Thai Finance Ministry Takes Lead in Reviewing Casino Study

The Ministry of Finance in Thailand has taken the helm in overseeing a comprehensive study initiated by the House of Representatives, aiming to explore the possibility of introducing regulated casinos in the country. With the involvement of 17 government agencies, including the Ministry of Tourism and Sports, Social Development and Human Security, and others, the assessment will delve into the feasibility and potential implications of introducing casino gaming.

According to an "urgent letter" issued by the Secretariat of the Cabinet, the Finance Ministry has been given a month to compile a report addressing the casino issue, highlighting the urgency and significance of the matter.

The momentum behind the idea of establishing entertainment districts with integrated casinos in Thailand has been steadily growing, buoyed by support from Deputy Finance Minister Julapun Amornvivat and Prime Minister Srettha Thavisin. If approved by the cabinet's secretariat, a policy committee led by Thavisin would be formed to analyze the economic impact of introducing casinos and related matters.

Additionally, a committee comprising agency leaders would be tasked with examining various aspects of the proposed entertainment districts, including gaming.

The potential expedited progress on the casino issue in Thailand could attract the interest of major global gaming companies. The country's efficient approach could even position it to see its first gaming venue opening before MGM Resorts International's Osaka integrated resort, which is expected to debut in 2030.

The economic benefits of establishing entertainment districts in Thailand are substantial. Each venue would necessitate a significant capital investment, potentially injecting substantial revenue into government coffers. Moreover, by providing domestic gaming options, policymakers aim to curtail Thais' trips to neighboring countries like Myanmar for gambling, especially amidst ongoing civil unrest.

The study also proposes a favorable 17% tax rate for gaming operators, likely to garner industry support. Projections suggest that gaming venues could contribute significantly to Thailand's GDP, potentially driving a 1.16% annual increase.

Additionally, there are forecasts indicating a substantial uptick in international tourism by 52%, a crucial factor for a country reliant on foreign visitors for economic growth.

Analysts from Maybank anticipate that Thailand could approve up to eight gaming licenses, with expectations that leading Asia- and US-based operators will vie for these permits, signaling significant interest and potential investment in the Thai gaming market.

By fLEXI tEAM