Thai cabinet passes casino bill
The bill still needs approval from the House of Representatives, Senate and the king.
Thailand.- The cabinet has today (March 27) approved the bill to legalise casinos in Thailand. It will now be sent to the House of Representatives. If passed, it will then need approval from the Senate and the king.
The draft legislation would allow entertainment complexes with casinos in designated areas operated by companies registered in Thailand with a minimum paid-up capital of THB10bn (US$283m). A policy panel led by the prime minister and a regulatory agency would oversee the industry. The government would consider what types of projects and offerings would be considered. Casinos would occupy less than 10 per cent of each complex.
The draft bill stipulates that Thais wanting to access a casino would be required to pay a fee of THB5,000 (US$150) and show proof of at least THB50m (US$1.5m) in fixed deposits. Deputy finance minister Julapun Amornvivat had criticised the measure, which would exclude most citizens, but said it was decided to keep it in the bill and make possible amendments later.
Analysts at Citigroup have forecast that casinos in Thailand could generate US$1.91bn annually in gross gaming revenue (GGR). That would surpass the GGR of Singapore’s two casinos and place Thailand only behind Macau and Las Vegas.
An online survey conducted by the Ministry of Finance from February 28 to March 14 found that among 70,000 people, 80 per cent back the country’s proposed casino legislation. However, a more recent poll conducted by the National Institute of Development Administration (Nida) showed that many Thais have concerns about possible negative impacts.
Thai tourism operators warn that legalising casinos could lead to drop in Chinese visitors
The opposition People’s Party has said that tourism operators are concerned that casino legislation could cause Chinese visitation to drop. MP Parit Wacharasindhu noted that Beijing attempts to restrict Chinese citizens from travelling to gamble. He suggested this has had a negative impact on destinations with legal casinos, such as Singapore, the Philippines, and Macau.
In February, Thai prime minister Paetongtarn Shinawatra met Chinese president Xi Jinping. Xi warned that the legalisation could increase criminal activity and lead to gambling harm. Shinawatra insisted that casinos would be less than 10 per cent of each project, and that they would be family-friendly destinations.
