In 2020, Thailand became the first Asian nation to decriminalize the use and production of marijuana for medical purposes. According to the South China Morning Post, lawmakers may now legalize casinos as another way to generate new tax revenues, help boost the tourism economy and get the kingdom back on track in the post-Covid era.
Thailand’s Gambling Act of 1935 prohibited most types of betting, but gave the government the authority to approve certain gaming activities and venues.
By one estimate, several “entertainment complexes” with casinos could generate an additional 400 billion baht (US$11 billion) in annual tax revenues—a powerful lure for lawmakers, who may push the plan along before they recess in September.
“We’re focused on attracting foreigners to step up tourism and draw more money out of their pockets,” said Pichet Chuamuangphan, vice-chairman of the country’s casino committee. “This will also stem the outflow of money from Thai gamblers and help the government collect hefty taxes for our economic security.”
In a March report, Bloomberg Intelligence analysts Angela Hanlee and Kai Lin Choo observed that foreigners-only casinos in Vietnam and South Korea have “suffered without steady foot traffic,” a shortfall that could have been remedied by letting locals take part. Thai citizens now flock to neighboring countries, such as Malaysia and Cambodia, to gamble. Casinos in Poipet, Cambodia, just across the border from Aranyaprathet, are primarily patronized by Thai nationals.
According to the current proposal, residents would have to be at least 20 years of age to gamble and have a minimum 500,000 baht in their bank accounts. The plan would levy a minimum 30 percent tax on gaming revenue.
Greater Bangkok could host the first casino, followed by up to four more in Phuket, Krabi or Phang Nga, Pichet said. Tourist destinations like Chiang Mai and Chonburi also are on the wish list. The complexes must also include hotels, amusement parks, retail outlets and other attractions.
According to Gambling News, the casino committee weighed the potential impact of casinos on biodiversity, investment involving local and foreign partners, and how casinos can be part of integrated casino resorts similar to the business model established in South Korea and Japan.
In Japan, the cost of entry is steep, especially by today’s standards, with required investments of $10 billion to $12 billion. But there may be takers out there. In June, brokerage Sanford C. Bernstein said Las Vegas Sands Corp. would be a likely candidate for Thailand.
The Bangkok Post reports that the committee’s findings were forwarded to the House of Representatives on July 27.
