Plans for Thailand Casinos Could Advance Before Year's End
Thailand is moving closer to the potential legalization of casino resorts, with a draft law expected to reach the country's cabinet by the end of the year. According to the Bangkok Post, Julapun Amornvivat, Thailand's deputy finance minister, confirmed that approval of draft law receives cabinet approval will immediately allow it to proceed to the national assembly for further review.
An aerial view of Bangkok, Thailand, at night. (Source: Marriott.com)
LISTEN TO THIS ARTICLE:The country's legislative process will likely move forward as the House of Representatives, the lower chamber of Thailand's parliament, is scheduled to reconvene in mid-December and continue through April of next year. This timeframe could be pivotal in determining the future of the proposed casino resorts.
Related: Thailand's Casino Initiative Advances at a Rapid PaceMedia outlets have recently reported that public recommendations for changes to the draft bill had already been submitted to the government by the Fiscal Policy Office (FPO). These recommendations followed a consultation process aimed at gathering public input on the issue.
The push for casino resorts, referred to in Thailand as "entertainment complexes," has generated significant interest. According to a study conducted by the FPO, these developments could attract an additional 5 to 20% more international tourists annually. This would be a significant boost to Thailand's already robust tourism sector. The country has been a popular destination for international visitors, with the Ministry of Tourism and Sports reporting nearly 23.57 million tourists arriving between January and August this year.
The study also suggested that these resorts would lead to an increase in average tourist spending. Currently, tourists spend an average of THB40,000 (US$1,776) per person, but with the introduction of casino resorts, this figure could rise to THB60,000 (US$1,776). Such an increase would have a meaningful impact on the country's economy, as tourism is one of Thailand's most vital industries, providing substantial revenue.
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The potential benefits of legalizing casino resorts extend beyond tourism and economic spending. Amornvivat highlighted the importance of job creation, noting that the introduction of these entertainment complexes could open up numerous employment opportunities for Thai citizens. However, he acknowledged that training programs might be necessary to equip local workers with the skills needed for jobs in this sector, particularly in casino operations and hospitality services.
The proposed draft law outlines several key requirements for companies wishing to operate these casino resorts. Only firms based in Thailand would be eligible to run the establishments, and they must show they have working capital of at least THB10 billion (US$296.9 million) to qualify.
Additionally, the draft bill suggests that Thai residents would be subject to an entry fee not exceeding THB5,000 (US$148.45) per visit. Casino licenses, once granted, would be for 30 years, with an option for renewal every 10 years. The cost of acquiring a license would be significant, with an initial fee of THB5 billion and an annual fee of THB1 billion (US$19.7 million).
The financial prospects of a legalized casino industry in Thailand have also drawn attention from international financial institutions. Morgan Stanley recently released a report suggesting that such an industry could generate up to $6 billion in GGR annually. This revenue potential positions the casino proposal as a lucrative opportunity for both domestic and international investors and could provide the Thai government with a new source of income.
The next steps for the casino resort law will depend on its progression through the cabinet and, eventually, the national assembly. The outcome will determine whether Thailand joins other Asian countries that have embraced casino resorts as a way to boost tourism and strengthen their economies. While the timeline for the legislation appears to be on track, much remains to be debated and decided in the coming months.
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