ADVERTISEMENT

NewsThailand

Thailand’s Cabinet Greenlights a Draft Bill To Legalize Casinos

Thailand moved closer to legalizing casinos, with Prime Minister Paetongtarn Shinawatra announcing after the Cabinet meeting on Monday, January 13, that the Cabinet has approved the “Entertainment Complex Business Act,” a draft proposed by the Ministry of Finance.

The proposed legislation seeks to legitimize the country’s extensive illegal gambling activities by authorizing the development of entertainment complexes that include casinos, which would contribute to tax revenue.

This decision came after a period of public consultation, during which the draft was modified in response to input from the community and various agencies. According to Paetongtarn, the government anticipates that this initiative will boost both the economy and tourism.

Paetongtarn emphasized the urgency of swiftly implementing the entertainment complex project.

She referenced Singapore’s similar initiative, noting that casinos there represent just 10% of the overall business but have substantially enhanced tourism and contributed to economic growth and GDP increases.

Paetongtarn expressed optimism that this project would similarly uplift Thailand’s economy. An entry fee of 5,000 baht will be required for Thai nationals wishing to access the casinos.

Addressing potential concerns about the rise of illegal or unregulated businesses, the Prime Minister assured that transparent operations would prove beneficial, enhancing national income through increased tax revenues.

The proposed bill is set to be forwarded to the House of Representatives for further scrutiny and potential approval, though no specific timeline for its enactment has been established.

However, the Council of State has voiced several concerns about the draft law:

– The draft is exclusively focused on casino-based entertainment venues, which contradicts the government’s broader tourism strategy that aims to include various attractions like water parks, amusement parks, shopping centers, concerts, festivals, and premier sports events.

– The draft law should clearly define what constitutes an “entertainment complex,” whether it encompasses hotels, service establishments, restaurants, etc., since these sectors are already governed by existing laws, rendering a new law redundant.

– A study from the House of Representatives on entertainment complexes indicates an intent to curb illegal gambling. However, the common definition of an entertainment complex encompasses a wide range of recreational activities, not just gambling venues.

– Existing regulations already cover entertainment establishments, and problems with illegal gambling primarily arise from non-compliance and weak enforcement rather than the absence of regulations. The effectiveness of the new law in addressing illegal gambling is therefore questionable.

– To address illegal gambling or legalize gambling within entertainment venues more effectively, the government could revise the existing Gambling Act (1935) instead of creating new regulations for entertainment complexes.

– The Finance Ministry needs to clarify the draft’s objectives so that the Cabinet can decide whether the law is meant to foster tourist destinations or combat illegal gambling, as each goal requires different legal frameworks.

– Before presenting it to the Cabinet, the Ministry should ensure the public and relevant agencies, especially the Interior Ministry, are well-informed to alleviate widespread confusion and criticism regarding the bill’s objectives.

Finance Minister Pichai Chunhawajira has dismissed the Council of State’s reservations.

Pichai, who also serves as the deputy Prime Minister, stressed the importance of maintaining Thailand’s competitiveness in the tourism sector.

He noted that, aside from the Council of State, no other government agency has opposed the bill, though there have been concerns regarding jurisdiction and ensuring that Thais under 20 are prohibited from casino gambling.

The Finance Ministry is addressing these issues, focusing on attracting international tourists over domestic gamblers, Pichai explained.

He confirmed that the government decided against amending the Gambling Act since the primary focus is on entertainment, with gambling revenues being a secondary consideration.