Thailand’s initiative to legalize and regulate casino complexes has piqued the interest of six multinational corporations known for managing world-class entertainment venues. According to local media reports citing Prommin Lertsuridej, the Thai Prime Minister’s secretary-general, while the specific companies were not named, previous mentions include Genting Malaysia, Galaxy Entertainment Group, Las Vegas Sands, MGM Resorts, Wynn Resorts, and Melco Resorts and Entertainment.
Melco Resorts has already begun to establish a foothold in Thailand, announcing plans to open an office in Bangkok. The company operates integrated resorts in locations such as Cyprus, Manila, Sri Lanka, and Macau.
Recently, the Thai Cabinet approved the draft of the Entertainment Complex Business Act, aimed at regulating and taxing the country’s underground gambling market. Prommin clarified that the focus of the legislation is not solely on gambling but on creating comprehensive tourist destinations, emphasizing that casinos would only occupy about 5% of the total area of these entertainment complexes.
These complexes are envisioned to be multifaceted developments featuring luxury hotels with at least 5,000 rooms. Additional amenities are planned, including convention and exhibition centers, indoor sports arenas, concert halls, shopping malls, duty-free shops, theme parks, high-end restaurants, and more.
The proposed sites are expected to be constructed on state-owned land near key tourism areas, covering a minimum of 118 acres, with robust transport and digital infrastructure in place. Prommin stressed the urgency of the project as Thailand competes with Japan’s upcoming integrated resort in Osaka.
The Thai government believes leveraging the existing tourism infrastructure could attract more international visitors and significantly boost the economy.
Economic Impact
According to the Thai Finance Ministry, the entertainment complex project is expected to increase the country’s GDP by 0.2% during the construction phase and 0.7% once fully operational. The initiative is anticipated to create around 20,000 jobs and enhance tourist arrivals by 5-10% during the low season, leading to a projected 13% rise in overall tourism revenue.
Interested investors must meet stringent criteria, including a minimum registered capital of 10 billion baht (approximately $288 million) and a commitment to invest at least 100 billion baht. Business proposals should present detailed plans for comprehensive entertainment complexes.
Online Gambling Legalization
In addition to physical casinos, Thailand is also moving to legalize online gambling, which is expected to generate roughly 100 billion baht ($2.89 billion) annually. This initiative is part of a broader strategy to diversify government revenue and regulate the digital gambling market.
Former Prime Minister Thaksin Shinawatra, seen as a significant influence on the current administration, has publicly supported these plans, indicating that the government is looking at ways to control access to online gambling platforms and ensure tax compliance. He also suggested the potential introduction of cryptocurrency as a payment method, taking inspiration from global fintech developments.
Draft regulations for online gambling reform are anticipated to be available within a month, reflecting the government’s commitment to swiftly advancing its regulatory framework.
Thailand’s dual strategy of developing integrated resort complexes while legalizing online gambling marks a notable shift in policy, gradually moving away from a long-standing prohibition on gambling since the Gambling Act of 1935. As illegal gambling ramps up, Thailand, along with other nations, is reconsidering its stance to capture the economic benefits that legalized gambling can provide.
Credit: Next.io