Posted on: January 13, 2025, 10:32h.
Last updated on: January 13, 2025, 10:41h.
Legislation for introducing casinos in Thailand received approval from Prime Minister Paetongtarn Shinawatra’s Cabinet on Monday, marking a significant development in the Pheu Thai Party’s efforts to boost tourism in the country.
The Cabinet approved a draft law on Monday to permit large-scale “entertainment complexes” in four cities — Bangkok, Pattaya, Phuket, and Chiang Mai. This decision came after a period of public consultation and revisions by relevant agencies.
Paetongtarn, who took office in August, has prioritized improving Thailand’s economy, which heavily relies on tourism.
The goals are to boost revenue, encourage investments in Thailand, and tackle illegal gambling,” Paetongtarn informed reporters.
According to Paetongtarn’s government estimates, large-scale entertainment complexes with gambling facilities, similar to integrated resorts in other parts of Southeast Asia, could increase foreign visitor numbers by 5% to 10%. It is also expected to raise tourism spending from approximately 120 billion baht to 220 billion baht, equivalent to around $3.45 billion to $6.32 billion.
Government Opposition
As a member of the influential Shinawatra family, Paetongtarn is the fourth family member to serve as Thailand’s prime minister.
The Shinawatra family, known as one of the wealthiest in the country, aims to increase their wealth through the development of casino resorts under the guidance of Paetongtarn’s father, Thaksin Shinawatra.
Thaksin, who served as the 23rd prime minister of Thailand from February 2001 to September 2006, has encouraged his daughter to advocate for Singapore-style casino destinations. The family, being billionaires, would likely bid on one of the five development opportunities if the Cabinet’s casino bill gains support in the National Assembly.
Although Paetongtarn’s Pheu Thai Party holds the majority, there is opposition, including from the Council of State, the government’s legal advisor.
The Council, currently reviewing the Cabinet’s casino draft before it goes to Parliament, has initially opposed the legislation. They argue that authorizing new forms of legal gambling, beyond the state lottery and parimutuel wagering, goes against Thailand’s cultural values.
Additionally, the Council has raised concerns about the draft bill’s effectiveness in eliminating illegal gambling activities and wants specific requirements in the legislation for entertainment complexes, including hotels, convention halls, non-gaming attractions like amusement parks, and retail shopping.
Jobs, Revenue
As the ninth-largest economy in Asia as of 2023, with a GDP of about 18 trillion baht (US$520 billion), Thailand is classified as a newly industrialized country. The industrial and service sectors are the primary drivers of the economy.
The COVID-19 pandemic severely impacted Thailand’s economy by disrupting tourism, which previously contributed almost 20% to the GDP. Casinos are expected to attract new visitors and create between 9,000 to 15,000 jobs.
Government projections suggest that a mature casino market with five properties could generate annual gross gaming revenue of around US$9.1 billion. With a proposed tax of 17% on GGR in the draft bill, the state could collect over $1.5 billion annually from casino gambling.