Published on: October 2, 2024, 06:53h.
Updated on: October 2, 2024, 06:53h.
A Thai finance leader is urging policymakers to finalise casino gaming legislation by the middle of this month and is emphasizing the inclusion of provisions to allow global companies to bid for licenses in Thailand.
Deputy Finance Minister Julapun Amornvivat disagreed with a proposal from parliament member Korrawee Prissanantakul to have the planned entertainment complexes, including gaming venues, run by the government. While Amornvivat is encouraging the Thai customs, excise, and revenue departments to develop entertainment district plans by mid-month, he advocates for a cautious approach.
We need to evaluate the project thoroughly to avoid negative impacts on the economy and society,” stated the deputy finance minister in a recent interview with The Bangkok Post.
Thailand recently concluded a public comment period on the 22-page Draft of the Complete Entertainment Business Act B.E. This period ran until August 18 and it appears that Thai citizens support the introduction of casino hotels to boost the country’s tourism industry, a major driver of economic activity.
Leading Gaming Companies Eyeing Thailand
With limited growth opportunities, especially outside the US, major players in the gaming industry are considering entering Thailand.
Las Vegas Sands, MGM Resorts International, and Wynn Resorts are among the US operators potentially seeking Thai licenses. MGM has indicated that its efforts in the country would be overseen by its MGM China division, which manages two integrated resorts in Macau. Given its significant presence in the Asia-Pacific region, Genting is also a contender for a Thai casino license.
Amornvivat informed The Bangkok Post of a vision where any private sector entity can apply for a permit in Thailand as long as it meets certain criteria, including an initial investment of nearly $1.3 billion, an application fee of around $13,000, and a licensing fee of approximately $640 million.
Overall, this would amount to a minimum investment of $2 billion per operator to establish a casino in Thailand, which may be appealing as it is lower than the financial commitments in other regions.
Attractive Casino Tax in Thailand
Local taxes are a concern for gaming companies, with no consistency across regions. However, Thailand seems to be aiming to attract the industry in this regard.
Experts anticipate Thailand opting for a 17% tax on gross gaming revenue (GGR) – the same rate as in Singapore. This tax rate is seen as attractive and competitive with other casino markets in the region.
Recent reports indicated that policymakers supportive of the casino plan in Thailand wish to see three gaming venues in the capital city of Bangkok and at least two more in rural areas.