Thailand's Entertainment Complex: Legalising casinos – Thailand's next big gamble?
Executive Summary
Thailand's recent discussions on legalising casinos signal a potential paradigm shift, with the nation possibly moving towards a more open and progressive economy. This move could challenge long-held cultural and moral norms, many of which are deeply intertwined with religious beliefs. The proposed establishment of entertainment complexes, featuring casinos as a key component, represents a bold step that could reshape Thailand's economic landscape and its position on the global stage.
Entertainment facilities with legalised casinos, dubbed "Entertainment Complex" (สถานบันเทิงครบวงจร), are said to generate trillions of USD in additional income for the country and increase tourist spending by over 50 per cent per trip per person. By legalising gambling, Thailand would join neighbouring countries, including Singapore, Malaysia, and the Philippines, who are earning billions of dollars each year from casino businesses. The government emphasised the co-operation between public and private bodies, especially experienced international players, to support the country's first step towards achieving sustainable growth in the sector.
However, navigating this dynamic market requires a nuanced understanding of local regulations, cultural sensitivities, and consumer preferences. Several lobbyist groups have already petitioned the government with white papers in opposition to the initiative. Political parties, including coalition parties, have expressed uncertainty about supporting it.
After all, the legalisation of casinos may not be as easy as it seems. Issues such as the prevalence of foreign gambling websites and recent cases involving high-level police officers implicated in illegal gambling operations loom large, raising numerous concerns, especially regulation, corruption, and potential societal repercussions.
The path towards legalisation is likely to be complex, requiring careful consideration of all stakeholders and a comprehensive approach to address potential risks and ensure equitable benefits for Thai society.
From Scandal to Solution? Background on Thailand's Casino Debate
Gambling has long been a controversial aspect of Thai society, where it remains both illegal and morally frown upon. According to Gambling Act B.E. 2478 (1935)), the law currently govern gambling activities, Thailand sees limited forms of betting, such as animal fights, horse racing, and government’s lottery. They are tolerated by the law due to the cultural and historical significance.
Recent developments have exposed a troubling situation in Thailand involving widespread illegal online gambling. One such story includes a high-level case involving the country’s police chief in a scandal linked to money laundering operations via mule accounts.
“ไฟไหม้เจ็ดครั้ง ไม่เท่าเล่นพนันครั้งเดียว”a Thai proverb that literally translates to "Seven fires are not equal to one gambling." It vividly reflects a deep-seated cultural aversion to gambling, depicting the consequences of gambling, emphasising that even multiple fires cannot compare to the ruin that gambling can bring.
A similar discussion emerged 30 years ago with some hotel operators already preparing to embrace gambling activities but to no avail. Until recently. Pheu Thai government under former PM Srettha Thavisin, has unearthed discussions on legalising gambling within a controlled environment. The proposal focuses on the development of an Entertainment Complex, which includes the potential legalisation of casinos. The draft bill emphasises stringent regulations, explicitly prohibiting online or electronic connections to gambling activities to prevent remote participation and ensure a tightly regulated gambling environment.
Under the leadership of Paetongtarn Shinawatra, the current prime minister, the government has made significant strides in promoting tourism by prioritising policies that encourage new ventures and the development of man-made attractions.
An extraordinary committee in the House of Representatives chaired by deputy finance minister Chulaphan Amornvivat (known as “Casino Committee”) has been tasked with studying the feasibility of opening a full-service “Entertainment Complex” (สถานบันเทิงครบวงจร). The findings suggest that this project could serve as a solution to put an end to illegal gambling while also attracting foreign tourists, creating substantial job opportunities across various sectors, including the labor market, hospitality, service industry, and food and beverage sector.
Thailand's potential embrace of legalised gambling signals a possible shift towards a more progressive economy, challenging traditional cultural and religious norms. This move, driven by the desire for increased tourism and revenue, faces uncertainty as opposition and questions about implementation and equitable distribution of benefits remain. The coming months will be critical in determining whether Thailand adopts this new path and how it manages the complexities of integrating casinos into its society.
Casinos in Thailand: A political roll of the dice?
The political landscape surrounding Thailand's proposed Entertainment Complex project, which includes the potential legalization of casinos, has become increasingly complicated, revealing divisions within the government coalition. Initially, Pheu Thai party, leading the government, pushed for the development of a full-service entertainment complex to address illegal online gambling and boost the economy.
However, the initiative was met with resistance from coalition partner, including Bhumjaithai Party. Chaichana Chidchob, Bhumjaithai’s secretary general, raised concerns about the bill’s effectiveness in solving illegal gambling and unclear benefits for the state and citizens, doubts about its tourism impact, and lack of provisions for Thai employment.
