Thailand’s casino draft bill to be submitted by year-end, official says

Jenny Ortiz October 25, 2024

SiGMA news

Thailand’s casino draft bill to be submitted by year-end, official says

Thailand is moving forward with plans to legalise casinos, with the draft bill on entertainment complexes expected to be submitted to the Cabinet by the end of the year. The legislation, aimed at boosting tourism and driving economic growth, marks a step forward in establishing legal casinos in the country.

According to local reports, Deputy Finance Minister Julapun Amornvivat said that once the draft law receives Cabinet approval, it will be forwarded to Parliament for deliberation during the regular session from mid-December 2024 to April 2025. If passed, it will become Thailand’s first law legalising casinos, sparking excitement within the tourism and investment sectors.

The proposed law, which recently garnered 82 percent public support during a hearing, could significantly boost Thailand’s tourism industry. A study by the Fiscal Policy Office estimates that entertainment complexes could attract 5-20 percent more foreign tourists. This influx is expected to raise the average spending per visitor from 40,000 baht to 60,000 baht (€1,093 to €1,640), creating a positive ripple effect on the economy.

Economic growth and job creation are expected

The construction and operation of these entertainment complexes are poised to generate substantial economic benefits. The construction phase will require significant investments, while once operational, the complexes will draw tourists, increasing demand for local services. This expansion is projected to create numerous employment opportunities for Thai citizens, with training programmes in place to ensure they have the skills needed to work in the industry.

The private sector is showing strong interest in the project, with potential investors eyeing the lucrative opportunities presented by the entertainment complexes. However, companies must meet certain requirements, including a minimum registered capital of 10 billion baht (€273.4 million), to participate. The government will assess proposals to ensure they align with Thailand’s vision for tourism-enhancing projects.

Thai citizens to have access to casinos with restrictions

The draft law also permits Thai citizens to enter the casinos, though an entry fee capped at 5,000 baht (€137) per visit will be required. The entertainment complexes will operate under a 30-year concession period, with licences renewable in 10-year increments. Operators must pay a 5 billion baht (€136.7 million) licensing fee and an annual fee of 1 billion baht (€27.3 million).

Growing foreign investment interest

International operators, including Malaysia’s Genting Group, are reportedly exploring opportunities in Thailand’s casino sector. The project, which includes integrated resort (IR) facilities, has garnered support from financial institutions like JP Morgan, which sees great potential in developments, particularly in Bangkok. The law proposes allowing 10 percent of the complex’s floor space for gaming activities, doubling the previously suggested 5 percent.

Thailand’s first legal casino could open by 2029

The regulatory process is advancing quickly, with bidding for casino operations expected to conclude soon. If the timeline stays on track, Thailand’s first legal casino could open by 2029. This development marks a pivotal moment in the country’s entertainment and tourism sectors, potentially positioning Thailand as a premier destination for international travellers and investors.