Thailand is considering a groundbreaking move towards legalizing casino gaming, with the Ministry of Finance taking the lead in assessing this proposal. The initiative stems from a recent study recommended by a House committee, now endorsed by the cabinet, marking a pivotal shift in the country’s approach to gambling.
Key Agencies Involved
The Ministry of Finance spearheads this assessment in collaboration with 16 other government bodies. These include crucial ministries like Tourism and Sports, Social Development and Human Security, Higher Education Science Research and Innovation, and others spanning areas from agriculture to industry. Consulting agencies also cover legal and cultural aspects, including the Office of the Council of State and the National Office of Buddhism.
Study Recommendations
The study proposes a unique tax structure, with a 17% tax on gross gaming revenue, making it notably competitive in the region. Local patrons may face an entry levy, and licensing terms are specified at 20 years initially, renewable every five years thereafter. Notably, major casino developments would necessitate significant investments, starting from US$2.7 billion.
Implementation Timeline and Investments
Anticipations suggest Thailand could witness its inaugural Integrated Resorts (IRs) by 2029, marking a potentially rapid progression in legalized gaming compared to Japan. The proposed model emphasizes joint ventures between the government and private entities, resembling Macau’s successful concession approach.
Strategic Location Considerations
The study underscores the importance of situating these IRs near international airports, ensuring accessibility for global visitors and maximizing economic benefits.
Comparison with Japan’s IR Development
Thailand’s proactive approach positions it ahead of Japan in this sector. While Japan’s MGM Resorts International project in Osaka awaits completion by 2030, Thailand’s trajectory towards legal casino operations appears to be expedited.
Thailand’s exploration of legalizing casino gaming marks a significant turning point, promising economic growth and international engagement. By harnessing insights from multiple agencies and adopting a strategic tax regime, Thailand aspires to establish a competitive and responsible casino industry, potentially redefining its tourism landscape in the coming years.