LEGALIZATION IN THAILAND
Bill, operators must be registered as a juristic person under Thai law, either as a limited company or a public limited company. Consequently, foreign operators seeking to participate in the entertainment complex business must establish a local entity in Thailand. Applicants are also required to have a minimum paid-up capital of 10 billion baht (approximately US$272 million). There are no nationality restrictions for directors. The location of entertainment complexes must be in areas designated by Royal Decree, allowing the government to strategically determine and expand approved locations over time. Each complex must operate at least four types of businesses as specified in the Entertainment Complex Act. While casinos are permitted, they must not exceed 10 percent of the total complex area, with the exact ratio varying depending on the location as determined by the Royal Decree. There is speculation over potential casino sites being at Klong Toey Port in Bangkok, U-Tapao Airport near Pattaya, Phuket, and Chiang Mai, although no official confirmation has been made. Applicants for the entertainment complex license must submit an investment plan, specify the employment ratio between Thai and foreign workers, and outline measures to mitigate operational risks associated with the complex. Any license awarded will be valid for 30 years, with renewals capped at 10-year terms. The initial license fee is set at 5 billion baht (approximately US$150 million), with an annual fee of 1 billion baht (around US$30 million ) required to maintain operations. The Entertainment Complexes Operation Regulatory Office is mandated to inspect operations every five years to ensure compliance. In addition to licensing fees, the entertainment complex committee is responsible for developing a tax regime for gross gaming revenue. A feasibility study conducted in 2024, led by Deputy Finance Minister Julapun Amornvivat, suggested a 20 percent tax rate on gross gaming revenue. However, this rate has not been officially confirmed and may change during the legislative process, as it is not yet specified in the current draft. The final tariff structure is expected to be established through subsequent regulations, with details likely to emerge during
legislative discussions.
The latest version of the Bill also addresses land lease terms for constructing entertainment complexes, extending the maximum lease period to 50 years – an increase from the 30- year limit under Thailand’s Civil and Commercial Code. License holders may delegate the management of an entertainment complex, either partially or entirely, subject to approval by the Policy Committee. The license itself may also be assigned with the committee’s consent. Any changes to directors, executives, shareholders, or organizational structure must be reported to and approved by the Policy Committee to ensure regulatory compliance. The Road Ahead If the legislative process proceeds smoothly, Thailand could have a definitive answer by the end of 2025 as to whether the Entertainment Complex Bill will become law. If it does, then the bidding process for project licenses is likely to start in the middle or latter part of 2026. The final shape of the law is likely to resemble the public consultation draft released last year, although changes could be introduced during the first and second readings in Parliament. By June or July this year, after the third reading before the Lower House, the regulatory framework should become clearer, outlining the requirements for prospective investors. This clarity will be crucial for both domestic and international stakeholders as they prepare to angle for a slice of Thailand’s new casino industry pie. Gambling Act While much attention has been directed toward the legalization of the Entertainment Complex Bill, which authorizes casino operations, Thailand’s gambling industry remains governed by the Gambling Act B.E. 2478 (Gambling Act), a piece of legislation that was enacted way back in 1935. This legislation, last amended in 1962, has remained largely unchanged for over six decades.
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IMGL MAGAZINE | MARCH 2025
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