Thailand lawmakers are now reviewing a bill to introduce legal casinos inside integrated resort (IR) complexes that also include luxury hotels, theme parks, conference centres and convention halls.
As originally proposed, the Thailand Entertainment Complex bill would cap casino size at 5% of gross floor area. Now, to the alarm of anti-casino lobbyists, the finance ministry wants to double it to 10%.
The legislation was introduced under former prime minister Srettha Thavisin and is supported by his successor, Paetongtarn Shinawatra. It is based on the premise that legal casino resorts would boost the post-Covid economy and increase global tourism. It would also tax and regulate an industry that already flourishes, reclaiming revenue that now goes offshore or underground.
But critics say lawmakers are too focused on gambling for the industry’s success.
Policymakers, poll respondents weigh in
On 13 January, cabinet members approved the bill on principle. It then went before the Council of State. The government advisory body has 50 days to complete and submit its own review.
But even before the finance ministry suggested the larger casino size, council members had problems with the bill. They said it emphasises gaming above non-gaming attractions and no longer requires luxury appointments to appeal to tourists.
According to the Bangkok Post, the Palang Pracharath Party also says it will vote no on the bill, fearing the new industry could contribute to gambling addiction and personal debt.
Moreover, a new poll showed that 59% of residents strongly oppose casino complexes. The opposition is even stronger when it comes to legal online gaming, with 70% turning thumbs down.
Departing from the Singapore model
Thai lawmakers first said they would follow the Singapore model, with casinos just a small part of expansive, family-friendly integrated resorts (IRs).
Singapore’s two casinos, at Resorts World Sentosa (RWS) and Marina Bay Sands (MBS), occupy less than 5% of total space. Yet they reap the lion’s share of total revenue. In 2022, MBS saw a ratio of 63.9% gaming to 36.1% nongaming. At RWS, it was 72% gaming to 28% nongaming.
And there is no disputing the IRs’ success as entertainment destinations. According to the Korea Times, in 2023, 48% of 13.6 million international travellers to Singapore visited the resorts. Since their opening in 2010, MBS and RWS have become the most-visited paid tourism attractions in the republic.
Building in preventive measures
As in Thailand, Singaporeans at first resisted casinos, fearing adverse social costs. To address these concerns, the government established a S$150 (£91/€108/$113) entry fee for locals to discourage excessive gambling. It also worked with the US-based National Council on Problem Gambling (NCPG) on public awareness campaigns and built in counselling and rehabilitation services for problem gamblers.
In 2020, according to NCPG research, between 0.6% and 1.5% of self-reporting gamblers in Singapore could be classified as problem gamblers (the rate is 1% to 2% in the US).
“In the end, it was a matter of weighing the economic benefits versus the likely social damage,” Singapore industry consultant Christopher Khoo told the Times. “If a renewed question were to be brought up today, there would be much less vocal resistance [to casinos]. The population of Singapore has seen that the introduction of casinos has indeed brought tangible and visible economic benefits.
“And while there may have been some social repercussions, they have actually been by and large very muted.”
Japan faces same considerations
In 2023, Japan, like Thailand a socially conservative country, approved its first multibillion-dollar casino resort.
MGM Osaka, too, is expected to boost international tourism and create new jobs. When the project was officially approved, Osaka governor Hirofumi Yoshimura told the Japan News he would “put thorough countermeasures with the intention of even reducing gambling addictions from the level they are now”.
For one thing, Japan has limited casino space to just 3% of gross floor area. But the nascent jurisdiction, set to open in 2030, is still expected to generate JPY520 billion in annual revenue, mostly from the gaming side.
According to Reuters, developers MGM Resorts and Japan’s Orix Corporation say the IR will attract six million international tourists and 14 million domestic visitors.
Original article: https://igamingbusiness.com/uncategorized/does-thailand-need-to-double-proposed-casino-size/
