Commissioned in March following the approval of a draft Entertainment Complex Bill by House members (passed 253-4), the Thai casino study aims to enhance tourism and investment. The report, due on Wednesday, will assess the economic, social, and cultural impacts of legal casinos in the kingdom and propose a legal and regulatory framework.
If casino resorts are legalized, Thailand will quickly move towards opening them. A March report from Maybank Investment Bank suggested that licenses would “be awarded in phases,” with the first resort complex expected to open “in 2029.”
Government estimates predict that the resorts could generate 12 billion baht (£260.4m/€309.1m/US$334.2m) in taxes during the first year. Additionally, a new analysis from CSLA indicates that a mature industry could bring in up to $15.1 billion annually.
Key Provisions of the Draft Bill
Entertainment complexes. The resorts are defined as multifaceted destinations with hotels, food and beverage operations, entertainment venues and casinos. According to deputy finance minister Julapun Amornvivat, the government could choose to limit the gaming floor to 5% of total space.”
Minimum investment. Licenses would be offered for small, medium, large and extra-large complexes. In the first phase of development, only extra-large resorts are expected to be approved. They would require a minimum investment of 100bn baht
Taxation. Gross gaming revenue would be taxed at a proposed rate of 17%.
Entry and fees. The bill prohibits people under age 20 from casino gambling. Thai nationals would be required to register and pay a casino entry fee.
Global Operators await Green Light, Thai Casino Report
Las Vegas Sands, MGM Resorts, and Wynn Resorts—all US companies operating in Macau—have shown interest in Thailand. Other interested parties include Macau-based Galaxy Entertainment Group and Malaysia’s Genting Berhad.
During a Q2 call on July 24, LVS President and COO Patrick Dumont discussed Thailand’s potential, stating, “Depending on the way it’s set up and the opportunity that’s there in terms of structure, it could be very interesting for us. We’d love to be part of it.”
Wynn Resorts CEO Craig Billings described Thailand as “a major tourism destination with a world-class service culture. So, we will continue to closely monitor advancement of the legalization process.”
Buddy Lam, Galaxy’s Director of Corporate Affairs, recently told GGRAsia that Thailand is “one of the most popular destinations for travelers. We believe it will draw a lot of attention if it decides to open for IR development.”
MGM Resorts President and CEO Bill Hornbuckle mentioned that the company is evaluating what the new market “may ultimately bring to the company.”
Quashing the ‘grey economy’ of Illegal Gambling
Thai Prime Minister Srettha Thavisin is a vocal supporter of casino resorts as a means to boost tourism. He also views them as a way to address the “grey economy” of illegal gambling in the Buddhist kingdom.
“It’s time for our society to stop hiding the gambling, which is out there, and just properly regulate and take care of it,” he said.
“I am not sure when the law will get approved and an entertainment complex can start operation. It will probably take some time. During the interim period, we need to tackle those illegal activities.”
