Thailand tightens proposed casino rules amid growing opposition
THAILAND has tightened proposals to legalise casinos within integrated “entertainment complexes,” amid growing concerns about the potential for problem gambling as the nation moves closer to becoming the latest player in the global gaming industry.
A revised draft of the entertainment complex Bill, published on Saturday, proposes that casinos can make up no more than 10 per cent of the premises of their host venue and creates disclosure requirements for locals who want to gamble. The locations of complexes will be carefully considered and determined by a special committee, according to the proposal, which has been put up for public hearings until March 1.
Another change is that casinos will now be required to be separated from the rest of the complex, with their own gates and entrances. The proposal still mandates that at least four other types of businesses must be housed inside the entertainment complexes, which may include a department store, a hotel, an amusement park and a yacht club.
The Thai government aims to pass the casino Bill this year, seeking to draw more foreign investment and collect more taxes, in a potential win for global gaming companies who have long canvassed for legalisation of casinos in the tourism hot spot. Galaxy Entertainment Group and MGM Resorts International are said to be studying potential opportunities in Thailand as a hedge against uncertain prospects in Macau. Las Vegas Sands has said it would be interested in expanding to Thailand.
Indeed, Thailand can emerge as a major player in the global gaming industry if casinos become fully operational in about six years, Citigroup said in a report last year. The country’s gross gaming revenue could reach US$9.1 billion, making it the third-largest market in the world behind Macau and Las Vegas and ahead of neighbouring Singapore, Citigroup analysts said.
Thailand is already the only country in Asia allowing legal access to cannabis, and last month it legalised same-sex marriage, a move expected to encourage more LGBTQ couples to travel to the country for their weddings.
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Still, opposition to the legalisation of casinos has been growing among Thais as the government pushes ahead with the initiative. Last month, a public survey showed more than half of respondents disapproved of the government’s plan to allow investments in casinos and legalise online gambling.
Potentially to address public concerns that legal casinos would fuel gambling addiction, the new draft contains restrictions that would effectively bar regular Thai citizens from gambling in the entertainment complexes. Thais wishing to enter casinos would be required to present a fixed-deposit bank account statement showing a balance of at least 50 million baht (S$1.98 million) dating back six consecutive months, while foreigners only have to be at least 20 years old, according to the draft.
A new section of the Bill also requires licensed operators to hire Thai nationals to work in the entertainment complexes, in a proportion to be set by a policy committee headed by Prime Minister Paetongtarn Shinawatra. Once established, the panel will also propose other rules to the Cabinet, such as the tax rate for casinos, the number of licences to issue and how much land casinos can occupy within the complexes.
Under the proposed legislation, entertainment complexes would be operated by Thai-registered companies with paid-up capital of at least 10 billion baht. A licence for 30 years will cost 5 billion baht in the first year and 1 billion baht for each remaining year. The permit can be extended for up to a decade on each renewal.
After the public hearing period, the Bill is expected to be approved by the Cabinet before being considered by the House of Representatives and the upper house Senate later this year. Each house typically takes months to pass a Bill in three required readings. BLOOMBERG
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