Thailand to legalise casinos by 2025: A game-changing move

Rajashree Seal November 20, 2024

SiGMA news

Thailand to legalise casinos by 2025: A game-changing move

Aiming to attract foreign investments and boost tax revenues, Thailand is on the brink of legalising casinos by 2025. The proposed “entertainment complex” bill is expected to transform the nation’s tourism and gaming sectors by allowing casinos to operate within integrated venues. Prommin Lertsuridej, Secretary-General to Prime Minister Paetongtarn Shinawatra, said the Cabinet will approve the bill this year, with parliament to discuss it in 2025.

Speaking to Bloomberg News, Prommin said, “The law should be passed in six months at the earliest, so it should be next year to start.” However, he clarified that administrative steps would follow before casinos can begin operations. The legislative process involves multiple readings in the House of Representatives and Senate, which typically take months to complete.

If passed, the draft law could lead to Thailand’s first legal casino opening by 2029. Earlier last month, Deputy Finance Minister Julapun Amornvivat highlighted the law’s transformative potential, stating that the initiative has garnered 82% public support. He added that Cabinet approval is expected by the end of 2024, with parliamentary sessions extending into early 2025.

Economic impact and global standing

Citigroup analysts estimate that Thailand’s gaming revenue could hit $9.1 billion when fully operational, making it the third-largest gaming market globally, after Macau and Las Vegas, and ahead of Singapore. Big companies like Galaxy Entertainment, MGM Resorts, and Las Vegas Sands are reportedly exploring opportunities in Thailand as Macau faces uncertainties.

A recent study by the Fiscal Policy Office suggests that these entertainment complexes could boost foreign tourism by 5–20% and increase average visitor spending from 40,000 baht to 60,000 baht (€1,093–€1,640). This is expected to benefit the economy by creating jobs and increasing demand for local services.

Licenses and regulations

The Thai government may issue up to five casino licenses in major tourist hubs such as Bangkok, Pattaya, Chiang Mai, and Phuket. Only Thai-registered companies with a minimum capital of 10 billion baht (€273.4 million) will qualify to operate these complexes. Licensing fees include an initial payment of 5 billion baht (€136.7 million) and an annual fee of 1 billion baht (€27.3 million).

The draft law allows Thai citizens to access casinos with an entry fee of up to 5,000 baht (€137) per visit. Operators will hold 30-year concessions, renewable every 10 years. The bill proposes that 10% of the complex’s floor space be dedicated to gaming activities, doubling the earlier 5% suggestion.

Growing investor interest

International players, including Malaysia’s Genting Group, have shown keen interest in the project, which also integrates resort facilities. Financial institutions like JP Morgan see immense potential, particularly in Bangkok.