29-3-2024 (BANGKOK) In a move that could reshape the nation’s tourism landscape, Thailand has taken its first step towards legalizing casinos, as the government seeks to attract high-spending visitors to bolster the economy while simultaneously addressing the issue of revenue leakage from illegal gambling operations.
On Thursday, the House of Representatives voted overwhelmingly in favor of a study by a panel of lawmakers to allow casinos to be housed within large entertainment complexes. The proposal garnered support from 253 out of the 257 lawmakers present, signaling a significant shift in the country’s approach to the global casino industry.
Deputy Finance Minister Julapun Amornvivat stated that the study would be forwarded to the cabinet for a decision on whether legalizing casinos is “suitable for the nation.” This move comes as Thailand joins the ranks of countries vying for a share of the lucrative global casino industry, which IBIS World estimates generated a staggering $263 billion in revenue last year.
The United Arab Emirates recently set a precedent by establishing a framework for legalized gaming in September, with the emirates of Abu Dhabi and Ras Al Khaimah emerging as frontrunners to introduce casinos. Closer to home, casino operators in Singapore and the Philippines are posing a formidable challenge to Macau, which earned an impressive $22.75 billion in casino revenue last year.
Prominent casino giants such as Galaxy Entertainment Group and MGM Resorts International have been actively exploring the potential of opening casino resorts in Thailand, viewing it as a strategic hedge against the uncertain prospects in Macau.
The study conducted by the House panel revealed that Thailand could potentially boost its tourism revenue by a staggering $12 billion annually by legalizing casinos and housing them within large-scale entertainment complexes. Additionally, the report estimates that average tourist spending could surge by 52% to 65,050 baht per trip once these entertainment hubs are established, generating additional earnings of up to 449 billion baht.
Prime Minister Srettha Thavisin, who has been aggressively pushing policies to attract foreign investment and spur tourism growth, expressed his support for the plan to legalize what he termed “the grey economy,” enabling better oversight and proper tax collection.
“It’s time for our society to stop hiding the gambling, which is out there, and just properly regulate and take care of it,” Thavisin stated, acknowledging the reality of the existing underground gambling market and the need for a regulated framework.
While most forms of betting are currently illegal in Thailand, the potential opening of casinos would be in line with the recent embrace of more liberal ideas aimed at reviving the country’s tourism industry, which has yet to return to its pre-pandemic heights.
In 2022, Thailand became the first country in Asia to decriminalize cannabis, although the current Pheu Thai-led administration is now moving to ban its recreational use. Additionally, the country is poised to become the first in Southeast Asia to legalize same-sex marriages, further cementing its progressive stance.
