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Thailand Approves Draft Gambling Law to Introduce Regulated Casinos

Posted on January 27, 2025 | 10:21 am
Thailand-Casino-and-Gambling-Law-Approved-as-Draft

Thailand has taken a significant step toward legalizing gambling with the recent approval of a draft law by the government. The proposed legislation, known as the Integrated Entertainment Business Act, would pave the way for the establishment of casinos within integrated resorts across the country. If implemented, this would mark the first time in nearly 90 years that casinos would be legally permitted in Thailand.

Gambling in Thailand has had a tumultuous past. While it was once a popular activity in the late 19th and early 20th centuries, the Gambling Act of 1935 made most forms of betting illegal, with only state-run lotteries and horserace betting allowed. Despite these restrictions, illegal gambling activities have persisted, often linked to organized crime networks.

In recent years, pressure has mounted for Thailand to consider regulated gambling as a means to combat illicit operations and capitalize on potential revenue streams. Advocates argue that legal casinos could significantly contribute to the economy and reduce black-market gambling activities that have long flourished under the current prohibition.

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Key Provisions of the Draft Law

Under the proposed legislation, casinos will be permitted only within integrated resorts, which must include hotels, theme parks, stadiums, and other entertainment facilities. A crucial aspect of the bill is that casinos can occupy no more than 5% of the total resort area, according to the analysis published by Vivo Gaming.

The bill also outlines licensing conditions, stipulating that operators must be registered in Thailand and possess a minimum capital of $288 million. The licenses will be issued for a 30-year term, with a review conducted every 10 years. Operators will be required to pay an initial licensing fee of $144 million, followed by an annual fee of $29 million. Initially, five licenses are expected to be granted.

Additionally, the legislation introduces a 17% gross gaming revenue (GGR) tax, aimed at ensuring that the government secures a substantial portion of the profits generated by the industry.

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Potential Economic Impact and Next Steps

Proponents of the bill believe that legalizing gambling could have substantial economic benefits for Thailand. Estimates suggest that the introduction of regulated casinos could increase tourism by up to 10% and create approximately 15,000 new jobs. Furthermore, the government anticipates that a regulated market will significantly reduce illegal gambling operations and provide a steady stream of tax revenue.

However, before the law can take effect, it must pass through Thailand’s legislative process. The bill requires approval from the House of Representatives and the Senate before it can be enacted. If the process proceeds without significant delays, experts predict that the law could be finalized by mid-2025.

Source:

“Thailand Casino and Gambling Law Approved as Draft“, vivogaming.com, January 22, 2025.

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