The proposed casino project in Thailand has ignited debate, with the opposition People’s Party expressing concerns about the future of the integrated resort (IR) industry. Daniel Cheng, a gaming expert, has noted that while parliamentary discussions are encouraging diverse perspectives, they also reveal a broader lack of understanding of the IR industry among politicians and government ministries.
Speaking to AGB, Cheng suggested that the Paetongtarn government needs to make greater efforts to provide lawmakers, ministries, and the business community with adequate research and information about the industry.
Cheng’s comments followed a statement by Nont Pisarnlimjaroenkit, a member of the opposition People’s Party, who provided recent input on the draft Thai casino bill during parliamentary sessions.
According to the Bangkok Post, Nont stated that Prime Minister Paetongtarn Shinawatra’s administration aims to generate new revenue by bringing underground businesses into the tax system, including the development of an entertainment complex featuring a casino. This initiative is seen as a strategy to combat illegal gambling and increase national revenue.
However, the government has yet to clarify whether the entertainment complex will be a large-scale project comparable to Macau’s upscale casinos or a more modest venture like those in neighboring countries. Meanwhile, Nont also warned that legalizing casinos in the country could trigger shady business dealings.
Cheng cautioned that Nont’s feedback, alongside that of other MPs, highlights a broader lack of understanding of the IR sector among politicians and ministries. “Their shortcomings became evident when Nont raised valid points about the multi-ministry drafted bill,” Cheng said.
Cheng noted Nont pointed out that key details—such as the proportion of casino space within the entertainment complex, the tax rate, and the locals’ entry fee—were left unconfirmed in the draft bill, giving broad discretionary power to a policy committee led by the prime minister.
“This flexibility could significantly alter the framework of the entertainment complex and raises concerns about potential abuse,” Cheng added.
With the draft bill only requiring investments to cover up to four of the dozen listed components of the entertainment complex, there is concern that the government may opt for a more liberal interpretation. “This may allow local companies to pursue less ambitious developments similar to those in neighboring Indochinese countries,” he warned.
Cheng further cited a Bhumjaithai MP’s suggestion to create state-owned entertainment complexes and a proposal from an equestrian club to build a complex in Bangkok as indicative of this shift.
Focusing solely on visitor numbers
In the discussion, Thai politician Nont also highlighted that even countries like Singapore, Vietnam, and the Philippines have struggled to match the tourist appeal of Macau’s casinos. He expressed skepticism about Thailand’s ability to replicate Macau’s success and argued that the government had not fully considered the potential impacts of legalizing casinos.
Commenting on this, Cheng cautioned that focusing solely on visitor numbers, while comparing Thailand unfavorably to Singapore, Vietnam, and the Philippines, overlooks the broader context. “Nont’s belief that the Macau model is the industry benchmark reveals a significant misunderstanding of the sector. He seems unaware that the Chinese central government is actively steering Macau’s gaming industry towards a more successful model, like that of Singapore’s integrated resorts.”
All this feedback in Parliament, Cheng stated, underscores the need for the Paetongtarn government to provide lawmakers, ministries, and business leaders with more comprehensive industry research and information.
Amid these challenges, the Thai government had not yet engaged global industry consultants to assist in formulating its plans, resulting in widespread misconceptions among MPs and significant gaps in the draft bill.
In his view, Cheng concluded, “the Thais would be significantly underestimating their potential if they do anything less than auctioning off and awarding half a dozen licenses to top global gaming companies. Each of these companies should be tasked with developing a world-class entertainment complex to rival those in Las Vegas and Singapore.”
He also emphasized the importance of understanding the major players in the global IR industry. “For any Thai officials or politicians who may not be familiar with the industry’s leading companies, they include, in no particular order: Wynn Resorts, MGM, Galaxy Entertainment, Genting Group, Las Vegas Sands, Hard Rock International, Caesars Entertainment, and Melco Resorts,” he said.
*Daniel Cheng is the author of the handbook for integrated resort development, How I Built an Integrated Resort, published by AGB. A Thai-language translation of the book will be introduced in Bangkok in the fourth quarter of this year, aligning perfectly with the current market needs.