A significant shift occurred on September 9, when Bhumjaithai Party leader Anutin Charnvirakul expressed conditional support for the project, provided it generates revenue, creates jobs, and benefits Thai citizens, emphasizing the need for careful zoning regulations.
Meanwhile, the opposition People's Party (formerly Move Forward) has introduced its own proposal aimed at legalizing underground gambling operations under strict regulatory oversight. Their framework includes provisions like a minimum player age of 20, income-based eligibility for players, and limits on the number and location of casinos. They also call for the establishment of a Gambling and Wagering Commission to oversee licensing and regulate gambling activities.
Betting on a Crossroads: Public discourse on Thai casinos
The study by the casino committee suggests that Entertainment Complex could generate substantial revenue, with tax collections estimated to exceed THB 12 billion (approx. USD 370 million) in its inaugural year. It is conceptualised as part of the "Fun Economy" industry, encompassing tourism, sports, entertainment, and MICE (Meetings, Incentives, Conventions and Conferences, and Exhibitions) sectors. This aligns with global trends in the entertainment venue market, which was valued at approximately USD 1.5 trillion in 2022 and is forecast to expand to USD 2.2 trillion by 2028.
The Entertainment Complex has attracted significant interest from both public and private sectors with stakeholders focusing on its potential benefits from tourism and regulatory concerns.
During a panel discussion hosted by Thailand’s leading online press house, The Standard, Governor of the Tourism Authority of Thailand (TAT), Thapanee Kiatphaibool, emphasised the need for strict regulation of both online and offline casinos. Chai Eamsiri, CEO of Thai Airways International, said the benefits outweigh the risks with a comprehensive legal framework in place, while Supalak Ampuch, Executive Chairman of The Mall Group, pointed to the complex's potential for many other related sectors that could benefit from Entertainment Complex, such as MICE and family entertainment. Suphajee Suthumpun, CEO of Dusit International, highlighted its potential to boost foreign direct investment (FDI), technology and knowledge sharing.
The project has garnered international attention, with Rob Goldstein, CEO of Las Vegas Sands, expressing enthusiasm about Thailand's potential in this sector.
"It's a very exciting market on many levels because of the size, accessibility and willingness of people to travel to Thailand. That's very clear. I think Thailand is the number one resort destination in Asia."- Rob Goldstein, Las Vegas Sands’ CEO
Major global casino operators - Las Vegas Sands, Wynn Resorts, Caesars Entertainment, MCM China Holdings, and Hard Rock Cafe as well as Galaxy Entertainment Group and Genting Singapore - have also expressed interest in this initiative.
On the flip-side, academics have expressed concerns highlighting its potential to worsen economic inequality by benefiting casino owners at the expense of lower-income households.
They warned that gambling addiction could increase, leading to long-term health and social issues, including financial burdens on families. Additionally, they cautioned that casinos might exacerbate corruption and money laundering due to weak law enforcement, further undermining social stability.
Thanakorn Khomkrit, secretary-general of the Stop Gambling Foundation, highlighted issues such as the misleading presentation of the project as more than just casinos, while in reality, it heavily focuses on gambling. He criticised the act for granting excessive power to a "Super Board" without clear regulations, enabling unchecked decision-making, favoritism towards big conglomerates, and monopolisation without public input.
Indeed, the youth and parents network alongside various child advocacy groups, submitted a letter to the PM arguing that the project would only benefit the capitalists. They cited fears of addiction and exploitation, and called for the suspension of the bill. The Network urged the government to focus on laws that protect children and youth, and to seriously enforce anti-corruption measures.
What’s Next
On August 26, the Ratchattrinamai Association of Thailand Under the Royal Patronage (Royal Turf Club) entered into a joint venture with Royal Sport Complex Company Limited (RSC) to invest in the Entertainment Complex project. With an estimated value exceeding THB 200 billion (USD 6.2 million), this project aims to create a world-class destination for entertainment and health tourism.
Operating under the name “The Royal Siam Haven” (or "The Land of Heaven of the King", when translated from Thai word-for-word), the Complex will include a horse race venue, clubhouse, golf course, yacht club, 6-star hotel, sports complex, luxury restaurants, theatre, hospital, wellness centre, learning centre, and a future legal casino.
