The Thai government aims to rejuvenate the nation’s tourism and entertainment sector, which has long been a cornerstone of the economy, with the introduction of a detailed integrated resort draft law.
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Integrated Entertainment Business Act is currently under public consultation until August 19th and seeks to modernize outdated laws and create a comprehensive framework to support and regulate the industry’s growth.
‘Thailand’s vibrant tourism industry, featuring diverse attractions and entertainment venues, is pivotal for economic prosperity, generating substantial employment and revenue. However, stringent regulations have historically governed these businesses to maintain public order and morals’, states the draft law published by the country’s Council of State.
The proposal includes the revision of the Entertainment Venue Act B.E. 2509 from 1966, which classifies entertainment venues as establishments offering commercial services, including dance halls, food and drink venues with service partners, bathhouses, massage parlors, and live music or entertainment spots.
Other laws to be revised include the Gambling Act of 1935 – which specifies permissible gambling types and venues, and the Royal Decree on Gambling Conditions of 1939 – which allows gambling in government-established casinos.
‘These laws are outdated and do not support modern integrated entertainment venues. New legislation is essential to promote and regulate such venues, ensuring comprehensive supervision and clear operational guidelines’, the draft law adds.
According to Thai authorities, the pandemic dealt a severe blow to tourism and service sectors, drastically reducing income.
‘As the situation eases, there’s an urgent need to explore measures to revive the industry, particularly the entertainment economy which spans tourism, sports, entertainment, and MICE (Meetings, Incentives, Conferences, and Exhibitions)’, the document reads.
‘The government proposes establishing integrated entertainment venues that combine multiple businesses such as hotels, convention centers, malls, hospitals, banks, amusement parks, sports stadiums, and casinos. Legalizing and regulating casinos would enable the government to supervise these venues and collect taxes, thus boosting national income’.
The liberalization of the gaming industry is expected to boost Thailand’s tourism revenue by $12 billion, according to studies, with the new draft allowing for 30-year licenses with 10-year extensions.
Potential locations to host the Entertainment Complexes include Greater Bangkok, Phuket, Chiang Mai, and Chonburi (Pataya), to be established within 100 kilometers of major airports, and with a paid-up capital of at least $283 million. Thailand will be competing with the emerging market of the UAE and, to some extent, Japan.
Galaxy Entertainment Group, MGM Resorts and Las Vegas Sands are among the operators who have already declared interest in the market.
Comprehensive legislation
The new legislation aims to ensure well-regulated operations, employee management, and impact mitigation. It seeks to attract more tourists and generate income for locals and operators, while also increasing tax collection from regulated entertainment businesses.
The Integrated Entertainment Policy Committee, chaired by the Prime Minister, will set policies, manage impacts, issue licenses, and regulate integrated entertainment venues. The Executive Board will be responsible for criteria, strategic plans, budget approval, fee setting, and staff regulations.
The Office of the Full-Service Entertainment Regulatory Commission, a juristic entity in Bangkok, will be tasked with administration, policy implementation, supervision, inspection, and fee collection. The Secretary-General, appointed for a four-year term, will manage the Office, set regulations and oversee staff.
Official personnel will be appointed to inspect, investigate, and enforce regulations at entertainment venues. Only companies with at least THB10 billion ($283.9 million) in capital can obtain a 30-year license for integrated entertainment venues, which must combine multiple business types, including casinos.
Operation control will be regulated by specific laws and conditions, with enforceable gambling debts and strict guidelines for casinos, including age restrictions and employee ratios. Non-compliance will result in fines and potential license revocation.
Initially, a civil servant will temporarily perform the duties of the Policy Committee and Executive Committee until the Office receives budget allocations.
