Thailand’s casino ambitions

Sudhanshu Ranjan October 8, 2024

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Thailand’s casino ambitions

Thailand is on the cusp of a significant shift in its gambling landscape. With the country’s Deputy Finance Minister, Julapun Amornvivat, spearheading a proposal to legalise casino resorts, the country is making strides towards establishing entertainment complexes aimed at boosting tourism, attracting investment, and generating employment.

Thailand’s gambling landscape

As of now, gambling in Thailand is highly restricted. The only legal forms of gambling are the state-regulated national lottery and horse racing. These activities, though popular, contribute little compared to what a fully legalised casino industry could bring. The government is looking to expand its revenue streams, and casino resorts are seen as a major opportunity.

Deputy Finance Minister Julapun Amornvivat has made it clear that Thailand’s future in the casino business is bright. He envisions large-scale entertainment complexes that feature more than just casinos. However, with those opportunities come social concerns, particularly the potential for gambling addiction and the need for responsible gambling practices.

Government’s plan

MP Korrawee Prissanantakul has suggested that the government should run the casinos, ensuring that profits stay within the country. However, Julapun’s vision favours private investors who bring expertise and international connections, believing they will foster a more competitive and vibrant market.

According to Julapun, the private sector’s experience and resources make them better suited to handle the complexities of running a casino. His preference for global players shows a willingness to open Thailand to foreign investment, which will help establish Thailand as a serious contender in the Asian casino market.

Casino licensing process

The proposed licensing framework is stringent. Companies interested in operating a casino in Thailand must meet strict requirements, including being a limited or public company registered in the country. A substantial filing fee of $2,892, along with a licence fee of $149.15 million, ensures that only serious contenders apply. Annual fees are also steep, with a $29.83 million price tag for maintaining the licence.

Interested operators would need a paid-up capital of at least $298.3 million to qualify, ensuring that only financially stable companies enter the Thai market. This is in line with the government’s goal of attracting established and reputable players like MGM Resorts and Las Vegas Sands.

A recent report from the Ministry of Finance, based on public consultation, recommends locating up to five casino resorts in Bangkok and other tourist-heavy areas like Chiang Mai, Phuket, and the Eastern Economic Corridor. By distributing these resorts strategically, their beneficial economic impact would be spread across different regions.

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