Thailand is moving closer to legalizing casino resorts, as Deputy Finance Minister Julapun Amornvivat pushes for a comprehensive plan to establish entertainment complexes in the country. The finance minister has called on the customs, revenues, and excise departments to devise a tax-collection system for the proposed industry, with a plan expected to be ready by mid-October.
This initiative aligns with the government’s broader efforts to modernize the gambling landscape, which currently only allows for the national lottery and state-regulated horse racing. The introduction of casino resorts aims to boost tourism, attract investment, and provide new employment opportunities, echoing similar efforts in Japan.
Government Opens Market to Global Players
Julapun’s stance diverges from suggestions made by MP Korrawee Prissanantakul, who advocated for government-run casinos. Korrawee argued that such an approach would ensure that the profits benefit the country directly. However, Julapun stressed that the industry should be left to experienced investors, confirming that all private companies meeting the established criteria will be welcome to participate.
Under the proposed regulations, interested operators must be limited or public companies registered in Thailand, with a paid-up capital of at least 10 billion baht. The licensing process will involve a 100,000-baht filing fee, an initial license fee of 5 billion baht, and an annual fee of 1 billion baht. Licenses will be valid for 30 years and renewable every 10 years, ensuring long-term involvement from global players.
Major international casino operators, including Las Vegas Sands, MGM Resorts, Wynn Resorts, and Caesars Entertainment, have already expressed interest in joining the Thai market. Other potential contenders like Genting and Melco have also shown enthusiasm for entering this growing sector.
Strategic Plans for Casino Development
The current proposal outlines a vision for up to five casinos, with two located in Bangkok and others in popular tourist destinations such as Chiang Mai, Phuket, and the Eastern Economic Corridor. This strategy aims to spread the economic benefits of the casino industry across the country. According to industry expert Daniel Cheng, this could lead to “regional monopolies” unless multiple complexes are established in each location to foster competition.
In response, Korrawee Prissanantakul supported a wider industry structure that could distribute wealth more effectively, proposing that multiple casinos in each region might better share the economic gains.
Tax and Regulatory Challenges
One of the remaining challenges involves determining how tax collection will be handled. Julapun highlighted the need for precise regulations, suggesting that a new agency may be required to oversee tax matters. However, the State Fiscal and Financial Disciplines Act specifies that tax collection responsibilities fall under the Ministry of Finance’s customs, revenues, and excise departments.
Julapun reiterated that global entertainment companies like Walt Disney and Universal Studios could also establish a presence in Thailand, provided they adhere to transparency and regulatory processes.
As Thailand prepares to welcome these global operators, the government’s efforts to implement a robust regulatory framework will be key to ensuring a safe and profitable industry. With lawmakers finalizing their plans and international players eager to enter the market, Thailand is poised to become a major destination for integrated resort development in Southeast Asia.
Source:
“All Private Investors Welcome to Participate in Thailand’s IR Industry“, asgam.com, 2 October 2024.