Thai government stakes its future on casino complex amid pressure

The Thai government faces mounting pressure to reevaluate the particulars of its proposed casino and entertainment complex, designed to spur economic development. Senator Sangsit Piriyarangsan, who has been conducting inquiries into casino legalization, contends that the current blueprint necessitates revisions.

Sangsit contends that the bidding process for the casino complex project should not exclusively favor Thai companies.

By allowing foreign entities to participate, concerns regarding favoritism, corruption, and opacity could be alleviated. He argues that this inclusive approach would foster public trust in the project, ensuring it serves the nation’s interests.

Moreover, Sangsit asserts that the requirement for the proposed casino complex to be situated within 100 kilometers of an airport could impede potential investments.

He proposes more flexible criteria and suggests emulating the Singapore model, where casino complexes cater to both meetings, incentives, conferences, and exhibitions (MICE) groups and gamblers.

Additionally, he calls for the implementation of an efficient transportation system, such as an electric train service, to connect the venue to the airport.

To mitigate the potential adverse effects of gambling, Sangsit recommends implementing measures such as a 2,000 baht entrance fee per person and imposing a minimum age restriction.

He also advocates for a system whereby families can report problem gamblers to a gambling control committee if their gambling behavior is causing significant economic harm.

In terms of revenue allocation, Sangsit insists that the law should clearly outline the portion of proceeds from the casino complex designated for public welfare.

He suggests that these funds could be directed towards elderly care, public health initiatives, and establishing a fund to address youth gambling and provide treatment for gambling addiction.

Furthermore, Sangsit urges the government to streamline the bidding process and expedite the completion timeline for the winning private sector bidder to one-to-two years.

This would help mitigate potential delays stemming from rapidly evolving market conditions and demand fluctuations.

Integrated Entertainment

Deputy Finance Minister Julapun Amornvivat, chair of a special House committee studying the potential of an integrated entertainment complex and casino, highlighted that such a venture would offer a blend of diverse entertainment options, introducing a novel tourism format to enhance state revenue while tackling illegal gambling concerns.

According to Statista, integrated entertainment complexes worldwide amassed a value of US$1.5 trillion in 2022, with projections indicating growth to US$2.2 trillion by 2028.

Countries such as Macau, the US, Singapore, South Korea, the Philippines, Vietnam, and Indonesia have notably benefited from this sector, generating substantial income.

Studies reveal that integrated entertainment complexes have significantly impacted Singapore’s economy, attracting over 300 billion baht in foreign investment, boosting tourism revenue by 47%, and creating more than 20,000 high-income jobs.

A study presented to Parliament on March 28 indicated that legalizing integrated entertainment complexes and casinos led to a decrease in gambling addiction and illegal gambling. The study also highlighted that casino revenues comprise three main components: casino tax, licensing fees, and a casino entry fee.

The Thai House study suggested that legalizing casinos within large entertainment complexes could boost tourism revenue by approximately US$12 billion, potentially increasing the country’s GDP growth by 1.16 percentage points.