Thailand Will Not Operate Its Own Casinos Says Finance Minister

Contrary to the suggestion made by MP Korrawee Prissananantakul to have the government run its own casinos, the Thai government has opted to open the doors to global gaming operators. Finance Minister Julapun Amornvivat has emphasized that the industry will be accessible to all investors who meet the established criteria, including being limited or public companies registered in Thailand with a paid-up capital of no less than 10 billion baht.

This decision has already piqued the interest of some of the biggest names in the global casino industry. Companies such as Las Vegas Sands Corporation, Wynn Resorts, Caesars Entertainment, MGM Resorts, Galaxy Entertainment, and Hard Rock have all expressed their eagerness to participate in Thailand’s potential casino market. Also Genting and Melco are also expected to be in the running.

The potential impact of legalizing casino resorts in Thailand is substantial. A study has projected that the move could boost annual tourism revenue by 394.7 billion baht (£9 billion/€10.9 billion/$12 billion) and increase per-trip spending by 52%, to 65,000 baht.

Thailand’s decision to legalize casino resorts also aims to address the existing illegal grey market for gambling. Currently, many Thais are traveling to neighbouring countries like Myanmar and Laos to engage in casino activities, with the revenues from these activities flowing out of the country. By establishing a regulated casino industry within Thailand, the government hopes to recapture these lost revenues and provide a legal alternative for its citizens.

The current plan for the casino industry in Thailand involves the development of up to five casino resorts spread across the kingdom. Two of these complexes will be located in the capital city of Bangkok, with the remaining three situated in the popular tourist destinations of Chiang Mai, Phuket, and the Eastern Economic Corridor.

To ensure a healthy and competitive casino industry, industry veteran and author Daniel Cheng has proposed the “regional cluster concept.” This approach would involve the establishment of three to four casino complexes in major tourism areas, as well as smaller “Cotai-type cluster zones” in rural regions. This strategy would help to instill competition and prevent the creation of regional monopolies, as suggested by MP Korrawee Prissananantakul.

The Thai government has outlined a detailed regulatory framework for the casino industry, including licensing requirements and fees. Applicants seeking to operate casino resorts must be limited or public companies registered in Thailand with a paid-up capital of no less than 10 billion baht. They will be required to pay a filing fee of 100,000 baht, an initial license fee of 5 billion baht, and an annual fee of 1 billion baht. Licenses will be valid for 30 years, with the possibility of renewal every 10 years.

While the government has opted to open the casino industry to global operators, it is also mindful of ensuring that the benefits are shared more widely among the Thai population. MP Korrawee Prissananantakul’s proposal for the government to run its own casinos has been acknowledged, as it aligns with the goal of ensuring that all Thais can directly benefit from this new economic opportunity.