Thailand is the latest country to begin the process of installing a framework for the licensing and regulation of online gambling. News of the decision to legalise gambling has caught the attention of Japan and China, with operators in both regions reportedly planning to pursue a license once they become available.

 Gambling as a Tourist Trap

Much like the Philippines, Thailand is looking to use a licensed gambling industry as a springboard for expanding its tourist potential. A key part of this strategy to increase the country’s tourist appeal and monetise its visitors is the establishment of several integrated casino resorts (IR).

Several Thai ministries compiled a report on the design of the resorts. The final product consisted of casino floors, entertainment venues, theme parks, high-end shopping districts, and hotels, costing around $2.7 billion per IR. Despite the heavy creation price, the report predicts that each resort complex would create much-needed jobs and generate as much as $1.4 billion in annual revenue.

In terms of the draw of licensed gambling venues, they are predicted to add as much as $12 billion annually to the tourist industry, plus see each visitor spend an additional $1,800 per trip.

 Robust Casino Licensing Fees

New operators looking to get in on the ground floor have already been dissuaded of the idea that a Thai gambling license will be cheap to acquire. While the proposed framework allows for 30-year license agreements, the application fee will be about $3,000, and a fixed fee of $142 million will be charged should the initial license be granted. This fixed fee will also apply to license holders who have reached the end of their term and choose to renew their license.

The annual fees for casino operators are set at $28.4 million but could be amended to include a revenue percentage as the Gambling Act is updated as part of the government’s review process.

An unusual stipulation of the Gambling Act requires Thai citizens to pay an entry fee when visiting the resorts. The current stipulation sets this fee at $142 per person per visit. With lower-income earners in the country taking home around $750 per month, this makes enjoying the attractions on offer a new impossibility.

 Licensed Online Gambling Soon?

A sign that the Thai government is moving ahead with their plans for supporting a locally licensed gambling industry was a black market casino shutdown operation called ‘Zero Bet’. In total, the initiative led to the seizure of cash and assets worth over $1.8 million.

Historically, a hard push to shut down unlicensed online casinos that are illegally targeting a country is taken just before the region regulation to ensure that predatory operators do not coopt the uptake in gambling interest.

While the project timelines have claimed 2029 to be the go-live date for the launch of casinos in the region, online casinos could be licensed much sooner and become a source of funds for the development of integrated casino resorts.