The draft law on entertainment complexes in Thailand is expected to be submitted to the cabinet for consideration this year, according to Deputy Finance Minister Julapun Amornvivat.
The draft, which aims to legalize casinos in the country, recently underwent a public hearing, as required by the constitution, with 82 percent support. This figure was publicly announced for the first time, as previous reports only indicated that a majority of participants supported the draft bill.
According to the Bangkok Post, Julapun stated that – following cabinet approval – the administration will forward the draft law for parliamentary deliberation.
The House of Representatives is set to reconvene from mid-December until April next year.
A study by the Fiscal Policy Office (FPO), a policy unit of the Ministry of Finance, suggests that establishing entertainment complexes in Thailand could attract an additional 5 to 20 percent of foreign tourists, increasing spending per visitor from the current THB40,000 ($1,183).
The entertainment complexes featuring casinos are anticipated to boost the Thai economy, both during the construction phase, which requires significant investment and after their completion.
They aim to attract tourists and create jobs for local residents. “I hope as many Thais as possible will be employed in the entertainment complexes, which may require training to ensure they have the necessary skills,” he noted.
Adjustments after public hearing
As previously reported, the public hearing conducted between August 2rd and 18th, 2024, is wrapping up, with the FPO compiling a report that includes 45 significant recommendations.
Among these recommendations, a key proposal is to rename the legislation from “Entertainment Complex with Casino” to the “Integrated Resort Act.” This change seeks to more accurately represent the diverse offerings of the proposed developments.
Participants also suggested increasing the number of allowable entertainment activities within each complex from four to seven. This expansion would incorporate dedicated areas for showcasing Thai culture, thereby enhancing the resorts’ overall appeal.
Additionally, there was a recommendation to modify the shareholder composition within these complexes, with participants advocating for Thai ownership to be between 30 percent and 51 percent.
The hearings also discussed the duration of licenses for the entertainment complexes. Some participants proposed reducing the license validity from 30 years to 10, while others suggested extending it to between 50 and 60 years. There was also a proposal to limit the number of entertainment complexes in the country to between three and seven.
In terms of location, participants recommended that these complexes be strategically placed in popular tourist destinations such as Phuket, Chiang Mai, Chonburi, Rayong, or Hua Hin, rather than in Bangkok.
For private investors, the draft law stipulates a minimum registered capital of THB10 billion (roughly $300 million). The government will evaluate proposals based on what companies can offer and the types of projects desired.
The draft legislation also specifies that the entry fee for Thais wishing to enter a casino must not exceed THB5,000 ($148) per visit. Licenses for the complexes will be valid for 30 years, renewable in 10-year increments, with a license fee set at THB5 billion ($148 million) and an annual fee of THB1 billion ($30 million).
