Thailand aims to legalize casinos by 2025, with plans to transform major cities into entertainment hubs, drawing global investors.
The Thailand government is pushing to have its draft law on casino resorts approved by both chambers of parliament in 2025, possibly as early as mid-year.
According to a Bloomberg interview with Prommin Lertsuridej, Secretary-General to Thailand’s Prime Minister, Paetongtarn Shinawatra, the draft law is anticipated to be approved by Thailand’s cabinet by the end of this year. Once approved, it will then be sent to the parliament for further consideration. Lertsuridej was quoted by Bloomberg, saying, “The law should be passed in six months from now at the earliest, so it should be next year to start.”
The proposal, which has garnered significant interest from global investors, is set to reshape the country’s tourism and entertainment industries, potentially generating billions of dollars in revenue.
Several major casino operators have expressed interest in entering Thailand, including Las Vegas Sands, Genting Singapore, and MGM Resorts. The latter recently announced that any potential bid for a Thai integrated resort license would be submitted through its Macau-based subsidiary, MGM China.
This marks a significant step in the government's effort to develop a legal framework for casino resorts that could attract major international players and elevate Thailand’s standing in the global gaming industry. The government has already received expressions of interest from "big investors with world-class experience."
The legislation is being carefully crafted, with a focus on ensuring that the casino resorts are integrated into what the government refers to as "entertainment complexes." These complexes will not only include casinos but are likely to feature hotels, shopping centers, and other amenities aimed at creating a comprehensive tourist experience. The proposal suggests that the casinos will be subject to a gaming tax rate of 17%, a figure that may fluctuate as the industry matures.
Under the draft law, the operation of these resorts will be heavily regulated. The legislation proposes that a casino resort should be owned by a limited company or a public limited company that is registered in Thailand. The company will need to meet a high bar of financial commitment, with a required paid-up capital of at least THB10 billion (approximately US$286.9 million). Additionally, licenses for casino resorts would be granted for an initial period of 30 years, with the possibility of renewal for an additional 10 years, ensuring long-term stability for operators.
The potential economic impact of legalizing casinos in Thailand is substantial. According to a recent report from Citigroup, Thailand's gaming industry could generate as much as US$9.1 billion annually in gross gaming revenue (GGR) once it is fully developed. This would position Thailand’s market as the third largest gaming markets in the world, behind only Macau and Las Vegas. With its prime location in Southeast Asia and its appeal to both regional and international tourists, Thailand could emerge as a major hub for gaming and entertainment.
Morgan Stanley has also weighed in, suggesting that Thailand's gaming industry has the potential to become one of the most lucrative markets globally. The financial services firm estimates that the legal Thai casino market could produce between US$4 billion and US$6 billion annually in GGR. This estimate is based on the assumption that the government grants licenses for casino resorts in key tourist destinations like Bangkok, Pattaya, Phuket, and Chiang Mai. These locations, popular with both international visitors and local travelers, are seen as ideal sites for casino resorts, thanks to their existing infrastructure and tourism appeal.
For the Thai government, the legalization of casino resorts is seen as a way to diversify the economy, attract foreign investment, and create jobs. The move is also expected to stimulate the country’s tourism industry, which has been a vital part of the national economy for years. By offering high-end entertainment options, Thailand hopes to compete with neighboring destinations like Singapore, which has successfully integrated large-scale casino resorts into its tourism strategy.
However, the path to legalizing casinos has not been without controversy. While the potential economic benefits are clear, the issue of gambling addiction and social concerns remains a sensitive topic in Thai society. For years, gambling in Thailand has been largely illegal, with the exception of the state-run lottery and betting on horse racing. As such, the government will need to carefully manage public opinion and ensure that adequate safeguards are in place to address any negative consequences that might arise from the introduction of legal casinos.
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