The Thai cabinet has taken a significant step by approving a draft law aimed at legalizing casinos within the country. Influential political figure Thaksin Shinawatra, the former Prime Minister, emphasized the economic benefits that could derive from this move, suggesting that online gambling alone could generate as much as 100 billion baht (approximately $2.88 billion) annually in tax revenue for the government.
At a recent event in Bangkok, shortly after the cabinet’s approval, Thaksin highlighted the existing popularity of online gambling among Thai citizens, estimating that there are between two to four million users engaged in these activities. He elaborated that these users collectively possess around 300 billion baht in savings, with annual gains and losses approximating 500 billion baht. “If we can tax 20 percent, we could secure over 100 billion baht in revenue each year,” he stated.
Despite not holding an official position in government, the 75-year-old Thaksin remains a pivotal figure in Thai politics and is considered a guiding force behind the current administration led by his daughter, Paetongtarn Shinawatra, who is just 38 years old. Following the cabinet meeting, Paetongtarn addressed the media, explaining that the proposed casino bill would not only combat illegal gambling but also encourage increased investments in Thailand. “This initiative will ultimately benefit society,” she asserted, aligning it with the government’s broader strategy to enhance sustainable tourism, including the development of artificial tourist attractions.
The Finance Ministry, the bill’s sponsor, is expected to release more details about the envisioned “entertainment complexes,” which will include the casinos along with other facilities such as hotels, shopping centers, and theme parks.
Context and Regulations
Thailand currently experiences a paradox where most gambling forms are illegal, yet gambling remains immensely popular. Although activities like boxing and horse racing wagers are permissible, casinos have remained off-limits, prompting various administrations, particularly those backed by Thaksin, to consider legalization as a means to create jobs and stimulate tourism.
Under the provisions of the draft law, there will be strict age restrictions: individuals under 20 years will be prohibited from entering casinos. Foreign visitors will enjoy free access, but Thai citizens must pay a fee of 5,000 baht (about $144) to enter. Additionally, steps are being taken to establish a control system to regulate online gambling.
Thaksin mentioned plans for an identification system that would restrict underage gambling and assist in identifying and managing gambling addiction. “We envision something akin to a passport that would regulate who is allowed to participate,” he explained, although he did not elaborate on the specifics.
Future Perspectives
Government spokesman Jirayu Hoangsub stated that the bill will be sent to the Office of the Council of State for review and subsequently presented to parliament for deliberation and voting by both the House of Representatives and the Senate. “Isn’t it time for Thailand to acknowledge that there are both legal and illegal gambling establishments here and in neighboring countries? This initiative is poised to fortify our tourism sector,” he articulated.
Interest in Thailand’s potential casino market is growing, with major operators like Galaxy Entertainment Group Ltd., MGM Resorts International, and Las Vegas Sands Corp. exploring investment opportunities, particularly as uncertainties loom over markets like Macau.
In addition to discussions surrounding casino legalization, Thaksin also called for a broader acceptance of cryptocurrencies within Thailand’s financial systems, referencing emerging trends in global finance. He indicated that Phuket might serve as a testing ground for the use of cryptocurrency in daily transactions. “There will be no risk, it is just another currency in the world,” he concluded.
As Thailand continues to navigate this transformative legislation, the implications for its economy and tourism landscape remain substantial and far-reaching.
