A Thai government official has proposed a new argument in favor of opening casinos in the country: the revenue generated by the casinos would "offset" the losses expected from U.S. tariffs.
As opposition to the Thai Entertainment Complex Act continues, Deputy Prime Minister Phumtham Wechayachai stated that the industry is crucial for compensating for trade losses with the U.S.
Last week, U.S. President Donald Trump announced new tariffs, shocking governments worldwide. These tariffs range from 10% to 50%, aimed at bringing manufacturing back to the U.S. and preventing international exploitation. Analysts say these tariffs could affect over 60 trading partners and might be the first shot in a global trade war, potentially leading to a global economic recession.
The Asian markets are particularly hard hit. A 36% tariff on Thai exports could mean a loss of $15 billion (11.7 billion GBP/13.7 billion EUR). According to the Thai Observer, this could mean "any hope for meaningful economic or GDP growth by 2025 might be shattered."
Entering the casino resorts, with an annual total gaming revenue (GGR) of $9 billion to $15 billion, could position Thailand as the world's third-largest market after Macau and Las Vegas.
Critics argue that casinos are sources of crime and addiction. But in Phumtham's words, "It's not about promoting gambling, but about economic survival."
Pros and Cons of Casino Resorts
Prime Minister Padongtan Sinawat's government supports the construction of gambling entertainment centers to boost tourism, attract international investment, and create jobs.
The proposal has been approved by the cabinet and will be submitted to parliament for consideration this week. If approved, the proposal will legalize casino resorts in Chiang Mai, Chonburi, Phuket, and Bangkok.
However, the proposal has sparked widespread opposition, including street protests.
According to the Bangkok Post, on April 6, 50 former drafters of the 2007 Thai Constitution wrote to parliament stating that the casino bill was not part of the ruling Pheu Thai Party's election agenda. They claim that former Prime Minister Thaksin Shinawatra (Paetongtann's father) is the mastermind behind the scenes, seeking his own interests.
The letter urged lawmakers to reject the casinos, as they could bring social costs such as crime and addiction.
In a January poll, 59% of respondents were against these complexes, with only 29% in favor. Moreover, over 58% strongly opposed legal online gambling, with less than 20% strongly in favor.
The Deputy Prime Minister noted that the Fiscal Policy Office conducted another survey during the public consultation period. Reportedly, the survey found that 80% of the 70,000 respondents supported the casino resorts. Former Election Commissioner Somchai Srisutthiyakor questioned the reliability of the FPO survey. The survey showed that 57,500 out of 71,303 respondents gave nearly identical answers, with 80.6% to 80.75% answering "yes" to all eight questions.
"Even from Mars, this result is hard to believe," Somchai said, "but the cabinet believes it."
Padongtan has a "strong plan" to reduce tariffs
Last week, Padongtan tried to reassure the public that her government has a "strong plan" to deal with the imminent tariffs. "We have prepared several steps, including sending our permanent secretary to talk with [the U.S.]... I think we can still negotiate," she said.
Fitch Ratings' U.S. economic research director, Olu Sonola, told MSN's MarketWatch that the tariffs "will change the game, not just for the U.S. economy, but for the global economy as well. Many countries might end up in recession. If these tariff rates persist for a long time, most forecasts will fail."
The U.S. is Thailand's largest market for electronics, machinery, and agricultural products. Data from the U.S. Trade Representative's office shows that Thailand had a trade surplus of $45 billion with the U.S. last year.
In a comment in the Washington Post, a reader scoffed at the idea that casinos could compensate for billions in trade losses.
"What nonsense!" an anonymous poster wrote. "Will ordinary Thai rice farmers, unable to sell their rice at a reasonable price, accept training and support to become casino dealers? The answer is no!!! This should be the response and vote on the casino entertainment complex bill: No!"
