Thai Ministry of Finance to study feasibility of casinos
The Thai cabinet has approved a report on the viability of casinos.
Thailand.- The cabinet has approved a report by a special House committee examining the possibility of allowing entertainment complexes with casinos in Thailand. It has given the Finance Ministry 30 days to study its feasibility.
The report, by a House panel led by deputy finance minister Julapun Amornvivat, suggests that the government should allow the opening of entertainment complexes with casinos to boost the economy and dissuade the use of illegal casinos. The complexes would have casinos, hotels, shopping malls and amusement parks and would require an investment of at least THB100bn (US$2.75bn).
Prime minister Srettha Thavisin is reportedly in favour of the move. MGM Resorts International and Galaxy Entertainment Group have already shown interest in the possibility of casino resorts in Thailand.
Maybank: Thailand’s casinos could generate US$5.14bn in annual revenues
Maybank Securities has forecast that integrated resorts with casinos could generate an annual income of approximately THB187bn (US$5.14bn), equivalent to roughly 1 per cent of Thailand’s gross domestic product (GDP).
The projections are based tourist arrival figures for the year 2019. The suggested tax rate of 17 per cent on Thai casinos stands out favourably compared to neighbouring gaming jurisdictions such as Singapore, Malaysia, the Philippines, and Macau, where mass-market tax rates range from 25-40 per cent.
A previous study suggested that Thailand’s tourism revenues could increase by US$12bn if casinos are legalised at large entertainment complexes. It was estimated that the average tourist spend could increase by 52 per cent to THB65,050 (US$1,790) per trip.
