Thailand’s Casino Legalization Receives Widespread Public Support

In a major shift in policy, Thailand is moving forward with plans to establish its first-ever official casinos. This initiative is part of a broader effort to legalize gambling and develop a mega-entertainment complex. Currently, most forms of gambling in Thailand are illegal, making this a significant change. The government decided to proceed with the casino project after a public hearing showed that 80% of participants were in favor of the proposal.

Neighboring Countries Are Already In the Game

Many of Thailand’s neighboring countries, including Cambodia, Singapore, Myanmar, and the Philippines, have already legalized casinos. These nations have used legalized gambling to attract tourists and boost their economies. The ruling Pheu Thai Party has pointed out that Thailand needs to remain competitive in this sector to keep up with its neighbors. Legalizing casinos is seen as a way to increase the country’s appeal to tourists, create jobs, and generate additional state revenue.

The Finance Ministry conducted a study on the potential impact of the casino project. The study found that most of the customers for these casinos, up to 90%, would likely be Thai gamblers. The government sees this as a way to combat the country’s widespread underground betting scene, offering people a legal alternative to illegal gambling. Currently, Thailand only allows state-controlled horse racing and a national lottery, making the casino proposal a major step forward in gambling reform.

Thaksin Shinawatra’s Push for Gambling Regulation

Thaksin Shinawatra, a key figure in the current government, has been outspoken in his support for legalizing gambling. In a recent speech, he emphasized that regulating and taxing gambling activities could bring significant financial benefits to Thailand. He argued that it would not only generate considerable revenue but also formalize a sector that already exists in an informal and unregulated manner.

The plan to legalize casinos aligns with broader efforts by the Ministry of Finance to create a massive entertainment complex. This project is expected to include not just casinos but also various forms of entertainment to attract both locals and tourists. A bill to legalize the casino project has been drafted, incorporating feedback from the public hearing. The next step is for this bill to be presented to the cabinet for approval. After that, the bill will be reviewed by the Council of State before being sent to the House of Representatives for a final decision.

Steps to Legalization and Regulation

According to Deputy Finance Minister Julapun Amornvivat, the bill will be adjusted based on public feedback and further discussions with coalition partners. Only then will it be sent to the cabinet for approval. The process is expected to take some time, but the government remains optimistic that the bill will pass.

If the bill is approved, only public companies with a registered capital of at least 10 billion baht (approximately $300 million) will be eligible to operate casinos. These companies will need to secure a 30-year license from the Entertainment Complex Policy Committee, with the possibility of 10-year renewals. Each license will cost 5 billion baht (around $149 million), with an additional annual fee of 1 billion baht ($30 million).

Overcoming Resistance from Conservative Groups

Past efforts to legalize gambling in Thailand have met with opposition from conservative factions, largely because gambling conflicts with Buddhist values. However, the current administration is optimistic about this new attempt, given the overwhelming public support. The strong backing from Thai citizens suggests a growing recognition of the need for reform, especially as the black market for gambling continues to expand and neighboring countries become more competitive in the casino sector.

While resistance to the idea still exists, the public’s support and the government’s determination to proceed could make this a reality. The legalization of casinos is poised to reshape Thailand’s gambling landscape and may provide the country with much-needed economic benefits, especially in terms of job creation and increased tourism.

Effects on Gambling Legalization in the Neighboring Countries

The legalization of gambling in countries like Cambodia, Singapore, Myanmar, and the Philippines has significantly boosted their economies, particularly through tourism and foreign investment. In Cambodia, for example, the rise of legal casinos, especially in border cities like Poipet and Sihanoukville, has attracted a large number of tourists, particularly from neighboring Thailand and China. These visitors contribute to the local economy through hotel stays, dining, and other tourism-related activities. According to a report by the Cambodian Ministry of Economy and Finance, the gambling sector accounted for around 2% of Cambodia’s GDP in 2019. The development of integrated resorts, such as NagaWorld in Phnom Penh, has been pivotal in attracting both tourists and international investors, transforming the country into a regional hub for gaming and entertainment.

Singapore’s entry into legalized gambling has also had a profound economic impact, particularly with the establishment of Marina Bay Sands and Resorts World Sentosa in 2010. These integrated resorts have contributed to a surge in tourism, which remains a cornerstone of Singapore’s economy. A study by the Singapore Tourism Board revealed that after the introduction of these casino resorts, tourism receipts grew by more than 20%, injecting billions into the economy annually. Beyond tourism, the gambling industry has also created thousands of jobs across various sectors, including hospitality, retail, and entertainment. Furthermore, the government has benefitted from increased tax revenues generated by the casino operators, helping to fund public projects and social services.

In the Philippines, the legalization of gambling, especially through Philippine Offshore Gaming Operators (POGOs), has significantly bolstered government tax revenue. POGOs cater primarily to foreign clients, particularly from China, and have generated substantial revenue for the country. In 2019, the Philippine Amusement and Gaming Corporation (PAGCOR) reported a record-breaking income of $1.5 billion, with a large portion coming from taxes on gaming revenues. These earnings have been reinvested into infrastructure, healthcare, and social welfare programs, benefiting other sectors of the economy. Additionally, the presence of legalized gambling has made the Philippines an attractive destination for foreign tourists and investors, further stimulating economic growth and job creation across various industries.