Thai Cabinet Approve Draft Law to Legalize Casinos
The Thai government has approved a draft law to legalize gambling and casinos, a major shift in policy for the Southeast Asian nation.
Thai flag. Thailand moves forward with casino legalization plans.
LISTEN TO THIS ARTICLE:Known as the Integrated Entertainment Business Act or Entertainment Complex Bill, the proposed legislation would permit land-based casinos as part of large-scale integrated resorts.
Prime Minister Paetongtarn Shinawatra announced the decision on December 13, confirming the cabinet’s support. The draft will now head to parliament for further debate, with the law potentially passing by mid-2025. Approval would require agreement from both the Senate and the House of Representatives.
Providing a Safe Gambling Environment
Thailand currently enforces strict restrictions on gambling, with legal options limited to state-run horse racing and the national lottery. However, illegal gambling remains a significant issue.
The proposed law aims to address these challenges by providing safer, regulated environments for gambling while boosting tourism and investment.
The purpose of the bill is to increase the efficiency of tourism and promote investment in the country, as well as solve the problem of illegal gambling that currently exists. It will also have a positive effect on society in the future as a whole.
Prime Minister Shinawatra spoke about the broader benefits of the bill, saying that it will “protect the public and would also generate more state revenue."
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Contents of Draft Casino and Gambling Bill
The draft legislation includes several key points:
- Casinos must be part of integrated resorts offering non-gaming attractions such as hotels, stadiums, concert halls, theme parks, restaurants, clubs, and retail areas. Gaming areas are limited to a maximum of 5% of the total resort space.
- Licenses would be issued for 30 years, with operators undergoing reviews every five years. Renewal periods would span up to 10 years.
- Applicants must be registered in Thailand with a minimum paid-up capital of THB10 billion (approximately $288 million). License fees include an initial payment of THB4.9 billion and an annual fee of THB1 billion.
The government plans to grant five licenses initially, with proposed locations including Bangkok, Pattaya, Chiang Mai, and Phuket.
The draft also outlines a 17% tax on gross gaming revenue, with regulation overseen by the Office of the Full-Service Entertainment Regulatory Commission.
Benefiting the Tourism Industry
Legalizing casinos is expected to significantly benefit Thailand’s tourism sector, which has lagged behind regional competitors such as Singapore, Cambodia, and the Philippines due to their established casino complexes.
Deputy Finance Minister Julapun Amornvivat has said that the move could boost foreign visitor numbers by 5% to 10% and generate up to THB220 billion in tourism revenue. Additionally, it is expected to create between 9,000 and 15,000 jobs.
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