Thai cabinet moves to legalise casino complexes and online gambling to boost tourism and generate revenue, despite concerns from the Council of State and societal implications. The government plans to present measures to parliament soon for further deliberation.
The Thai cabinet on Monday gave the green light to legalizing gambling and casino complexes. This decision came despite reports last week of concerns raised by the Council of State. On Monday, Prime Minister Paetongtarn Shinawatra insisted that a bill was now being sent to parliament to kickstart the ambitious proposal. The move is expected to boost foreign tourism to the country and generate tens of billions of baht in revenue for the government. At the same time, Digital Economy and Society Minister Prasert Chantararuangthong also announced that the government is moving to legalise online gambling.
The cabinet on Monday approved the introduction of legalised casinos as part of government-sponsored entertainment complexes. A proposed bill was approved by the cabinet. However, it will be revised and altered by the Council of State, which last week raised concerns that the scope of the measure is not broad enough.
In short, the Council secretariat will ensure that the bill sent to parliament aligns with the government policy statement delivered by Prime Minister Paetongtarn Shinawatra in September 2024.
The news was announced by Ms. Paetongtarn at a press conference where she was flanked by her ministers.
Government compares Thailand’s casino plans to Singapore’s successful entertainment model
Speaking to reporters, Ms. Paetongtarn emphasized that this was a new development for the country. In particular, she compared the government’s plans to a similar development in Singapore. At length, the city-state has developed a model for success over the last 14 years.
In February 2010, Singapore’s first casino opened its doors for the Chinese New Year. Previously, the Singaporean government granted two concessions. These included the Malaysian Genting Group. Just two months later, the Marina Bay Sands opened.
Following the success of this venture, Singapore gave the green light and financial support for the launch of the second phase and expansion of its casino and entertainment complexes in 2024.
Just as in Thailand, gambling and casinos were previously outlawed in the conservative country. Thailand is hoping for a similar outcome.
Proposed casino developments in Bangkok expected to boost tourism and generate significant revenue
However, there are voices urging caution. Nonetheless, on Tuesday, the reaction in Bangkok’s city district to the proposal was overwhelmingly positive.
Krungsri Securities (KSS), for instance, noted that the development will certainly boost tourism.
The financial group estimated that a complex in Bangkok—including shopping malls, high-end hotels, and man-made tourist attractions such as theme parks—would cost $8 billion or ฿280 billion to develop.
After funding is raised, it would take 5–10 years to develop. However, it would immediately begin generating jobs, particularly in the construction industry. The financial house suggested it could generate as much as ฿59–84 billion per year for the government.
In contrast, on Monday, Deputy Minister of Finance Julapun Amornvivat, who is spearheading the plan, was more circumspect. He predicted it would create 9,000–15,000 jobs and generate ฿12–฿40 billion per annum for the government’s coffers.
Casino legislation expected to aid tourism but raises concerns about cultural and economic implications
Similarly, it would boost foreign tourism by 10–15% per annum. In particular, it would help the industry during the off-peak season.
On Tuesday, Thanavath Phonvichai of the University of the Thai Chamber of Commerce (UTCC) was more guarded. He accepted that Thailand must follow suit with other countries such as Singapore, Vietnam, the Philippines, Cambodia and Laos. Certainly, it is true that some countries generate over ฿1 trillion in added revenue from the industry.
Nonetheless, he was concerned about the cultural implications of gambling in Thailand. Therefore, he feels that the industry, if launched in the kingdom, must be managed with skill. Furthermore, he called for more consultation and information on the proposed development.
For instance, in South Africa, the results have been less positive. The country has a unique culture and fascination with gambling.
Indeed, it has been said that many of the population view gambling as a secondary source of income. Therefore, the introduction of legalised gambling has seen some damage caused to the fabric of the country.
Council of State and cabinet to finalize gambling legislation before presenting to parliament
“I believe this policy has both pros and cons. Society still needs more discussions, understanding, and state-led preventive measures to mitigate any negative impacts. As government studies found in South Africa, when a large proportion of the population participated in entertainment complexes, it led to problems. Therefore, the proportion of foreign visitors to these complexes should be higher than locals,” Mr. Thanavath explained.
After Monday’s briefing, it was explained that the bill would finally be sent to parliament in two months. The Prime Minister, Ms. Paetongtarn, was adamant that the Council of State alterations were simply to bring the bill into shape with stated government policy.
The press conference earlier heard from Mr. Pakorn Nilpraphun, Secretary-General of the Council of State. In short, he emphasized that the Council had no issue or disagreement with the government proposal.
Nonetheless, he explained that the drafted bill was based on deliberations by the House of Representatives. Consequently, it was too focused on the move to allow legalised gambling and casinos.
Digital Economy Minister outlines plans to legalise online gambling and begin policy implementation
Afterwards, the bills that will be presented to parliament will be in keeping with government policy as stated.
This was to develop and manage tourist attractions and entertainment complexes to boost the foreign tourism industry. However, this will include casino outlets, which are expected to occupy 10% of any developed complex.
Ms. Paetongtarn was anxious to emphasize that the bill would be sent to parliament. She did not know how long it would take to have it passed but urged members to push it as expeditiously as possible.
Casino bill already causing division at cabinet level as Bhumjaithai Party appears less than convinced
Minister outlines plans for Casinos, Disneyland and a tax support system for workers to Parliament
At the same time, on Monday, Digital Economy and Society Minister Prasert Chantararuangthong announced that the government was also moving to legalise online gambling. At this time, input from various government agencies was being collected.
Mr. Prasert explained that it was not yet clear what legal changes would be made to bring this about.
“That’s the principle. Illegal online gambling is commonplace these days, and we’re trying to make it legal,” he said.
Cabinet approval marks an initial step toward legalising online gambling in Thailand
At the same time, on Monday, Digital Economy and Society Minister Prasert Chantararuangthong announced that the government was also moving to legalise online gambling. At this time, input from various government agencies was being collected.
Mr. Prasert explained that it was not yet clear what legal changes would be made to bring this about.
“That’s the principle. Illegal online gambling is commonplace these days, and we’re trying to make it legal,” he said.
Certainly, on Monday, it was noticeable that Ms. Paetongtarn was flanked by Pheu Thai government ministers as she firmly announced the government’s intentions. Previously, the Bhumjaithai Party had expressed reservations about this policy.
Furthermore, the legal measures or bills to bring these changes must first be passed through parliament. Certainly, at that stage, there is scope for political wrangling or disagreements despite the cabinet approval on Monday.
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