In a landmark move, Thailand is swiftly advancing towards the legalisation of casinos, aiming to establish “entertainment complexes” in tourist hotspots within two years. This rapid progress stands in stark contrast to Japan’s slow and steady approach, highlighting Thailand’s commitment to bolstering its tourism sector through strategic investments. Prime Minister Srettha Thavisin’s vision for these complexes represents a significant step forward for the kingdom, promising economic benefits and increased international appeal.
The journey of casino legalisation in Thailand, however, is not without its challenges. While Japan’s process has been sluggish, taking nearly a decade from the initiation of legalisation efforts in 2013 to the granting of the first licence in 2023, Thailand is poised to open its first integrated resort (IR) ahead of Japan. Innovation Group president Michael Soll attributes this to Thailand’s more flexible and transparent governmental approach, which contrasts sharply with the bureaucratic delays seen in Japan.
The government’s framework for these entertainment complexes includes up to five licences, each requiring a minimum investment of 100 billion Thai baht ($2.8bn) and a 17% gaming tax rate. These resorts must be located within 100km of international airports, ensuring accessibility for tourists. This initiative aims to not only boost tourism but also generate significant revenue for the government, with the overarching goal of positioning Thailand as a premier global destination.
In 2019, Thailand welcomed 40 million international visitors, ranking it eighth globally in arrivals and fourth in visitor receipts at $61bn. Despite a decline in tourist numbers during the pandemic, the country saw a rebound in 2023 with 28 million visitors, generating $34bn in receipts. The introduction of integrated resorts is expected to attract higher-spending tourists, further enhancing Thailand’s tourism revenue. Brendan Bussmann, managing partner of B Global, emphasises that these resorts are proven models that drive investment, tourism, and job creation, leveraging gaming as an economic engine.
However, the path to successful casino legalisation in Thailand requires navigating complex issues. Unlike the hasty approval of cannabis sales in 2022, which led to unforeseen restrictions and benefits, the casino initiative demands a more diligent approach. Experts agree that Thailand must craft solutions tailored to its unique cultural and social landscape, drawing lessons from the successful “Singapore model” while adapting it to local conditions. Establishing a robust regulatory framework is crucial to attracting blue-chip operators and ensuring the industry’s long-term sustainability.
Singapore’s integrated resorts, such as Marina Bay Sands and Resorts World Sentosa, serve as prototypes for Thailand. These resorts combine gaming with spectacular non-gaming features, attracting both tourists and locals. Singapore’s success in regulating its casino industry, including stringent ownership and employee regulations, a two-tiered tax system, and an entry fee for citizens, provides valuable lessons for Thailand. Fredric Gushin, managing director of Spectrum Gaming Group, advises Thailand to adopt these principles while tailoring them to its circumstances.
One critical aspect of Thailand’s regulatory framework will be how it addresses its existing gaming industry. While the national lottery and limited horse racing are the only legal gambling outlets, illegal betting is widespread. Integrating current stakeholders into the legal system and enforcing strict penalties for illegal operations will be essential. Suranand Vejjajiva, a former top government insider, suggests that the government must clearly communicate the benefits of legalisation to local provinces to mitigate opposition.
Combatting illegal gambling and retaining gaming revenue within the country necessitates allowing local play, albeit with regulations. A Singapore-style entry tax for Thai nationals could serve as a practical solution, ensuring that only those who can afford to gamble participate. This approach, coupled with responsible gaming measures and a minimum income requirement, would help mitigate potential social harms.
Despite the ambitious two-year timeline set by the Thai government, experts like David Leppo believe a four to five-year period is more realistic, given the need to address political, royal, religious, and law enforcement concerns. However, with strategic planning and the engagement of experienced advisors, Thailand has the potential to navigate these challenges and achieve its goal of opening its first casino within the stipulated timeframe.
