Thailand’s government has defended its plan for the country to host a number of casino resorts, pledging strict regulations and transparency. Speaking at a press briefing on Wednesday, government representatives said a legalised casino industry could boost the nation’s gross domestic product (GDP) by 0.8 percent annually, and triple tourist spending in the country.
Julapun Amornvivat, Thailand’s deputy finance minister, said in the press conference that the initiative aimed to stimulate the country’s economy via private investment. He confirmed that each Thai casino resort – known there as ‘entertainment complex’ – would require at least THB100 billion (US$3.07 billion) in investment.
As of December, a draft version of an enabling bill proposed casino licences running for 30 years, with the possibility of renewal for a further 10 years.
Casino resorts in the country could only be operated by a limited company or a public limited company registered in Thailand, which must have a paid-up capital of at least THB10 billion.
The bill also outlined other forms of business permitted in the entertainment complexes aside from gaming. They include hotels, conference centres and tourism attractions.
Some commentators recently told GGRAsia that the process of bids and licensing entertainment complexes in Thailand might only come in 2027. That coincides with end of the term of the current government. It is a coalition headlined by the Pheu Thai Party, but with other parties recently expressing dissenting views on the casino policy.
The first reading of the enabling bill was initially scheduled for April but was postponed amid some public opposition.
On Wednesday, Mr Julapun downplayed public concerns about potential social impacts and risks of money-laundering activities, saying that a bill to regulate entertainment complexes was set to be reviewed by the country’s parliament.
The lower chamber of the National Assembly is due to examine the bill when parliament reconvenes in July, said the deputy finance minister, as cited by the Bangkok Post newspaper.
Mr Julapun said the government held multiple rounds of hearings with various sectors to listen to their concerns and clarify doubts. “This is Thailand’s opportunity … an essential engine to drive the economy,” he reportedly said.
Boosting tourist spending
Also at the press briefing, Suksit Srichomkhwan, deputy secretary-general to the prime minister, said entertainment complexes would be comprehensive leisure destinations, aiming to mitigate the impact of the annual low season.
Such projects would include exhibition centres, large-scale concert venues, museums, water parks, and amusement parks, he observed.
Mr Suksit also said the country could no longer rely on natural attractions due to competition from other countries, noting that entertainment complexes could help reduce reliance on seasonal or nature-based tourism.
The official said the government estimates that an entertainment complex could generate between THB12.04 billion and THB39.25 billion in annual state revenue, including tax income from five-star hotels and theme parks.
Mr Suksit said the initiative is projected to boost GDP by 0.23 percent during the construction phase, and once open, it could contribute 0.2 percent to 0.8 percent to annual GDP.
Tourist spending is also projected to increase from the current average of THB6,000 to THB7,000 per trip to approximately THB22,000, he added.
The government officials also stressed that casino facilities will operate under stringent regulations and will not be accessible to everyone.
The Nation newspaper cited Mr Suksit as saying: “It is not a ‘free casino’ or ‘liberalised gambling’ project. The integrated casino facilities will not be open to all and will be subject to stringent anti-money laundering measures and robust security protocols.”
The bill proposes that casinos take up only 10 percent of the area within each entertainment complex. It also includes a THB50-million bank deposit qualification for locals wishing to gamble in any casino complexes that might be set up in the country.
However, finance ministry officials have said that the THB50-million limit was “unrealistically high” and could be revised downward, according to The Nation outlet.
Mr Julapun expressed confidence the so-called “Entertainment Complex Bill” will be finalised within the remaining two years of Prime Minister Paetongtarn Shinawatra’s term in office.
“Once it [the bill] is listed … and a committee is appointed, it will follow the legal process,” with expectation that this could be “completed within the term of the current government, or by 2027,” Mr Julapan stated.
He added: “The government is not concerned that the law will not be approved by parliament, as it was proposed by the cabinet, which holds the majority in parliament.
“We are also confident that we can clarify and foster understanding with all dissenting parties, and expect it to be completed within two years.”
Mr Julapun had previously said that more than four major foreign investors had already scheduled meetings with the authorities there. Discussions had already taken place with representatives of global casino operators Wynn Resorts Ltd, and MGM Resorts International. “The two investors we’ve spoken with have shown significant interest in investing in Thailand,” said the official.
