Tax gain from casino legalisation ‘not worth it’: critics
Academics slam proposed entertainment complex bill, pointing out that the casinos would compound gambling addiction
Several parties have criticised the government’s proposed bill to allow casinos to operate legally within entertainment complexes in the country, saying that tax revenue gained from casinos would not be worth the ensuing social problems.
A source from the Finance Ministry said this week that the draft of the Entertainment Complex Act is in the final stretch and set to undergo a public hearing this month.
The draft stipulates that entertainment complex operators must register as a company in Thailand with registered capital of at least 10 billion baht. They must apply for a licence which is valid for 30 years and will be reviewed every five years.
Thai citizens must pay a fee of 5,000 baht per time to enter casino and gaming complexes, while foreigners must pay the first year fee of 5,000 baht and 1,000 baht for the following year. All entrants must be over 20 years old.
Economist Chidtawan Chanakul said on Tuesday that legalising casinos in Thailand will result in increased gambling addiction among the public, which could undermine the family institute and contribute to crime.
“A study in the US has found that for every dollar earned from casinos in Las Vegas, the US government has to pay 3 dollars to remedy the impact of casinos. It is therefore not worthwhile," she said.
Chidtawan, who teaches economics and political science at Kasetsart University, also criticised the government's argument regarding the advantage of legal casinos as creating jobs for local communities.
“Jobs created in the casinos have no economic value. They are low-skill jobs and cannot help Thailand transition to a high-income country,” she pointed out.
“The government kept using Singapore as an example of successful casino legalisation. But unlike Thailand, Singapore has very low levels of corruption,” said Chidtawan. “The Philippines also legalised casinos, which resulted in economic and social problems due to rampant corruption. The country’s GDP is even lower than Thailand’s.”
Chidtawan concluded that Thailand should not legalise casinos as we lack readiness both socially and economically.
Nualnoi Trirat, director of the Centre for Gambling Studies, said that the stipulation that entertainment complex operators must have a registered capital of 10 billion baht will only allow large corporations to reap profits in Thailand.
She also slammed the proposed structure of the Entertainment Complex Policy Board, to be chaired by the Prime Minister, saying it lacked representatives from private sectors and academics from independent institutes.
Nualnoi voiced her concern regarding corruption suppression in the casino business, pointing to the fact that Thailand has always scored low in the good governance index despite having an anti-corruption agency.
“This proposed bill is full of weaknesses and should be rejected,” she said. “Most importantly, legalising casinos will not rid the country of illegal ones, as can be seen from our neighbours.”
