The Thai Ministry of Finance has recently unveiled a detailed report summarizing the results of public consultations on the draft Integrated Resort Act, a legislative effort that could pave the way for casino operations within the country. Conducted from August 2 to August 18, 2024, these consultations gathered insights from various stakeholders, including government agencies, private sector representatives, and the general public. The proposal centers on launching Entertainment Complexes across Thailand, with casinos set to stimulate economic growth and expand tourism.
Key Findings from Public Consultation
The consultation revealed that respondents strongly emphasized the need to prevent foreign dominance in the casino industry while fostering a fair, competitive market. Concerns were raised about maintaining operator financial stability and instituting responsible gaming measures. The consultations highlighted that this new industry should serve the entire Thai society, not just specific regions, fostering balanced growth and inclusivity.
Recommendations for a Nationally Beneficial Industry
1. Minimum Thai Ownership
One of the most critical recommendations involves a requirement for Thai nationals to own 30 to 50 percent of shares in casino operations. This ownership threshold aims to boost local investment and protect the industry from foreign domination.
2. Licence and Lease Terms
The draft law currently proposes a 30-year licence term, but opinions were divided. Some participants suggested a shorter 10-year term, while others recommended longer terms due to the substantial investment required. Additionally, there was a strong preference for limiting foreign land leases or ownership to 25 years to maintain local asset control.
3. Strategic Locations for Entertainment Complexes
Proposed casino locations extend beyond Bangkok to tourist-heavy destinations like Phuket, Chiang Mai, and Hua Hin. This strategy is designed to enhance regional development and attract a wider array of tourists, bolstering local economies.
4. Transparent Licensing Process
Stakeholders called for a fair, transparent bidding process for casino licences, advocating for the inclusion of foreign investors to encourage healthy competition. The recommendations also suggested capping the number of licences, with an overall limit of 3 to 7. Specifically, 2 to 3 licences would be allocated to Bangkok, while 5 to 7 would be distributed across other provinces.
5. Fee Structure
Concerns were raised about the potentially high fees associated with licences and entry, which might discourage operators and players alike. Recommendations included keeping annual licence fees reasonable and capping entry fees for Thai citizens between €27 and €54.
Promoting Responsible Gaming
1. Local Oversight Committees
To address social concerns regarding legalized gambling, participants recommended establishing local oversight committees. These bodies would ensure that casinos operate within legal and ethical guidelines, addressing issues like responsible gaming and gambling addiction.
2. Gaming Area Allocation
It was also proposed that only 5 to 20 percent of the Entertainment Complex space be allocated to gaming areas. This measure aims to provide a balanced entertainment experience while promoting responsible gambling practices.
3. Capital Reserves
Another recommendation involves requiring licence holders to maintain a minimum capital reserve. This reserve would ensure sufficient funds are available to honor player winnings, adding a layer of financial security.
Next Steps and Government Considerations
Following the public consultations, the recommendations have been forwarded to the Cabinet for further consideration. The government intends to refine the draft law based on these insights before advancing the legislation. The legalization of casinos in Thailand is anticipated to usher in a new revenue stream, driving economic growth and stimulating the tourism sector. Nevertheless, achieving a balance between economic opportunities and social responsibility is crucial. As the public consultation results demonstrate, the government must carefully weigh local interests against the influx of foreign investment to create a sustainable and inclusive casino industry in Thailand.
