Thailand has taken a significant step toward legalizing casinos, with Prime Minister Paetongtarn Shinawatra confirming the Cabinet’s approval of the draft “Entertainment Complex Business Act” during a meeting on Monday.
The draft law will now proceed to the House of Representatives for further consideration, though no specific timeline for its enactment has been set. According to previous projections, Thailand could launch its first casino as early as 2029.
Proposed by the Ministry of Finance, the legislation aims to regulate the country’s underground gambling sector by establishing legal entertainment complexes and casinos to generate tax revenue.
According to reports, the approval follows extensive public consultations and adjustments based on feedback from citizens and relevant agencies. The government expects the initiative to significantly boost Thailand’s economy and tourism industry.
Prime Minister Paetongtarn highlighted that the initiative draws inspiration from Singapore’s successful model. The proposed entertainment complexes are designed to incorporate a range of attractions, with casinos comprising only a small portion of the offerings.
She noted that Singapore’s approach has spurred tourism growth and contributed significantly to its GDP, and Thailand aims to replicate this success.
To manage local participation, Thai citizens would be required to pay an entrance fee of THB5,000 ($144) to access casino facilities. This compares to Singapore’s SGD150 ($110) daily entry for locals.
Officials aim to assuage concerns about potential growth in illegal or unregulated gambling markets with a focus on transparency and robust oversight. Paetongtarn emphasized that a well-regulated framework will not only curb unlawful activities but also generate substantial tax revenue, strengthening the nation’s financial position.
Council of State highlights six concerns over IR draft law
The Council of State has identified six key issues with the draft casino law:
- Narrow Focus: The draft centers exclusively on casino entertainment venues, diverging from the government’s broader vision of promoting diverse tourism destinations. These could include water parks, amusement parks, shopping malls, concerts, festivals, and world-class sporting events.
- Lack of Clarity: If the law targets “entertainment complexes,” it must explicitly define the term. For example, does it encompass hotels, service establishments, and restaurants? Since such activities are already regulated under existing laws, introducing new legislation may be redundant.
- Misalignment with Existing Definitions: A House of Representatives study suggests that entertainment complexes could address illegal gambling. However, public understanding of these complexes includes a variety of recreational activities beyond gambling. The report argues that enforcement of existing laws, rather than new legislation, is the real issue.
- Missed Opportunity for Reform: If the goal is to combat illegal gambling or legalize it within entertainment establishments, the government could amend the existing Gambling Act (1935) instead of drafting an entirely new law focused on regulating entertainment complexes.
- Unclear Objectives: The draft law’s purpose—whether to develop tourist destinations or address illegal gambling—needs clarification from the Finance Ministry. These objectives require distinct legal strategies. Additionally, the Cabinet should consider public feedback and input from relevant agencies, particularly the Interior Ministry, before proceeding.
- Public Engagement: Clear and accurate information about the bill’s objectives should be communicated to the public. This would help address criticism and confusion before the draft is submitted to the Cabinet.
Despite these concerns, Finance Minister and Deputy Prime Minister Pichai Chunhawajira has dismissed the objections raised by the Council of State. He stressed the importance of maintaining Thailand’s competitiveness in global tourism, asserting that the draft law is primarily focused on attracting foreign gamblers, with gambling revenue as a secondary priority.
Pichai also highlighted that no government agency, aside from the Council of State, has opposed the bill. The Finance Ministry is now working to address jurisdictional concerns and is devising measures to restrict access to casinos for Thais under 20 years old.
Reports indicate that the Council of State could be planning to oppose the new Entertainment Complex bill.
