(Bloomberg) -- Thailand is aiming to legalize casinos next year to draw foreign investments and collect more taxes, a potential win for global operators who have for long canvassing for the legislation to benefit from the country’s status as a tourism hot spot.
The government is working to get a so-called “entertainment complex” bill, which will allow casinos to be housed within large venues, passed by the two chambers of parliament in 2025, according to Prime Minister Paetongtarn Shinawatra’s Secretary-General Prommin Lertsuridej.
The bill is expected to be approved by the Cabinet later this year before being considered by the House of Representatives and the upper house Senate next year. Each house typically takes months to pass a bill in three required readings.
“The law should be passed in six months from now at the earliest, so it should be next year to start,” Prommin told Bloomberg News in an interview in Bangkok. Several administrative steps will still be required once the bill clears the parliament before casinos can start operating, according to him.
Thailand can emerge as a major player in the global gaming industry if casinos become fully operational in about six years from now, according to Citigroup Inc. The country’s gross gaming revenue could reach $9.1 billion when fully ramped, which would make it the third-largest market in the world behind Macau and Las Vegas and ahead of neighboring Singapore, Citigroup analysts said in a report this week.
Galaxy Entertainment Group Ltd. and MGM Resorts International are said to be studying potential opportunities in Thailand as a hedge against uncertain prospects in Macau. Las Vegas Sands Corp. has said it would be interested in expanding to Thailand.
‘Big Investors’
Thai government has received interests from “big investors with world-class experience,” Prommin said, without giving specific names. “So many people have tried to talk with us,” he said.
Under the proposed legislation, entertainment complexes will be operated by Thai-registered companies with a paid-up capital of at least 10 billion baht ($286 million). A license for 30 years will cost 5 billion baht in the first year and 1 billion baht each for all the remaining years. The permit can be extended for up to 10 years upon each renewal.
A committee chaired by the prime minister will later propose finer rules, including the income tax rates for casinos, the number of licenses, and the locations. At least four other types of businesses must be housed inside the complexes alongside casinos, which may include department stores, hotels, amusement parks, restaurants or nightlife venues, according to the bill.
The government may initially grant five casino licenses in popular tourist destinations, with two in Bangkok and one each in Pattaya, Chiang Mai and Phuket, according to local media reports. Earlier this year, the lower house of parliament backed a study that favored setting up casinos within large entertainment venues to attract high-spending visitors.
While most types of betting have been banned in Thailand since at least 1936, almost 60% of Thais gamble, a 2021 study by Thailand’s Gambling Study Center found. Some Thais also travel to bet in casinos operated in neighboring Myanmar, Laos and Cambodia.
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