The Thai Ministry of Finance has released a comprehensive report detailing the results of the public consultation on the draft "Integrated Resort Act," which is expected to pave the way for the introduction of casinos in Thailand. The public consultation took place from August 2 to August 18, 2024, gathering opinions from government agencies, private sector representatives, and the public. The government plans to launch entertainment complexes—casinos nationwide to boost economic growth.
The results of the public consultation show that respondents are particularly concerned about protecting the future industry from foreign dominance and creating a fair and competitive market environment. They also emphasized the importance of ensuring player safety, including the financial stability of operators and the implementation of responsible gambling measures. Moreover, it is widely believed that this emerging industry should benefit the whole of Thai society, rather than being concentrated in specific areas.
Industry Designed for National Interest
– Minimum Thai Shareholding: The most important recommendation is that at least 30% to 50% of the shares in casino operations should be held by Thai citizens to encourage local investment and reduce the risk of foreign dominance in the industry.
– Licensing and Lease Duration: The draft currently suggests a licensing period of 30 years. Some participants believe this period is too long and should be shortened to 10 years; others think it should be extended considering the investment needs of operators. There is also a strong suggestion not to allow foreigners to lease or own land in casino operations for more than 25 years to ensure control over local assets.
– Location of Entertainment Complexes: These complexes should not be limited to Bangkok but should also be strategically located in tourist hotspots such as Phuket, Chiang Mai, and Hua Hin to promote regional development and tourism.
– Licensing Process: Participants in the public consultation emphasized that the licensing process should be transparent and fair. It is generally believed that foreign investors should be allowed to participate in the bidding to promote healthy competition.
– Limit on the Number of Licenses: It is suggested that the number of licenses be limited, with a final recommendation of 3 to 7 licenses. Specific allocations for different regions were also discussed, suggesting 2 to 3 licenses for Bangkok and 5 to 7 for other provinces.
– Fee Structure: Concerns were raised about high licensing and entry fees proposals, which could hinder the participation of potential operators and players. It is suggested that the annual licensing fee be set at a reasonable level, and the entry fee cap for Thai citizens be set between 27 to 54 euros.
Responsible Gambling
– Local Oversight Committees: Participants also expressed concerns about the social impacts of legalizing gambling, calling for comprehensive measures to address responsible gambling and potential addiction issues. It is suggested to establish local oversight committees to ensure that casinos operate within legal and ethical frameworks.
– Gaming Area Zoning: Stakeholders called for clearer regulations on the gaming areas within the complexes, suggesting that they should occupy 5-20% of the total area to ensure a balanced entertainment content and promote responsible gambling practices.
– Capital Reserves: It is recommended that license holders maintain a minimum capital reserve to ensure funds are available to pay players' winnings.
Next Steps
The suggestions from the public consultation have been compiled and submitted to the cabinet for further deliberation. The government plans to revise the draft based on these opinions and then proceed with the legislative process.
