The Thailand Cabinet, amid resistance from the Council of State, has approved a measure to legalize casinos in the country.
Thailand’s cabinet has taken a step toward legalising gambling and casinos, with the approval of a draft law that could push the project over the finish line.
Prime Minister Paetongtarn Shinawatra announced the development today (13 January), marking a potential shift in Thailand’s historically restrictive stance on gambling.
The draft legislation, which will now be presented to parliament for deliberation, outlines a plan to permit gambling within large-scale entertainment complexes.
The gambling properties are expected to serve as hubs for tourism and investment, aiming to rival similar developments in neighbouring countries such as Cambodia, Singapore, the Philippines, Laos, and Myanmar.
These countries have benefited significantly from legal casino operations, capitalising on both domestic and international tourism markets. Thailand could be next, shifting the gambling focus in the region.
Gambling in Thailand is currently tightly regulated, with most forms of wagering prohibited. The exceptions include state-controlled lotteries and horse race betting.
Despite these restrictions, underground gambling operations and informal soccer betting are widespread, involving substantial financial transactions outside the purview of legal oversight.
By legalising casinos, the government hopes to curb illegal gambling activities while unlocking new streams of revenue.
Thailand’s Finance Ministry estimates that the legalisation of gambling could generate an additional 120bn to 220bn baht (€3.38bn-€6.19bn) in tourism revenue.
Deputy Finance Minister Julapun Amornvivat projected a 5% to 10% increase in foreign visitor numbers following the law’s implementation, with the potential to create 9,000 to 15,000 new jobs.
Renewed criticism emerges from Council of State
Efforts to legalise gambling in Thailand are not new, with successive governments having faced resistance from conservative groups and segments of the predominantly Buddhist population.
Critics argue that legalising casinos could lead to social issues, including increased gambling addiction and financial distress among vulnerable groups.
According to the Bangkok Post, the Council of State, Thailand’s advisory body on legal matters, raised concerns over the weekend about the scope and focus of the proposed legislation.
Secretary General Pakorn Nilpraphan suggested that the law should align more closely with broader government policies aimed at creating “man-made destinations” such as theme parks and entertainment complexes.
Pakorn emphasised that the bill should clarify whether its primary objective is to address gambling problems or to develop tourism-centric attractions.
According to Pakorn, if the focus is on developing man-made destinations, gambling should constitute only a minor component of the entertainment complexes.
He also noted that existing gambling laws already regulate public behaviour toward gambling, indicating that the new legislation should concentrate on tourism development rather than directly addressing gambling issues.
More approvals needed
Tourism remains a cornerstone of Thailand’s economy, contributing significantly to the country’s GDP. The government anticipates record-breaking tourist arrivals in the coming years, making the legalisation of casinos a timely initiative to enhance the sector’s growth.
Proponents of the legislation argue that Thailand has long been missing out on the economic benefits of legalised gambling, which neighbouring countries have effectively harnessed.
Former Prime Minister Thaksin Shinawatra, a key advocate for legalising gambling and the father of the current Prime Minister, has also supported the initiative. His influence within the ruling party underpins the political backing for the draft law.
The draft legislation will now undergo parliamentary review, where lawmakers will deliberate on its provisions and address concerns raised by the Council of State. The government has indicated a willingness to revise the bill to ensure it aligns with its broader policy goals.