Thailand publishes draft casino legalization bill, reveals regulatory structure

The Thai government has published a draft bill aimed at regulating the country’s casino industry.with the establishment of a central regulatory authority headquartered in Bangkok and with branches strategically placed across the country.

The 22-page draft bill was made public by the State Council of Thailand and is open for public consultation until August 18.The bill envisages the establishment of a Policy Committee chaired by the Prime Minister and assisted by an Executive Committee tasked with managing the budget and staffing of the regulatory body.

The draft law sets out a detailed structure for the regulation of integrated entertainment facilities, including casinos. The main regulatory body headquartered in Bangkok will have branches or representatives across the country, depending on needsThe stated mission of this body is to “regulate, supervise, control, promote and support integrated entertainment venues in accordance with” the Act.

The Policy Committee, chaired by the Prime Minister, will oversee the formulation of key casino policies. These policies include management guidelines, licensing, tax rates, permitted types of activities, entry fees, staff criteria, management criteria and permitted casino space.

The Deputy Prime Minister will serve as Vice Chairman and nine senior government officials will serve as DirectorsThe commission included the ministers of finance, tourism, social development, trade, home affairs, justice, the Royal Thai Police and the National Defence Commission, as well as the Secretary General of the Board of Investment.

The Prime Minister will appoint six members of the expert committee, who must be Thai citizens, over 35 years of age and have specialist knowledge in economics.business administration, law, or social sciences. These members cannot be current government officials or employees of a government agency and cannot have a criminal record or history of political office.

The Executive Committee, chaired by a person appointed by the Prime Minister, will consist of nine permanent secretaries from the above-mentioned ministries and departmentsplus three experts, also appointed by the Prime Minister. This committee will look at the budget and staffing needs of the regulatory body.

Gambling industry set to boost Thai tourism sector

License holders will be granted an initial 30-year license period, renewable every five years with the possibility of an additional 10-year extensionThe draft law lists 10 types of businesses that can be part of integrated entertainment venues in Thailand, including department stores, hotels, restaurants, nightclubs, stadiums, yacht clubs, gaming facilities, swimming pools, amusement parks, cultural promotion areas and other businesses as determined by the Policy Committee.

Studies predict that liberalizing the gaming industry could increase Thailand’s tourism revenue by $12 billionPotential locations for these entertainment complexes include Greater Bangkok, Phuket, Chiang Mai and Chonburi (Pattaya), all within 100 kilometres of major airports. The required paid-in capital for these complexes was set at USD 283 million..

Major international casino operators such as Galaxy Entertainment Group, MGM Resorts and Las Vegas Sands have already expressed interest in entering the Thai market. The bill includes a 17 percent tax on gross gaming revenue (GGR), similar to previous signals, and a “reasonable” entry fee for Thai nationals, similar to the model in place in Singapore.

The bill also specifies that integrated centres must include at least four entertainment businesses, such as a restaurant, amusement park, department store or cultural promotion area. Currently, legal gambling in Thailand is limited to state-controlled horse racing and lotteries, but illegal gambling is still common.

Once the draft is approved by the Council of Ministers, it will be debated and possibly amended in Parliament. The Policy Committee, chaired by Prime Minister Srettha Thavisin, will oversee the development and implementation of the regulations. Day-to-day operations will be managed by a new government body, the Comprehensive Entertainment Commission.

Operators will face financial obligations, including an initial license fee of 5 billion baht ($141.9 million), an application fee of 100,000 baht and an annual fee of 1 billion baht. Thai citizens will have to pay a fee of 5,000 baht for each entry to the casino.