According to reports from Thailand, Prime Minister Paetongtarn Shinawatra has confirmed that the Thai cabinet has approved a draft law to legalize land-based casinos.
The construction of integrated resorts has long been on Thailand's agenda, with several operators expressing interest in this potential new market.
Following last year's opening of Mohegan's Inspire resort in Korea, more major casinos are gradually entering the Asian market.
With the success of Marina Bay Sands in Singapore, and some questioning in Macau, Southeast Asian neighbors are exploring the possibility of boosting tourism development through this route.
Just last week, reports surfaced about discussions on the legalization of online gambling in Thailand.
However, this new development is a significant move for the country's land-based casino resorts.
Currently, state-controlled horse racing and the official lottery are the only legal forms of gambling in Thailand, although there are some doubts about the future of the country's N3 lottery.
The Bangkok Post quoted the Prime Minister telling reporters: "Legalization will protect the public and bring more national revenue."
Although this is just a draft bill approved by the cabinet, it paves the way for further legalization.
Prime Minister Paetongtarn Shinawatra is the daughter of former Prime Minister Thaksin Shinawatra, who publicly announced his support for the legalization of casinos in Thailand in August this year.
After the initial draft of the "Casino Act" was published, nationwide support for regulated casinos has been growing. Both the former Prime Minister and the current Deputy Prime Minister support the bill, and some major corporations seem to be following suit.
In July 2024, four of Macau's six major casinos expressed interest in entering Thailand, namely MGM China, Galaxy, Sands, and Wynn Resorts. Previously, reports indicated that MGM Resorts and Galaxy Entertainment Group were exploring the possibility of opening casino resorts in Thailand, while Genting Group also stated that it is closely monitoring developments.
Although the Thai public's interest in the gambling industry is undeniable, the current Deputy Prime Minister Anutin Charnvirakul and the Thai People's Party are firmly opposed to the full legalization of the gambling industry in Thailand.
Charnvirakul emphasized that his support for the casino bill is based on whether the legislation complies with Thailand's legal and moral standards and must make a positive contribution to the economy. Clearly, the government is slow in making decisions. However, progress is evident, and all the right voices have been heard.
The provisions proposed in the draft "Casino Act" would allow casinos to obtain an initial 30-year license, with an option to renew for another 10 years. According to the bill, casinos must be located within large entertainment centers, and gambling revenue will be taxed at 17%.
In addition to a 100,000 Thai Baht application fee, operators will also need to spend 5 billion Thai Baht ($141.9 million) to obtain a license.
Although the Thai government seems to be taking a steady approach, the biggest question is how capable Thailand actually is of easily entering the regulated gambling market? The answer is quite promising.
Thailand is surrounded by many mature markets—including Singapore, the Philippines, and Macau—from which it can learn not only their successful experiences but also their mistakes.
If the Thai government starts regulating online gaming, there is no doubt that it will avoid offshore gambling operators, as the Philippine government suffered a severe setback this year with POGO (Philippine Offshore Gaming Operators).
Interestingly, comparing Thailand's potential market with the previously mentioned markets of Macau, Singapore, and the Philippines has sparked an interesting discussion.
Compared to the aforementioned three regions, Thailand has a highly developed culture and infrastructure, and its tourism industry is diverse and thriving. There is ample evidence that Macau, a major gambling hub in Asia, is struggling to achieve what Thailand already has: diversity.
It is expected that the number of inbound tourists to Thailand will reach 36.1 million by 2024. Additionally, Thailand is located in the southeastern center of the Asian continent, making it a reasonably accessible travel destination for visitors from Australia and Europe.
So far, just British tourists alone will account for 554,000 foreign visitors arriving in Thailand in 2024, further highlighting this fact. This influx is achieved without the additional attraction of regulated casino resorts, which will undoubtedly attract a large number of local residents and inbound tourists from around the world.
Indeed, a study cited by The Economist suggests that regulated casinos in Thailand could increase tourist spending by 52%.
While only the government can answer when things will happen, the location is worth speculating. One of Thailand's many treasures is certainly Bangkok—the second-largest city in Southeast Asia by population.
Therefore, is it the ideal location to incorporate several integrated casino resorts? The country's largest island, Phuket, is another viable and attractive development option. Phuket is arguably a top choice for travelers, with nightlife that can rival Bangkok's and pristine beaches.
Finally, there is Pattaya, a five-hour drive from the Cambodian border. This coastal city has long been known for tourism, with Russian and Chinese tourists flocking in all year round—it could be well-suited to attract those Cambodian nationals who want to experience a luxurious border casino resort.
Clearly, many factors are at play—the road to regulation still has many questions to be answered. However, if Thailand's cautious attitude ultimately leads to a stable regulated market, Asia may see a new, very serious player emerge.
