Thai-based market analysts told AGB that, if approved, the new integrated resort industry could be a boost to both tourism and foreign investment in the Southeast Asian country.
The proposed Integrated Entertainment Business Act is currently under public consultation until August 19th and seeks to modernize outdated laws and create a comprehensive framework to support and regulate the industry’s growth.
The IR Act aims to align Thailand’s entertainment and tourism industry with international standards, fostering economic growth and enhancing government revenue.
Kent Jenkins, a Bangkok-based market analyst and CEO of Sportzplanet, told AGB the gambling legislation is key for Thailand to strategically position itself for the future and capitalize on its global popularity as a tourist destination.
“In doing so, it needs to consider its options, and there’s probably none bigger than the lucrative casino industry to boost the tourism sector’s revenues, some say by up to $12 billion. The proposal to construct multiple entertainment (casino) complexes is massive and will boost both tourism and attract foreign investment”, Jenkins indicated.
The analyst also highlighted the proposed 17 percent casino tax rate as a competitive edge, saying it aligns well with neighboring Singapore’s tax bracket for mass gross gaming revenue (GGR), making the country an attractive prospect for investors, especially compared to the Philippines’ 25 percent and Japan’s 30 percent tax rates.
“Overall, the convergence of favorable tax policies, government initiatives, and the booming tourism industry does paint a promising picture for the future of the Thai casino sector”, Jenkins added.
Reflecting on Thailand’s progressive stance, Jenkins believes it to be “only a matter of time before Thailand moves ahead”.
“It’s important to remember that, in 2022, Thailand became the first country in Asia to decriminalize cannabis and is on course to become the first in Southeast Asia to legalize same-sex marriages. There is no doubt that Thailand casinos would attract tourists and investment“, he told AGB.
Meanwhile, Bangkok-based commercial sponsorship and marketing expert Paul Poole expressed support for the changes, describing the proposed amendments to Thailand’s gambling laws as “crucial for regulating the industry more effectively”
The founder of Paul Poole (South East Asia) Co., Ltd. emphasized that updating the legislation would help protect consumers and capitalize on the economic benefits, particularly in the tourism and MICE sectors.
“The proposed amendments to Thailand’s gambling laws will undoubtedly open up the category for sponsorship. This regulatory shift is poised to create substantial opportunities for rights holders and brands, facilitating new sponsorship and partnership avenues in both the sports and entertainment sectors”, Poole noted to AGB.
“The timeline for these changes will be crucial in allowing stakeholders to strategically plan and secure deals ahead of major events, ultimately driving significant economic benefits,” indicated the executive.
