Thailand is eager to introduce a new bill nationwide that would establish entertainment centers and casinos, hoping to provide a much-needed boost to its economy. Experts say that the prospect of legalizing casinos brings both benefits and risks to Thailand.
Last week, Thai officials announced that the draft of the "Entertainment Complex Act" is expected to be submitted to the cabinet later this year and will be deliberated in parliament in early 2025.
Officials hope that casinos will boost tourism, increase employment for Thai citizens, and promote economic growth. However, critics argue that casino gambling contradicts traditional Buddhist values and could foster organized crime.
Deputy Finance Minister Julapun Amornwiwat said last week that the Ministry of Finance has completed a public study on the prospects of opening entertainment centers. He also mentioned, "The draft has recently undergone a public hearing as required by the constitution, with 82% of participants expressing support."
James Warren, a lecturer in the Department of Social Sciences at Mahidol University's International College in Thailand, said that building casinos has always been a government goal.
He told Voice of America via email, "The idea of opening casinos has been proposed several times in the past, especially during the tenure of Prime Minister Thaksin Shinawatra."
He added, "Some of the benefits of opening casinos include reducing corruption and the underground economy, while also creating jobs, encouraging investment, and increasing tax revenues," "The latest proposal can be seen as part of the Pheu Thai government's goal to bring the underground economy above ground. Although illegal, it is common."
Most forms of gambling are currently illegal in Thailand. However, illegal casinos have been common for a long time, and authorities frequently conduct raids. Over the years, police have dismantled casinos at various locations, including zoos and football stadiums.
Nevertheless, the Thai government has been eager to introduce legal casinos in the country for the past twenty years.
The current Prime Minister of the Pheu Thai Party, Paetongtarn Shinawatra, whose father, former Prime Minister Thaksin Shinawatra, proposed a 14-point plan to improve Thailand's economy in a speech in August, including investing in entertainment complexes.
Warren said, "The main purpose of the casino proposal is to boost tourism, especially to attract Chinese tourists back. Chinese tourists were the main force behind Thailand's attraction of 40 million visitors in 2019. Of the visitors to Thailand in 2019, 11 million were from China."
The Thai government says that from January to September this year, more than 5.2 million Chinese tourists have visited Thailand, and it is expected to reach 8 million by the end of 2024.
Gary Bowerman, a tourism analyst in Kuala Lumpur, Malaysia, said that building casinos in Thailand would help massively develop the tourism industry.
He told Voice of America, "Thailand sees integrated resorts as the missing piece in its tourism puzzle," "Singapore and Macau have proven that upscale casino resorts can combine high-end hotels, entertainment, dining, shopping, and lifestyle elements, ultimately funded by casinos, thus helping to diversify the tourist demographic."
"Thailand is a large country and would hope that these resorts could provide diversified tourism services for different destinations."
Thai officials hope to build several casinos in places like Bangkok, Chiang Mai, and Phuket, aiming to increase Thailand's GDP by at least 5%.
Tourism is crucial to the economy. This is because the tourism industry is vital to Thailand's economy, which has been generally weak, with the World Bank projecting a GDP growth rate of only 2.4% for Thailand in 2024.
The Thai government expects the number of tourists to reach 36 million by the end of this year and has set an ambitious target to host 40 million visitors by 2025.
However, the prospect of tourists entering Thailand for gambling purposes worries some that casinos might lead to an increase in criminal activities.
Casinos are common in Southeast Asia, including in Cambodia, Laos, Myanmar, and the Philippines. However, the United Nations Office on Drugs and Crime has stated that casinos have expanded local network fraud, with the area already flooded with online scam centers, defrauding victims of billions of dollars annually. There are concerns that this could also happen in Thailand.
Warren said, "During Thaksin's administration from 2001 to 2006, scholars and senators criticized the casino proposal, arguing that gambling violates Buddhist precepts."
Other criticisms include that casinos would foster problem gambling, debt, and related crimes. As for encouraging criminals to come to Thailand, I think it largely depends on the level of regulation of the casinos."
