Thailand seeks to legalize casinos to boost tourism, investments

Thailand's way of attracting tourists and foreign investments is through casinos. As reported by Bloomberg, a draft law allowing the initial acquisition of a 30-year licence with the possibility of extension for another 10 years has been published. The public commentary period will last until August 18.

As Bloomberg notes, Thailand is joining the United Arab Emirates (UAE) and Japan in competing for a share of the global casino industry, which, according to consulting firm IBISWorld, generated $263 billion in revenue last year.

Bloomberg writes that Galaxy Entertainment Group, an Asian owner of casinos, hotels, and entertainment venues, and MGM Resorts International, an American hospitality and entertainment company, are analyzing the potential for opening casino resorts in Thailand to hedge against uncertain prospects in Macau. Meanwhile, Las Vegas Sands, an American casino and resort company, stated last month that it would be interested in expanding to Thailand if "it becomes feasible."

Thailand's Prime Minister Srettha Thavisin, who took office less than a year ago, is aggressively promoting policies to attract foreign investments and supports the plan to legalize casinos for better oversight and proper tax collection.

As Bloomberg writes, the 500-member House of Representatives has already supported a study by a panel of lawmakers favouring the legalization of casinos in large entertainment complexes to attract high-spending tourists. The study found that Thailand could increase tourism revenues by approximately $16 billion by legalizing casinos and placing them in large entertainment complexes.

According to the draft law, the so-called large entertainment venues should be located in areas designated by the government and operated by companies registered in Thailand with a minimum capital of $386 million. The draft law also proposes the establishment of a comprehensive entertainment venue policy team headed by the prime minister and an agency to regulate the new industry.

Thai officials previously mentioned popular tourist destinations such as Greater Bangkok, Phuket, Chiang Mai, and Chonburi, where the Pattaya resort is located, as potential locations for entertainment complexes.

Tourism is one of Thailand's key industries. It accounts for about 20 percent of jobs and has a 12 percent share in the country’s $500 billion economy. The number of foreign arrivals from January to July this year increased by approximately 34 percent to over 20 million compared to the same period in 2023.