ownership and management of these resorts, the bill seeks to ensure that Thailand can leverage the experience of established casino operators to build a thriving, sustainable industry.
Next Steps and Timeline
Yukate’s bill is expected to undergo a thorough review in the Thai National Assembly. The first reading of the bill is scheduled for December 12, 2024, with subsequent readings and responses scheduled over the following months. A final decision on the bill is expected by April 12, 2025. If approved, the bill will then face a 180-day waiting period before it is published in the government gazette, officially becoming law.
Once the legislation is enacted, the Thai government will begin issuing licenses for the new Entertainment Complexes. While the bill does not specify the number of complexes to be built, there have been reports that the government is considering allowing up to five resort licenses, with potential locations in major tourist destinations such as Bangkok, Phuket, Chiang Mai, and the Eastern Economic Corridor. Rumors have also suggested that Pattaya, a popular beach resort city, could be one of the key locations for the new casino resorts.
A New Era for Thailand’s Tourism and Economy
The introduction of legal casinos could significantly impact Thailand’s tourism and economy. The government is hopeful that the development of Entertainment Complexes will attract international tourists, increase job opportunities, and generate substantial tax revenue. Thailand has long been a popular tourist destination, known for its vibrant culture, beaches, and hospitality. By adding legalized casinos into the mix, the country aims to expand its appeal to high-end international visitors and create a more diversified tourism experience.
However, the bill is not without its critics. Some fear that the legalization of casinos could lead to increased gambling addiction and other social problems. Yukate addressed these concerns by proposing a dedicated fund to help those affected by gambling issues, signaling the government's commitment to minimizing the negative social impacts.
In the coming months, Thailand’s government will closely monitor the progress of the bill. If passed, it could usher in a new era for the country, one that balances tourism and entertainment with responsible regulation and oversight. With foreign investment and expertise playing a central role, Thailand is set to become one of the next major destinations for legalized casino resorts in Asia.
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