casinodiary

Debate in Thailand: Should Gambling Winnings Be Exempt from Taxes?

The Thai cabinet is currently reviewing public input on the proposed entertainment complexes in the country. Some respondents have recommended shortening the license terms, while others advocate for reducing entry fees for local residents.
Debate in Thailand: Should Gambling Winnings Be Exempt from Taxes?
In August, the Ministry of Finance conducted a two-week online consultation to gather public opinion on a proposal to establish five or more integrated resorts (IRs) featuring casinos. Lawmakers are now assessing the public feedback on the proposed "entertainment complexes" in Thailand.
Public input covers various topics, from the suggested duration of casino licenses to the entry fees locals should pay to access the casinos.
In Thailand, most forms of gambling remain illegal, with the exception of the national lottery and horse race betting. However, both former Prime Minister Srettha Thavisin and his successor Paetongtarn Shinawatra support the idea that integrated resorts (IRs) with casinos could attract high-spending tourists and stimulate long-term economic growth.
With government backing, Thailand aims to accelerate development and potentially open its first IR before Japan's MGM Osaka, which is expected to launch by 2030.
A report from a Thai house committee estimates that IRs could generate 12 billion baht (£276m/€331m/$358m) in tax revenue during their first year.
Lawmakers have suggested five potential locations for these IRs, including at least two in Bangkok. Other proposed sites include Chiang Mai, a major northern city, the popular holiday destination of Phuket, and the Eastern Economic Corridor (EEC).

What the people say

Thailand’s Fiscal Policy Office (FPO) is currently evaluating public feedback, which includes 45 key points for consideration before being forwarded to the cabinet.
During the recent online hearing, some participants recommended reducing the license term from 30 to 10 years, while others suggested extending it to 60 years.
There were also proposals to cap the entry fee for Thai gamblers at 2,000 baht, with some advocating for tax-free gambling winnings. Additionally, some respondents proposed establishing a special fund to help those affected by problem gambling.
Under the current entertainment complex bill, each integrated resort (IR) must feature at least four non-gaming elements, such as hotels, entertainment venues, and theme parks. However, some members of the public are calling for seven attractions, including exhibits that highlight Thai culture.

Operator requirements

Global casino giants like Las Vegas Sands Corporation, Wynn Resorts, Caesars Entertainment, MGM Resorts, Galaxy Entertainment, and Hard Rock are reportedly considering expanding into Thailand.
To qualify, these operators would need to be incorporated in Thailand and have a minimum paid-up capital of 10 billion baht. Licenses would be granted for 30 years, with the option to renew for an additional 10 years.
License fees would depend on location and investment size, with categories ranging from small to extra-large. The extra-large category would require a minimum investment of 100 billion baht. The draft proposal sets a 17% tax rate on gross gaming revenue (GGR).
While the entertainment complexes would cater to foreign visitors, the bill includes a 5,000 baht entry fee for Thai citizens to help reduce problem gambling.

Rivaling Macau and Singapore?

When Thailand's integrated resorts (IRs) eventually open, they could become strong competitors to Macau and Singapore in the casino market.
“If Thailand does it right, this could boost its appeal as a tourist destination,” Ben Lee, managing partner of IGamiX Management and Consulting, told CNBC. “Thailand is a tourism juggernaut. It’s the one tourism market in the region everyone fears.”

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top