In spite of the recent political turmoil within the country, efforts to establish casino resorts in Thailand are picking up speed. That initiative recently received backing from the country’s different political parties.
Thailand's Deputy Finance Minister Julapun Amornviva stated that the nation's new administration supports the initiative to introduce integrated resorts to the Southeast Asian nation and intends to progress in that direction. The finance minister stated that the proposal received backing from 80% of the politicians present at a recent discussion on the matter.
Reports about the political support for Thai gaming establishments surfaced following a public comment period on the 22-page Draft of the Comprehensive Entertainment Business Act B.E. This period lasted until Aug. 18, and it seems that Thai citizens overwhelmingly favor the introduction of casino hotels as a means to enhance the tourism sector, a significant contributor to the nation's economic activity.
Speculation suggests that Thailand may grant up to five casino licenses initially, with the rumored sites being two in Bangkok, and one in each of the Eastern Economic Corridor, Chiang Mai, and Phuket. Every location would have a licensing duration of 30 years.
Last month, former Prime Minister Srettha Thavisin was unexpectedly ousted from power, yet the currents of political change in Thailand — a nation known for its political instability — aren’t undermining the argument for casinos.
Paetongtarn Shinawatra has become the new prime minister, which is significant as she is the offspring of former Prime Minister Thaksin Shinawatra. Thaskin has expressed his backing for Thai gaming establishments, informing the media that their casino hotels may play a crucial role in enhancing the national economy.
His claim might have merit, as estimates suggest that Thai gaming establishments could produce over $15 billion in gross gaming revenue each year. If that prediction turns out to be correct or surpassed, it would position Thailand as one of the biggest casino markets globally. Although that growth rate of GGR would fall behind Macau and Nevada, it would sufficiently compete with or surpass Singapore.
The governing Pheu Thai Party has admitted that Thailand is currently lagging behind other nations in the region, such as Cambodia, Myanmar, the Philippines, and Singapore, regarding legalized gaming. At present, Thailand lacks legal casinos and sports betting, yet the nation is home to a significant number of illegal gaming establishments, leading to issues for local communities and law enforcement agencies.
The current political drive in Thailand for integrated resorts holds significance on several levels, particularly regarding the nation’s goal of launching some of those establishments ahead of MGM Osaka's opening in 2030. Furthermore, a welcoming regulatory framework might be crucial in attracting major operators.
It is thought that Las Vegas Sands, MGM Resorts International, and Wynn Resorts are some of the worldwide gaming giants looking to obtain Thai licenses. MGM announced it would accomplish this via its subsidiary MGM China.
Specialists think Thailand will choose a 17% tax on gross gaming revenue (GGR), mirroring the rate used in Singapore. That tax rate is considered appealing and would compete effectively with other casino markets in the area.
