Thailand Casino and Gambling Law Approved as Draft

Regulated gambling markets are popping up all over the world, and the industry appears to be going through a boom time of legalisation. This month, the government in Thailand approved a draft version of a law to legalise gambling and casinos in the country. Let’s take a look at this Thailand casino and gambling law in more detail and discuss what it means for Thailand and the wider gambling industry.

A History of Gambling in Thailand

Thailand has had something of a love-hate relationship with gambling over the years. In the late 19th and early 20th centuries, gambling was incredibly popular among citizens and tourists alike. However, in 1935 Thailand passed the Gambling Act, which outlawed all forms of gambling except horserace betting and the state lottery.

Since then, Thai authorities have struggled to stamp out black market gambling activities, which are often associated with other forms of organised crime.

In recent years, calls to regulated gambling in Thailand have steadily increased. Supporters highlighted the revenue potential it could bring, as well as the negative effect it would have on the black market.

It would appear that the government have heard these calls, and a draft Thailand casino and gambling law has been approved by the cabinet.

The Details of the Bill

The Thailand casino and gambling law, officially known as the Integrated Entertainment Business Act, is planned legislation that will allow for the operation of casinos in Thailand for the first time in nine decades.

However, the bill states that these casinos will only be permitted if they are part of an integrated resort. These include things like hotels, stadiums and theme parks. An important detail specified in the legislation is that these casinos will only be permitted if they occupy no more than 5% of the attached resort’s total area.

Some details regarding licensing have also been outlined in the bill. The proposal states that licences will be distributed on 30-year terms, with reviews every 10 years. To obtain a licence, operators must be registered in Thailand and hold capital of at least $288 million. Licences will incur an initial cost of $144 million as well as annual fees of $29 million. Five initial licences are expected to be granted.

Furthermore, the Thailand casino and gambling law will see the introduction of a 17% GGR tax levy.

What Happens Next?

Supporters of a regulated gambling market in Thailand hope the legislation will enhance the country’s economy and create new state revenue streams. Some forecasts predict casinos could boost tourism numbers by as much as 10% and create up to 15,000 jobs.

In addition, a regulated market will be effective in stamping out black market activities, which have plagued Thailand for decades.

However, before Thailand can reap the benefits of a regulated gambling market, the bill must first pass through the country’s parliament. Before it can be enshrined in law, it must be approved by the country’s house of representatives and senate.

If there are no delays, some predict the bill could pass by the middle of the year. A regulated gambling market in Thailand would be big news for the industry, so this situation is worth watching closely.

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