Casino plan gains momentum

The ruling Pheu Thai Party has defended its casino-entertainment complex project, saying it will legalise the underground activity and allow the government to collect tax revenue from it.
According to a statement on Pheu Thai’s webpage released on Saturday, legalising underground gambling activities and tax on the project itself could be worth more than 50% of GDP, which will help boost the economy and can be spent on education development and other projects.
Casino entertainment complexes will enable the country to tap into the so-called “fun” economy worth an estimated US$13.7 trillion, the ruling party said. The project is part of the Pheu Thai-led government’s policy statement, which Prime Minister Paetongtarn Shinawatra outlined in parliament on Sept 12.
“Over the past 20 years, efforts have been made to legalise economic transactions that are deemed illegal, but they failed because many in society were not open to such ideas. But in recent years, past and current governments have studied the possibility,” the statement said.
Citing the House committee’s report on the scheme, Pheu Thai said the fun economy, which covers tourism, sports, entertainment as well as Mice (meetings, incentives, conferences and exhibitions industries), has been growing steadily.
The global fun economy’s market value is estimated at US$13.7 trillion (about 483 trillion baht), and the government sees the potential to tap into it to bring more income into the country.
“One of the strategies is to legalise and tax casinos properly,” according to the party.
Pheu Thai also cited figures from the Fiscal Policy Office which show that the global business value of casino-based entertainment complexes in 2022 amounted to US$1.5 trillion (53 trillion baht), with that figure expected to rise to US$2.2 trillion by 2028.
The government is also pressing ahead with a bill to allow casinos to operate legally within these entertainment complexes.
According to government sources, the Finance Ministry has finished drafting the Entertainment Complex Act and the bill will undergo a public hearing as required by Section 77 of the constitution.
After the hearing, the bill, along with public feedback, will be presented to the cabinet for consideration.
Under the bill’s 65 sections, an entertainment complex must acquire a licence to operate, which would be valid for up to 30 years.
An operator must also pay 5 billion baht to register, plus an annual payment of 1 billion baht. Each complex will be assessed every five years. After 30 years, the licence can be renewed for another 10 years.
Individuals under the age of 20 are prohibited from entering such venues. The complexes are open to all foreigners, but Thai citizens must pay an entrance fee of 5,000 baht.
Under the bill, a policy board will be set up and chaired by the prime minister. It will be responsible for setting the rules and regulations governing gaming complexes.
Citing the House committee’s report on the scheme, former government spokesman Chai Wacharonke previously said the project was expected to generate at least 12 billion baht in taxes for the country in the first year alone.
A study by the House committee focused on three aspects: the economic, social, educational and cultural implications of having such venues in Thailand; business structure and revenue collection; and the legality and criteria for laws regarding entertainment and gambling regulations.
Five venues are seen as potential hosts for this project: two in Bangkok and one each in the Eastern Economic Corridor, Chiang Mai and Phuket.
However, Pariyes Angkurakitti, a spokesman for the opposition Thai Sang Thai Party, has slammed the project, saying lax law enforcement could hinder efforts to regulate any new casino industry.