Recently, the Thai House of Representatives passed a "casino legalization" plan by a large majority, allowing casinos to be set up in large entertainment centers, which is seen as the first step towards local legalization. Recently, the Thai government announced the much-anticipated draft of the entertainment complex bill, listing 65 regulations for casino operations, aiming to control the potential negative impacts while opening up the gambling market.
Initial Bill Released: 65 Casino Operation Regulations
According to the draft, casino operators can obtain an initial license for 30 years, with an assessment every 5 years, and a possible extension of 10 years.
Casinos will be planned within large integrated entertainment centers and operated in conjunction with hotels, convention centers, and other facilities. The initial license application fee is 5 billion Thai Baht, with an annual fee of 1 billion Thai Baht.
The bill also specifies the scope of casino operations and the gambling equipment used.
In terms of age restrictions, the draft stipulates that individuals under 20 are prohibited from entering casinos. For Thai citizens, they must register in advance and pay an entrance fee of 5,000 Thai Baht to enter the casino, a measure aimed at reducing the risk of local residents becoming overly addicted to gambling.
Major Gaming Groups Flocking In
Galaxy Entertainment Group Ltd and MGM Resorts International have begun assessing the possibility of establishing casino resorts in Thailand, aiming to diversify their risks in Macau. Las Vegas Sands Corp also expressed their interest in entering the Thai market.
Studies Show Casino Legalization to Boost Economy by 400 Billion
A special committee of the Thai Parliament conducted a professional assessment on "casino legalization," finding that once casinos are established in large entertainment centers, each visitor's spending is expected to increase by 52%, reaching 65,000 Thai Baht (about 12,000 Hong Kong dollars). This is expected to drive local tourism revenue growth by 448 billion Thai Baht (about 96.733 billion Hong Kong dollars) and is expected to boost GDP growth by 1.16%.
Currently, Thailand is the second-largest economy in the ASEAN region, and the government hopes to compete with countries like Japan and Singapore for the gaming tourism market by perfecting regulations, combating illegal casinos, and accelerating economic growth.
Singapore Experience: Casino Legalization Drives Tourism Development
Referring to Singapore's experience, before 2009, foreign tourists spent about 285 Hong Kong dollars on entertainment in Singapore. However, after the legalization of casinos, from 2010 to 2013, the average entertainment expenditure of foreign tourists significantly increased to 4,300 Hong Kong dollars.
If Thailand successfully passes the casino legalization, it is also expected to bring significant economic growth to the tourism industry. Deputy Finance Minister Julalpong stated that the casino legalization bill is expected to pass during the current government's term and believes that Singapore's successful experience is worth learning from.
Casino Legalization Helps Combat Illegal Gambling and Promotes Economic Circulation
Legalizing casinos will provide job opportunities for people with low income and education. At the same time, by regularizing management and preventing tax evasion, it will bring direct income to the government, which will be used for public services and infrastructure construction, benefiting the livelihood of the people.
Prime Minister Seta stated: "The entertainment complex will enhance the national tourism industry. In the past, we missed many opportunities, the government will make up for lost time and transform it into economic opportunities for the nation and its citizens."
Strict Regulation to Prevent Casino Proliferation
The passed bill only allows casinos to be established in large entertainment centers, not widespread. The so-called "large entertainment centers" are required to be comprehensive projects similar to Macau's Wynn Palace and The Venetian Resort, integrating dining, hotels, shopping, and entertainment, and will be strictly regulated by the government.
The investment threshold is high, and only large consortia with corporate social responsibility are eligible to compete for casino licenses. According to American media, Galaxy Entertainment and MGM Resorts International are studying the feasibility of opening casino resorts in Thailand.
