Thailand to legalize casinos in bid to attract tourism, investments
The authorities in Thailand are working on a law to legalize casinos. This Southeast Asian country aims to boost budget revenues from tourism and attract billion-dollar investments. There is no shortage of interested parties.
9:02 PM EDT, August 4, 2024
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 license 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.
Who will build casinos in Thailand?
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 as a 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 to the country and supports the plan to legalize casinos for better oversight and proper tax collection.
The 500-member House of Representatives has already supported a study conducted by a panel of lawmakers favoring the legalization of casinos in large entertainment complexes to attract high-spending tourists. The study found that Thailand could increase tourism revenues by approximately $12 billion by legalizing casinos and placing them in large entertainment complexes.
Tourism, the engine of the Thai economy
According to the draft law, large entertainment venues should be located in areas designated by the government and operated by companies registered in Thailand with a minimum capital of $283 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 holds approximately a 12 percent share in the country’s $500 billion economy. Compared to the same period in 2023, the number of foreign arrivals from January to July this year increased by about 34 percent to over 20 million.
