GGRAsia – Thai casino proposal details still in play: reports

Thai casino proposal details still in play: reports

Apr 01, 2024 Newsdesk Latest News, Rest of Asia, Top of the deck

A bill that would legalise casinos in Thailand could be passed in the current government’s term, reported Reuters on Sunday, citing a Thai official it did not identify.

Members of Thailand’s House of Representatives voted on Thursday in support of a study recommending casinos be permitted in large entertainment complexes proposed for that nation.

Julapun Amornvivat, Deputy Finance Minister and chairman of a special House committee tasked with studying the matter, has separately been cited as saying such a complex would include a five-star hotel; what was termed a ‘landmark’; an exhibition centre; and restaurants, as well as a casino.

Reuters indicated Sorawong Thienthong, vice chairman of a parliamentary committee looking at matter, as saying under the proposals, private companies would shoulder the cost of construction and operation of such complexes, while the government would be responsible for taxing and regulating them.

But the Bangkok Post reported on Monday that the opposition Democrat Party had on Sunday voiced strong opposition to the Pheu Thai-led government’s plans.

In a separate story the same day, the same news outlet cited Sangsit Piriyarangsan, a member of the National Assembly’s upper house – the Senate – as saying he would like to see modified a current suggestion that casino complex should be located no more than 100 kilometres (62.1 miles) from an airport. Such a condition could affect the flexibility of investment strategies as it was restrictive and lacks transparency, he said.

The term “the Singapore model” has already been mentioned frequently in reports of a potential regulatory framework for a Thailand casino industry.

Mr Sangsit also took up that theme, as cited by the Bangkok Post. He said an entrance fee of THB2,000 (US$55) per person could be imposed, as well as the commonplace of an age restriction.

Maybank Investment Bank Bhd said in a Friday note, citing information it had gathered: “Assuming two years to finalise a regulatory framework and three years to construct, the first entertainment centre may only open in 2029.”

The institution added: “It is envisioned that licences will be awarded in phases, and up to eight entertainment centres will be built.”

Maybank said there was likely to be a 17 percent tax on gross gaming revenue (GGR) – which would be one of the lowest for any casino jurisdiction in Southeast Asia – and corporate tax of 20 percent to 30 percent levied on pre-tax profit.