Thailand’s Gambling Landscape: A Major Shift on the Horizon
Thailand is on the brink of a significant transformation in its gambling landscape as the government pushes forward with a bill aimed at legalizing casinos within large-scale entertainment complexes. Prommin Lertsuridej, Secretary-General to Prime Minister Paetongtarn Shinawatra, has indicated that this legislation could make its way through parliament by mid-2025. The Cabinet is expected to approve the bill before the end of 2024, after which it will be reviewed by the House of Representatives and the Senate.
If the bill is passed, it would pave the way for the development of integrated resorts (IRs) modeled after successful examples in Singapore. These complexes will not only feature casinos but will also include a variety of nongaming attractions such as hotels, concert venues, theme parks, and retail spaces, all designed to create comprehensive tourist destinations.
Prommin has outlined a potential timeline for this legislative process, stating, “The law should be passed in six months at the earliest, so it should be next year to start.” The government is targeting 2029 for the opening of the first resort, aiming to outpace Japan’s inaugural IR launch in Osaka.
A Lucrative Market with Global Appeal
Analysts from Citigroup have projected that Thailand’s gaming market could generate an impressive annual gross revenue of $9.1 billion once fully established. This would position Thailand as the world’s third-largest gaming market, trailing only Macau and Las Vegas. To put this into perspective, this revenue projection would surpass that of Singapore, where the Marina Bay Sands and Resorts World Sentosa collectively earned $3.8 billion last year.
The Thai government plans to issue five casino licenses initially, with potential locations in major tourist hubs such as Bangkok, Pattaya, Chiang Mai, and Phuket. To qualify for a license, applicants must be Thai-registered companies with a minimum paid-up capital of $286 million. Each license will come with an upfront cost of $148 million and an annual renewal fee of $30 million. Licenses will be valid for 30 years, with the possibility of renewals in 10-year increments.
A proposed tax rate of 17% on casino revenues is expected to attract significant interest from global gaming giants. Companies like Galaxy Entertainment Group, MGM Resorts International, and Las Vegas Sands Corp. are reportedly exploring opportunities in the Thai market. Prommin noted, “Many people have tried to talk with us,” highlighting the substantial investor interest in this emerging market.
Benefits and Regulations
The government envisions that this bill will not only boost tourism and revenue but also help curb the rampant illegal gambling that persists despite strict prohibitions. A 2021 study revealed that nearly 60% of Thais engage in gambling, with many crossing borders to countries like Laos, Cambodia, or Myanmar to access legal casinos. The legislation aims to channel this activity into a regulated framework, thereby reducing illegal operations while generating tax income for the government.
To address potential social issues associated with gambling, the bill proposes an entry fee of $144 for Thai nationals, while foreigners would enjoy free access. Each integrated resort is expected to create at least 10,000 jobs, providing a significant economic boost to a country still recovering from the impacts of the pandemic.
Labour Minister Phiphat Ratchakitprakarn emphasized the broader economic implications, stating, “Legalizing casinos in Thailand will help boost income for the country through spending and taxes. It will also help ease the problem of illegal gambling, especially online gambling, which has been growing rapidly.”
A Transformative Step Forward
Thailand’s move toward legalized gambling represents a transformative opportunity for the country’s economy and tourism sector. With the introduction of integrated resorts, Thailand could position itself as a key player in the global gaming market, attracting high-spending visitors and reshaping its entertainment offerings. As the bill advances through parliament, the nation is preparing to enter a new era of regulated gaming, with ambitious goals set for a $9 billion industry by 2029.
Sources
“Thailand’s Casino Bill Poised for Approval in 2025,” Asia Gaming Brief, November 18, 2024.