Thai PM defends casino bill on TV show
Paetongtarn Shinawatra says entertainment complexes with casinos would boost the economy.
Thailand.- Prime Minister Paetongtarn Shinawatra has again defended the bill to legalise casino resorts in Thailand saying that it would boost the country’s economy. In her weekly TV Show, Empowering Thais, broadcast yesterday (May 4), Shinawatra said integrated resorts would attract foreign investment and generate significant tax revenue for the government.
Referring to concerns among academics and religious groups over gambling harm, Shinawatra said the aim was not to promote vice but to bring the country in line with a global trend. Shinawatra also accused opposition parties of misinforming the public about the contents of the bill.
She said: “Entertainment complexes will not lead Thailand to its worst vices… Developed countries like Singapore, the US, Japan and the UAE follow this global trend. They know that sand, sun, sea are not enough any longer. There must be manmade attractions. We don’t want Thailand to miss the trend.”
Shinawatra noted that it would be difficult for Thai citizens to gamble in casinos due to checks on their financial and criminal backgrounds. The proposed legislation 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.
Analysts at Maybank Securities (Thailand) have forecast that casinos in Thailand could generate THB278bn (US$8.39bn) annually in revenue. Approximately THB195bn would be derived from gaming activity, while the remaining 30 per cent is expected to come from non-gaming segments such as accommodation, food and retail.
Analysts said the country’s large tourism base and relatively low proposed tax rate on gross gaming revenue (GGR) position it favourably in the region. They estimate that EBITDA margins for casino resorts could reach between 34 per cent and 49 per cent. That would surpass the performance of Macau and Singapore casinos, where tax rates on mass-market play range from 25 to 40 per cent.
A survey conducted by the National Institute of Development Administration (Nida) found almost half of Thais believe that the bill to legalise entertainment complexes with casinos would not pass without the casino component included in the package.
The survey of 1,310 adult respondents conducted from April 21 to 23 found that 46 per cent believed the bill would be rejected if the casino element was dropped, while 33 per cent said the bill would pass. Some 19 per cent said it would be impossible for the bill to be tabled in the House without casino legalisation and 2 per cent had no comment.
