Muhammad Cohen, a columnist for the specialized publication IGB, delves into the potential of the Thai gambling industry through a series of analytical pieces.
With nearly unanimous backing from parliament and endorsement from the cabinet of ministers, the push to legalize casinos in Thailand is gathering steam. Prime Minister Srettha Thaweesin has outlined a goal of inaugurating a land-based casino within the next two years. This marks the initial stride towards establishing "integrated entertainment complexes" featuring gambling in tourist hubs across the kingdom.
Contrasting Progress: Thailand vs. Japan
Thailand's rapid advancement stands in stark contrast to Japan's sluggish pace in the gambling industry. Legalization efforts in the world's third-largest economy commenced in 2013, with final legislative approval granted in 2018. However, Japan's inaugural license for a land-based casino was only issued in 2023, with the opening of an integrated resort not anticipated until 2030. Two additional gambling licenses remain unallocated, as local and national officials appear to be awaiting decisive action from the other party.
Thailand appears poised to beat Japan in opening its first integrated resort. "We're seeking a smaller slice of the pie and a more adaptable—not to mention transparent—government partner," remarked Michael Soll, President of the Innovation Group.
Similar to Japan, Thailand has contemplated legalizing casinos for decades, but tangible progress has only recently materialized. "With 99% of parliament members voting to approve casinos, I believe they will succeed this time," remarked David Leppo, Chairman and CEO of FootballBet.com, on Thailand's gambling landscape.
The government initiative will issue up to five licenses for "entertainment complexes," the Thai equivalent of integrated resorts. Proposed sites are situated within 100 km of international airports, with a 20-year license duration, requiring a minimum investment of THB 100 billion ($2.8 billion/£2.17 billion/€2.52 billion), and imposing a 17% tax rate on gambling operations. This move is anticipated to generate substantial revenue for the state treasury while catalyzing tourism through the introduction of new entertainment destinations.
Thailand: A "Gambling Scheme" to Entice Tourists
In 2019, Thailand welcomed 40 million foreign tourists, ranking eighth globally in tourist numbers and fourth in tourism revenues, totaling $61 billion. However, in 2023, the country experienced a notable decline in visitors from China, its primary tourist source, with only 3.5 million arrivals compared to 11 million in 2019. Despite this, total foreign visitors reached 28 million, comprising 70% of the 2019 figure. Nonetheless, tourism receipts in 2023 amounted to $34 billion, representing only 56% of the 2019 total. Thailand aims to attract higher-income visitors through Integrated Resorts (IRs).
"Integrated resorts are proven economic drivers that stimulate investment, tourism, and job creation," asserts Brendan Bussmann, Managing Partner at B Global. "Thailand possesses ample opportunities to develop various facets that will further bolster tourism, leveraging existing infrastructure, thus utilizing integrated resorts to enrich the current landscape."
"There has been a lack of innovation here for quite some time," remarks a seasoned Thai hospitality executive. "The legalization of casinos aims to attract the right caliber of tourists, not merely establishments catering to marijuana enthusiasts."
While Thailand swiftly legalized cannabis sales in 2022, the process may not be as straightforward for casinos. Experts both in Thailand and abroad caution that the kingdom must navigate several complex issues that could potentially impede or derail the initiative. Addressing these challenges will demand diligence and compromise to devise uniquely Thai solutions. Nevertheless, the introduction of Integrated Resorts is expected to draw a new demographic of tourists—prosperous and affluent individuals seeking leisure in Thailand.
