(Jan 13): Thailand’s Cabinet approved in principle a bill seeking to legalise casinos, with the government pitching the initiative as a major step to boost tourism and tackle rampant illegal gambling in the Southeast Asian nation.

The draft legislation will be scrutinised by the Council of State before it can be sent to the lower house of Parliament for discussions and approval, Prime Minister Paetongtarn Shinawatra said after a weekly Cabinet meeting on Monday. 

The so-called entertainment complex bill proposes casinos to be housed within large venues, which will also feature hotels, convention centres and amusement parks. Thailand can emerge as a major player in the global gaming industry if casinos become fully operational in about six years from now, Citigroup Inc said last year.

Galaxy Entertainment Group Ltd and MGM Resorts International are said to be studying potential opportunities in Thailand as a hedge against uncertain prospects in Macau. Las Vegas Sands Corp has said it would be interested in expanding to Thailand.

Paetongtarn said the government is keen to ensure the entertainment complexes become a reality sooner, as it can not only boost the country’s tourism but also the overall economy. By legalising gambling, the government also expects to tackle illegal betting, she said. 

While most types of betting have been banned in Thailand since at least 1936, almost 60% of Thais gamble, a 2021 study by Thailand’s Gambling Study Center found. Some Thais also travel to bet in casinos operated in neighbouring Myanmar, Laos and Cambodia.

“This initiative aims to promote tourism, facilitate investments, and address illegal gambling problem,” Paetongtarn said. The entertainment venues can boost gross domestic product and lift tourism revenue, she said, citing the example of Singapore. 

The draft bill proposes to allow Thai-registered companies with a paid-up capital of at least 10 billion baht (US$287 million or RM1.3 billion) to operate integrated resorts. A licence for 30 years will cost five billion baht in the first year and one billion baht each for all the remaining years. The permit can be extended for up to 10 years upon each renewal.

Each entertainment complex may require about 100 billion baht in investment and could generate as many as 15,000 jobs, Deputy Finance Minister Julapun Amornvivat said. While the overall revenue boost to tourism is seen between 120 billion baht to 40 billion baht, the government may net revenue of 12 billion baht to 40 billion baht annually, he said.

Integrated resorts in “Thailand are likely to target Chinese and Malaysian travellers, as they make up the country’s biggest tourist arrivals”, Bloomberg Intelligence analysts Angela HanLee and Rebecca Wang wrote in a report last month.

Thailand expects foreign tourist arrivals to jump to a record 40 million this year, up from 35.5 million last year. The sector accounts for about 12% of the country’s gross domestic product and nearly a fifth of jobs.

Once the Council of State vets the draft bill, the Cabinet will again review the legislation as it concerns several government agencies, Interior Minister Anutin Charnvirakul said.

A panel chaired by the prime minister will later propose finer rules, including the income tax rates for casinos, the number of licences, and the locations. At least four other types of businesses must be housed inside the complexes alongside casinos, which may include department stores, hotels, amusement parks, restaurants or nightlife venues, according to the bill. 

The government may initially grant five casino permits in popular tourist destinations, with two in Bangkok and one each in Pattaya, Chiang Mai and Phuket, according to local media reports. The lower house of Parliament last year backed a study that favoured setting up casinos within large entertainment venues to attract high-spending visitors. 

Uploaded by Tham Yek Lee