Thailand’s Casino Industry Set to Welcome Global Operators

Thailand is on the brink of a gambling revolution, eyeing the legalization of casino resorts to boost its economy. While some lawmakers push for government-run venues, the finance minister argues for the expertise of global operators. Opening the market to international investors could position Thailand as a premier gambling destination, attracting tourism and investment. Dive into Thailand’s ambitious plans and the emerging debate over who will control the kingdom’s casino future.

Thailand to Open Casino Industry to Global Operators, Urging Lawmakers to Finalize Legalization Plans

Thailand is moving closer to legalizing casino resorts, a move that could transform the country’s tourism and economic landscape. Deputy Finance Minister Julapun Amornvivat has urged government departments to finalize a tax collection strategy for the proposed gaming industry. He has set a swift timeline, with plans for a detailed proposal by mid-October, according to the Bangkok Post.

Currently, gambling in Thailand is largely illegal, with the exception of the national lottery and betting on state-run horseraces. However, recent developments have revived discussions around gaming complexes, first initiated in 2023 under former Prime Minister Srettha Thavisin. The current administration, led by Paetongtarn Shinawatra, has indicated support for advancing this ambitious project.

Gambling Industry’s Potential Impact

The push to legalize casino resorts in Thailand mirrors strategies in countries like Japan, which is developing its first casino in Osaka. The primary goals include increasing tourism, stimulating investment, and creating new employment opportunities. Additionally, legal casinos would enable Thailand to recapture revenues currently lost to neighboring countries like Myanmar and Laos, as well as curb the illegal grey market.

In March 2023, the Thai House of Representatives approved a draft casino bill with an overwhelming majority of 253 out of 257 votes. A study conducted at the time projected that legalized casinos could boost Thailand’s annual tourism revenue by 394.7 billion baht ($12 billion). The move would also potentially increase the per-trip spend to 65,000 baht, resulting in an additional 448.8 billion baht in revenue.

In the best-case scenario, this initiative could catapult Thailand into the global casino industry, significantly contributing to the country’s standing as Southeast Asia’s second-largest economy.

Debate Over Who Should Run the Casinos

The discussion around casino legalization in Thailand has ignited a debate over who should operate these gaming complexes. MP Korrawee Prissanantakul advocates for government-operated casinos, arguing that state control would ensure the benefits reach the broader Thai population, not just select investors. “All Thais would benefit from this policy, not only certain investors,” Prissanantakul stated.

However, Finance Minister Julapun Amornvivat disagrees. He favors an open market approach, welcoming global operators who meet specific criteria. According to his proposal, applicants must be limited or public companies registered in Thailand with a minimum paid-up capital of 10 billion baht. The application process would include a 100,000 baht filing fee, an initial license fee of 5 billion baht, and an annual fee of 1 billion baht. Licenses would be valid for 30 years, with an option for renewal every ten years.

This open approach has already attracted the interest of major industry players, including Las Vegas Sands Corporation, Wynn Resorts, Caesars Entertainment, MGM Resorts, Galaxy Entertainment, and Hard Rock. Even Asian gaming giants like Genting and Melco are reportedly in the running.

Stoking Competition with Regional Clusters

The current plan calls for up to five casinos spread across Thailand, with two located in Bangkok and others in Chiang Mai, Phuket, and the Eastern Economic Corridor. However, some industry experts argue this approach would create regional monopolies. In a 2023 analysis, veteran gaming author Daniel Cheng suggested the government adopt a “regional cluster concept” to encourage competition. This model would support the development of three to four complexes in key tourism areas and additional Cotai-style cluster zones in rural regions.

Interestingly, MP Prissanantakul supports this idea, even though he initially called for government-operated casinos. His evolving stance indicates a potential compromise that could better distribute the industry’s benefits across Thailand.

Thailand’s path to legalizing casino resorts marks a pivotal moment in the country’s gaming industry. While Finance Minister Julapun Amornvivat advocates for opening the market to global operators, others like MP Prissanantakul push for government control to ensure widespread benefits. The outcome of this debate will shape the future of Thailand’s gambling landscape, determining how it balances economic growth, tourism, and public welfare. With major global players already eyeing opportunities in Thailand, the kingdom stands poised to become a significant player in the international casino industry. However, the final decision on operational control and structure will be crucial in defining the success and inclusivity of this ambitious plan.