The project will be developed across three key locations: Nong Chok, Lat Krabang, and Khlong Toei Port, and will be executed in three phases. Phase 1 will focus on the development of a horse racetrack and clubhouse; Phase 2 - a hotel, wellness centre, and golf course; and Phase 3 - full-service entertainment venue in accordance with the government’s policies.
Entertainment Complex Bill
Thailand's Parliament has approved a bill to legalize casinos. The draft Entertainment Complex Bill, B.E. … (ร่างพระราชบัญญัติการประกอบธุรกิจสถานบันเทิงครบวงจร พ.ศ. …; “Entertainment Complex Bill“), was passed in March 2024. According to Chulaphan, Deputy Minister of Finance as the Committee’s chairman, the Entertainment Complex bill is undergoing public hearings and under consideration of the MPs with expectation that the conclusion will be reached no later than early October for the cabinet approval.
Entertainment Complex encapsulates 26 types of activities and businesses, including:
shopping malls,
hotels,
restaurants,
bars,
spas,
convention centers,
health centers,
golf courses,
cruise clubs,
yacht clubs,
virtual reality games,
pools and cabanas,
duty-free and luxury boutiques,
entertainment parks,
movie studios
zoos,
museums,
public parks,
Muay Thai stadiums,
F1 racing tracks,
night markets,
cultural zones,
one-stop super applications,
transportation hubs,
financial infrastructure,
OTOP Thai products,
casinos,
and more…
The Ministry of Finance has proposed limiting casino operations to only 5% of the total complex area.
The Bill proposes entertainment complexes to be situated near international airports, within popular tourist provinces, or in designated border regions. Some locations have been proposed including the Klong Toey Port area in Bangkok, Bang Kachao in Samut Prakan, the Eastern Economic Corridor (EEC) region, Chiang Mai, and Phuket.
However, the final decision on these locations will be made after consulting with local communities through public hearings. This ambitious initiative is projected to commence operations by 2033.
Business operators wishing to obtain a license must be incorporated in Thailand, have a minimum registered capital of THB 10,000 million (approx. USD 270 million), and participate in a bidding process. Licenses will be categorized by investment size, with the Extra Large (XL) license—requiring a minimum investment of THB 100 billion (approx. USD 3 million) —being the first available. Licenses will be valid for 20 years, with the option for renewal every five years.
The taxation structure includes a 17% tax on gross gambling revenue and a progressive corporate tax rate of 20%, 25%, and 30%, along with potential excise taxes on other entertainment activities. Value-added tax exemptions will apply to these complexes. For casino entry, Thai nationals must pay a THB 5,000 fee (approx. USD 153) and meet registration requirements, while ‘vulnerable populations’, including minors and individuals under court orders or family requests, will be excluded.
To address social concerns, the government plans to establish a Gambling Prevention Fund for rehabilitation services, gambling education programs, and crime prevention measures, ensuring a balance between economic benefits and social responsibility.
Some details have been changed recently, including matters concerning Fiscal Discipline Act, such as revenue management, tax collection, which under the law stipulates to be the authority of the Ministry of Finance, Revenue Department, Excise Department, and Customs Department.
“Our [Committee’s] duty is to analyze the economic income impact to see how much income it will generate for the country. We mainly use the model from Singapore.”- Chulaphan Amornvivat, Deputy Finance Minister and Chairman of the Casino Committee (link)
Conclusion:
The road to realising Thailand's Entertainment Complex vision is paved with both opportunities and obstacles. While the potential economic benefits and tourism boost are enticing, the deep-rooted social concerns and political complexities cannot be ignored. The final decision rests on striking a delicate balance between economic gains and social responsibility, ensuring that any potential legalisation of gambling is implemented with careful consideration and robust regulatory frameworks. Ultimately, the success of this ambitious endeavour hinges on the government's ability to navigate these challenges and forge a path that benefits both the nation and its citizens. The coming months will be crucial in determining whether this controversial move reshapes Thailand's society and economy.
Royal Turf Club of Thailand
Founded in 1916 by a group of aristocrats as an alternative to the Royal Bangkok Sports Club, the Royal Turf Club of Thailand (known as Ratchattrinamai Association or Nang Loeng Racecourse), was a prominent sports club in Thailand primarily focused on horse racing. The club enjoyed royal patronage, with a long history of serving as a key venue for equestrian sports and social events in the city.
In 2018, the Crown Property Bureau, which owned the land where the racecourse was located, decided to terminate the club’s land lease. As a result, the Royal Turf Club was closed after more than a century of operation. Following the closure, the land has been earmarked for redevelopment, and the club has since announced ambitious plans to reinvent itself with a modern, multi-purpose entertainment complex.