The Thai Fiscal Policy Office will submit public feedback on the proposed draft casino resort bill to the Cabinet.
Thailand.- The Fiscal Policy Office (FPO) has reported that 45 suggestions will be put forward based on feedback from public hearings on the draft bill to legalize casino entertainment complexes in the country. They will be sent to the Cabinet for deliberation.
According to a report by The Nation, one suggestion was to change the bill’s title from “Entertainment Complex with Casino” to “Integrated Resort Act.” Others include increasing the number of entertainment activities allowed in each complex from four to seven and including areas for promoting Thai culture. It was also suggested that the proportion of Thai shareholders in each entertainment complex should range from 30 to 51 percent.
There are also several proposals on license validity, ranging from a recommendation to reduce it from 30 to 10 years or extend it to 50 or 60 years. Some also proposed limiting the number of entertainment complexes to between three and seven, while it was also suggested that complexes should be located in major tourist destinations such as Phuket, Chiang Mai, Chonburi, Rayong, or Hua Hin, as opposed to Bangkok.
Another suggestion said casino entry fees for Thai nationals should be set at THB1,000 (US$30) to THB2,000 per time or THB20,000 to THB40,000 per year.
A report from JP Morgan has predicted that integrated resorts (IR) in Bangkok could collect between US$1.5 bn and US$5bn in revenue annually and between US$0.4bn to US$1.5bn in earnings before interest, taxation and depreciation (EBITDA) with an internal rate of return range of 12 percent to 29 percent.
Analysts also said legal casinos could add from 0.3 percent to 1 percent to the country’s gross domestic product (GDP) and boost tax revenue by 0.4 percent to 1.2 percent.
MGM Resorts International and Galaxy Entertainment Group have already shown interest in the possibility of casino resorts in the country. Investment group CLSA said Las Vegas Sands and Wynn Resorts are also interested. The Royal Turf Club of Thailand (RTCT) is also planning to invest THB200bn (US$5.88bn) in an IR with a casino.
See also: Legalization of casinos in Thailand: call for discussions on tax revenue collection
