LEGALIZATION IN THAILAND
individuals must have maintained a deposit account balance of at least 50 million baht (approximately US$1.5 million) over the preceeding six months. Although allowing Thai nationals to access casinos is not the primary objective of legalizing entertainment complexes, the importance of the local market from a business perspective cannot be overlooked. Local patrons provide a steady stream of revenue. The recent pandemic and closure of international borders provide useful lessons to businesses who are wholly reliant on tourist patronage. A regular flow of local patrons can help support more stable employment opportunities within the casino and related industries, as spending by local patrons (not just in the casino but also in other businesses in the entertainment complex such as restaurants, hotels and retail stores) can have a significant positive impact on the local economy. Having local patrons can also help integrate the casino into the local culture, making it a part of the social fabric and reducing potential resistance from the community. Singapore has provided a fine example of how to successfully balance revenue from both local and international visitors. Deputy Finance Minister Julapun Amornvivat has voiced concerns that this provision may conflict with the government’s efforts to eliminate illegal gambling, noting that approximately 10,000 accounts meet the proposed financial criteria. Additionally, this measure could hinder efforts to deter Thai citizens from gambling at casinos along the borders of neighboring countries. Already, the entrance fee for Thai citizens to access a casino is currently set at 5,000 Thai Baht (approximately US$150), which exceeds the entry fee for Singaporeans in Singapore at US$115. Given the significant disparity in income per capita between the two countries, such an entry levy would act as a significant deterrent against less financially well-off local patrons from visiting legalized casinos in Thailand. Despite these concerns, the Bill is expected to proceed to the cabinet for its first reading. Any amendments to this provision will likely need to be addressed by the appointed committee during the legislative process. Should this criterion remain unchanged, it could be a determining factor for international operators when assessing the viability of entering the Thai
market, which has otherwise generated considerable interest.
In addition to the above changes, the amended draft bill also seeks to address environmental considerations by requiring an Environmental Impact Assessment (EIA) report as a prerequisite for obtaining an entertainment complex license. Investment interest and regulatory challenges The potential legalization of casinos has attracted significant interest from global gaming operators. Las Vegas Sands, for instance, has expressed keen interest in the Thai market, although it must navigate regulatory challenges due to its agreement with the Singaporean government to operate only in well-regulated markets. The Royal Turf Club of Thailand has also shown strong commitment to investing in the entertainment complex, having already secured foreign investors. However, the regulatory framework will be a critical factor in determining whether global gaming giants choose to invest. The bidding process for project licenses will only begin once the law is officially enacted and the Entertainment Complex Committee is formed. This ensures a transparent and competitive process, crucial for attracting reputable investors. What investors need to know before potentially investing in the entertainment complex The Research Centre for Social and Development conducted a survey in December 2023, estimating that 63.1 percent of Thai nationals engaged in gambling activities during the year 2023, accounting for approximately 34.5 million people. Gambling in Thailand includes legal forms such as the government lottery, which is deeply ingrained in Thai society. The data therefore makes it difficult to determine how much of this percentage is comprised of those who had gambled with illegal underground casinos.
According to the current draft of the Entertainment Complex
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IMGL MAGAZINE | MARCH 2025
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