Thailand’s legal agency, the Council of State, has released draft rules allowing casinos with an initial 30-year licence, renewable for another decade.
Based on the draft rules, these casinos will be integrated into large entertainment complexes that include hotels, convention centres, and amusement parks. Public feedback on the draft rules is open until August 18.
Prime Minister Srettha Thavisin, who took office less than a year ago, supports the legalisation of casinos to improve oversight and tax collection. This initiative aligns with his broader strategy to attract foreign investments to Thailand. The draft legislation is part of the country’s efforts to revive its tourism industry, which was severely impacted by the COVID-19 pandemic.
Regulatory framework
The detailed 22-page draft of the casino law outlines plans to develop large-scale entertainment venues with casinos in locations to be determined by the Thai government. It proposes a “reasonable” entry levy for Thai nationals, like Singapore’s model, and suggests that gaming areas should not exceed 5 percent of the total project area. The remaining space should be used for complementary hotel and entertainment offerings.
Following the Cabinet’s approval, the bill will be debated and potentially amended in Parliament. If legalised, Thailand could see its first integrated resorts (IRs) with casinos opening as early as 2029, ahead of Japan’s MGM Resorts International’s $10 billion IR development in Osaka, which is expected to be completed by 2030. According to brokerage CLSA, a legalised Thai casino market could generate annual gross gaming revenues of $15.1 billion (€13.8 billion), positioning it as the third largest market globally based on current levels.
Global interest and economic potential
Thailand’s move to legalise casinos places it in competition with other nations like the United Arab Emirates and Japan, who are also eyeing a share of the lucrative global casino market. According to IBIS World, the market generated approximately $263 billion (€241 billion) in revenue last year. Major international casino operators such as Galaxy Entertainment Group, MGM Resorts International, and Las Vegas Sands Corp. have expressed interest in expanding into Thailand if the market becomes available.
The country’s 500-member House of Representatives has already backed a study by a panel of lawmakers recommending the establishment of legalised casinos within large entertainment venues. This strategy aims to attract high-spending tourists and boost tourism revenue by about $12 billion (€10.9 billion) annually.
Liberalisation and modernization efforts
Despite Thailand’s conservative and majority-Buddhist society, where most forms of betting are currently illegal, the proposed legalisation of casinos is in line with recent liberalisation trends. In 2022, the Southeast Asian country became the first country in Asia to decriminalise cannabis. It is also on track to become the first in Southeast Asia to legalise same-sex marriages.
The draft bill specifies that the large entertainment venues housing casinos should be in designated areas and operated by companies registered in Thailand with a minimum paid-up capital of 10 billion baht (€259.4 million). It also proposes the establishment of a comprehensive entertainment venue policy panel led by the Prime Minister and the creation of a regulatory agency.
Strategic locations
Tourism is a critical industry for Thailand, accounting for about 20 percent of total employment and roughly 12 percent of the nation’s $500 billion (€458 billion) economy. According to government data, foreign arrivals have surged by about 34 percent, reaching over 20 million by July.
According to various reports, potential locations for the new entertainment complexes include Greater Bangkok, Phuket, Chiang Mai, and Chonburi, home to the popular beach resort Pattaya. These venues must be within 100 kilometres of major airports, enhancing their accessibility to international tourists.