Cabinet approves bill for casino-entertainment complex
Thailand took another step towards legalising casinos on Monday, Prime Minister Paetongtarn Shinawatra, revealed after today's Cabinet meeting (January 13) that the Cabinet approved the principle of the draft "Entertainment Complex Business Act, " as proposed by the Ministry of Finance.
The draft law aims to legalise the kingdom’s vast underground gambling industry, allowing the establishment of entertainment complexes and casinos to generate tax revenue.
This approval follows a public consultation and revisions made based on feedback from the public and relevant agencies. The government hopes that this project will stimulate the economy and tourism in the country, Paetongtarn said.
Paetongtarn also stated that it would be beneficial for the entertainment complex project to be implemented quickly. She pointed out that Singapore implemented a similar project, where casinos accounted for only 10% of the business, and it significantly boosted tourism and economic growth, increasing GDP. She hopes this project will have a similar effect on Thailand’s economy. For Thai citizens wishing to access the casino, an entrance fee of 5,000 baht will be required.
Regarding concerns about the potential increase in illegal or grey market businesses in Thailand, the Prime Minister said that if everything is done transparently, it will benefit the country. Increased tax revenues would provide additional income for the nation.
The next step is for the draft law to be submitted to the House of Representatives for consideration and eventual enactment as law, but no deadline has been set for its enactment as law.
However, the Council of State has raised six points of concern regarding the draft law:
1. It focuses solely on casino entertainment venues, contradicting the government’s policy to promote well-rounded tourism destinations with other features including water parks, amusement parks, shopping malls, concerts, festivals, and world-class sporting events.
2. If the draft law focuses solely on "entertainment complexes", it must clearly define what constitutes an entertainment complex. Does it refer to hotels, service establishments, restaurants, etc? Since each of these activities is already regulated by specific laws, there is no need for a new law on this matter, as it would create redundancy.
3. The House of Representatives study on entertainment complexes says they will address the issue of illegal gambling. However, the public definition of an entertainment complex covers a variety of recreational activities, not a place specifically designed for gambling. Moreover, entertainment establishments are already regulated by laws. The issue of illegal gambling in these places stems from violation and lax enforcement of existing laws. Therefore, it is unclear how the proposed draft law will resolve the issue of illegal gambling.
4. If the government seeks to address illegal gambling or legalise gambling in entertainment establishments, it could update or amend the existing Gambling Act (1935) to tackle the issue more effectively, rather than focusing on regulating the establishment and management of entertainment complexes.
5. The draft’s objectives should be clarified by the Finance Ministry so the Cabinet can make an informed decision on whether the law is intended to promote the development of tourist destinations or address the issue of illegal gambling, as these two goals require different legal mechanisms and structures. Additionally, public opinion and feedback from relevant agencies, especially the Interior Ministry, should be considered.
6. Accurate information should be submitted to the public to clear up widespread criticism and confusion regarding the bill’s objectives before it is submitted to the Cabinet.
Finance Minister Pichai Chunhawajira has shrugged off the Council of State’s concerns.
Pichai, who also serves as deputy PM, emphasised the need for Thailand’s tourism industry to remain competitive with other countries.
He said that aside from the Council of State, no government agency opposed the bill, though concerns had been raised over areas of jurisdiction and how to ensure that Thais under the age of 20 were barred from gambling in casinos.
The Finance Ministry is working to address these concerns, as the government’s focus was on attracting foreign rather than domestic gamblers, Pichai said.
He said the government had opted not to amend the Gambling Act, since its primary focus was on entertainment, while gambling-related revenue was a secondary concern.
