Thailand’s political landscape is witnessing a significant shift with the announcement by former Prime Minister Thaksin Shinawatra supporting the legalization of casinos in the country. This development comes at a crucial time following the recent dismissal of former Prime Minister Srettha Thavisin, who was a proponent of the casino bill.
Legalizing the Underground Economy
Thaksin emphasized the importance of bringing Thailand’s substantial underground economy into the formal sector. Currently, this underground economy is estimated to be around 50% of the official economy. Thaksin proposed that legalizing online gambling, which reportedly costs Thais about 170 billion baht ($4.99 billion) annually, could significantly boost the GDP. By formalizing these activities, Thaksin suggested that the GDP could potentially increase by 50%.
Entertainment Complexes and Casino Investment
Another significant part of Thaksin’s vision involves developing entertainment complexes that would include casinos. This plan entails a massive investment of hundreds of billions of baht. Thaksin noted that casinos would occupy no more than 10% of these complexes, suggesting that the primary focus would be on creating broad entertainment venues rather than solely on gambling.
Implications for Stakeholders and Investors
The support from Thaksin Shinawatra is expected to be reassuring for stakeholders and investors, especially following the recent political upheaval with the dismissal of former Prime Minister Srettha Thavisin. Thavisin was a major advocate of the casino bill, which sought to legalize casinos and gambling in Thailand. His departure raised concerns about the future of the bill, given the opposition from certain factions, including Deputy Prime Minister Anutin Charnvirakul of the Bhumjaithai Party.
Political Dynamics and Future Prospects
With the election of Paetongtarn Shinawatra as the new Prime Minister, questions arose about the continuation of the casino bill. Paetongtarn’s supporters were known to be opposed to the bill, adding uncertainty to its future. However, Thaksin’s recent statements suggest a strong push towards the bill’s advancement.
The involvement of major Macau casino operators, including four of the ‘Big Six’ concessionaires, indicates significant international interest in Thailand’s gambling market. Their interest underscores the potential financial impact and the level of investment that could be drawn into the country.
Thaksin Shinawatra’s advocacy for the legalization of casinos represents a strategic vision aimed at addressing Thailand’s economic challenges. By bringing a substantial portion of the underground economy into the formal sector and investing in large-scale entertainment complexes, Thaksin believes that Thailand can significantly enhance its GDP. This vision, coupled with the ongoing interest from international investors, could mark a transformative period for Thailand’s economy and its approach to gambling.