Thailand’s entertainment complex bill could bring a total output of up to THB182.19 billion ($5.5 billion), according to a report by the Parliamentary Budget Office (PBO) cited by local media outlet The Nation.
The Thai government has scheduled the entertainment complex bill for its first reading in Parliament during the ordinary session in July, as Prime Minister Paetongtarn Shinawatra instructs Cabinet ministers to ensure public understanding of the proposal.
According to the PBO, the entertainment complex is set to drive broad economic activity, with multiple industries expected to benefit. The findings are based on input-output analysis and reflect the scale of the government’s investment, which starts at THB100 billion ($2.93 billion).
The construction sector will experience the highest impact, with output expected to reach THB100.09 billion ($2.93 billion). Non-metallic products follow with THB19.61 billion ($575 million), while services and trade sectors are projected to generate THB12.57 billion ($368 million) and THB9.44 billion ($277 million) respectively.
Total value added is projected to increase by THB68.11 billion ($2 billion), distributed across wages and salaries at THB21.38 billion ($627 million), operating profits at THB27.07 billion ($793 million), depreciation at THB15.14 billion ($444 million), and net indirect taxes at THB4.50 billion ($132 million).
As explained previously by the government, the entertainment complex bill aims to promote tourism through man-made destinations, attract tourists, stimulate investment, and generate revenue while enhancing employment opportunities. It seeks to bring legalized casino and gambling businesses under a regulated system, ensuring proper revenue and tax collection.
Long-term economic benefits
The report mentions that the entertainment complex projects are expected to continuously attract large-scale investments from experienced global tourism developers and develop new forms of tourism to draw high-quality visitors. The project aims to create permanent employment opportunities in the service sector and supporting industries while ensuring sustainable tax revenue by integrating casino and gambling businesses into the formal economy.
Additionally, the initiative seeks to elevate Thailand’s status as a regional tourism hub and establish a new business ecosystem connecting local entrepreneurs with high-quality tourists.
Social and economic concerns
Despite potential economic benefits, the entertainment complex project may lead to significant negative impacts across multiple dimensions. Social issues include gambling addiction, particularly among economically vulnerable groups, potentially resulting in household debt, domestic violence, and associated crimes such as illegal lending and money laundering.
Economic disparities may emerge as the project concentrates in economically developed areas, potentially leading to uneven distribution of investment and public services. Rising land prices and living costs in such areas could exacerbate inequality.
The report also mentioned that regulatory risks present additional concerns, as ineffective governance and oversight could lead to corruption, money laundering, and human trafficking, posing threats to the country’s financial system. The formalization of casinos may also affect Thai cultural values, influencing youth perceptions on wealth acquisition through gambling rather than traditional means.
Studies indicate a correlation between casinos and increased alcohol consumption, with reports showing that 20 percent of young gamblers regularly consume alcohol. This may result in direct and indirect economic and social costs, including health issues, accidents, and violence.
Government recommendations
The Parliamentary Budget Office recommends the government prioritize balancing economic benefits and social impacts. While 62.05 percent of countries worldwide (121 countries) have casinos (according to data cited by the PBO), not all have successfully managed their social consequences. Thailand should study both successful models, such as Singapore, and failures of countries struggling to mitigate social impacts effectively.
Experts note that strategic planning for entertainment complex development should ensure a balanced mix of revenue between casino operations and other entertainment activities. Over-reliance on gambling businesses should be avoided, with strict regulatory measures in place to prevent potential social risks.
The office also highlights concerns about equitable distribution of benefits, noting that wage and salary proportions account for only 31.3 percent of total value added, whereas operating profits make up 39.8 percent. This suggests investors may benefit significantly more than workers, potentially conflicting with Thailand’s goal of income distribution and reducing inequality.
