Thailand has taken its first step towards legalising casinos, as the government looks to attract high-spending tourists to support the economy while also checking revenue leakage from illegal gambling.
The House of Representatives on Thursday voted in favour of a study by a panel of lawmakers to allow casinos to be housed within large entertainment complexes. A total of 253 out of 257 lawmakers present voted in favour of the plan.
Deputy Finance Minister Julapun Amornvivat said the study would be forwarded to the cabinet for a decision on whether legalising casinos is “suitable for the nation.”
Thailand is the latest country to consider competing for a pie of the global casino industry, which IBIS World estimates generated $263 billion in revenue last year.
The United Arab Emirates set up a framework for legalised gaming in September, with the emirates of Abu Dhabi and Ras Al Khaimah seen as frontrunners to introduce casinos.
Galaxy Entertainment Group and MGM Resorts International have been studying potential opening of casino resorts in Thailand as a hedge against uncertain prospects in Macau. Closer to home, casino operators in Singapore and the Philippine are putting up a challenge to Macau, which earned $22.75 billion in casino revenue last year.
The study by the House panel found that Thailand could lift tourism revenue by about $12 billion a year by legalising casinos and housing them within large entertainment complexes. Average tourist spending could rise 52% to 65,050 baht per trip once the entertainment hubs are built, netting additional earnings of as much as 449 billion baht, according to the study.
Prime Minister Srettha Thavisin, who has been aggressively pushing policies to attract foreign investment and spur tourism, on Thursday expressed his support for the plan to legalise what he called “the grey economy” for better oversight and proper tax collection.
“It’s time for our society to stop hiding the gambling, which is out there, and just properly regulate and take care of it,” he said.
“I am not sure when the law will get approved and an entertainment complex can start operation. It will probably take some time. During the interim period, we need to tackle those illegal activities.”
Though most types of betting are illegal in Thailand, any opening of casinos would be seen to be in line with the recent embrace of some liberal ideas to revive a tourism industry that has yet to return to its pre-pandemic highs.
In 2022, Thailand became the first country in Asia to decriminalise cannabis, although the Pheu Thai-led administration is now moving to ban its recreational use. The country is also set to become the first in Southeast Asia to legalise same-sex marriages.
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