Momentum for casino legalization appears to be building in Thailand. Legislators in the nation’s House of Representatives gathered on 28 March to vote on a study that would potentially pave the way for legalized casino betting in ‘The Land of Smiles.’ The study, commissioned by the Thai parliament in 2023, was the basis of the tabled study.

Out of 257 House members present in the meeting, 253 voted for the proposal, indicating overwhelming support for legalization. This also means that the legislation can move forward to the national cabinet where a draft bill could make it to law if approved. The landside support signaled by the vote has been echoed in higher offices, pointing to a short period before the legislation is actually passed.

Legalized Casinos to Bolster Economic Growth

One of the biggest challenges for jurisdictions with unregulated betting markets is the casino black market, which has always thrived despite strict measures to curb it. Thailand is no stranger to illicit gambling businesses, which continue to collect billions in revenue without the possibility of benefiting the country’s economy. The only forms of legalized betting currently allowed in Thailand are the Lottery and state-controlled horse races, constituting a smaller fraction of the overall gambling industry in any market.

According to industry experts, Thailand’s economy is pegged on the tourism and hospitality sectors. If casino gambling is introduced in entertainment complexes, it would significantly boost revenues in the future. However, the proposal is limited to in-person gaming as the government has pointed out player protection risks associated with online gambling, which it is reluctant to deal with at the moment. The entertainment complex model is inspired by Singapore, which allows casino betting alongside more wholesome entertainment options like concerts and sports events.

Deputy Finance Minister Julapun Amornvivat reported that it was high time the government reconsidered its position on legalized gambling. He reiterated that the illegal sector remains profitable for illicit operators, depriving the country of legit revenue that could be made possible by the delay in establishing a regulated market. Amornvivat stated.

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“We have to admit that there is illegal gambling in the country, we are trying to get rid of (it), but it cannot be wiped out, so we have to rethink and see that it is time for this.”

The initial approval by the House has been backed by Prime Minister Srettha Thavisin, who has lauded the initiative as a step in the right direction. He highlighted some of the positive outcomes that would be expected once casino betting is legal in Thailand. For instance, he emphasized the need to move fast in decision-making so that the country does not continue to miss out on the opportunity to rake in a stable income from having a legalized gambling market. Srettha noted in a post on Elon Musk’s social media platform X:

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“The entertainment complexes will enhance the country’s tourism industry,… in the past, we have wasted enough time and opportunity. The government will reclaim the lost time and turn it into an economic opportunity for the country and its citizens.”

Cross-border Betting a Norm in Southeast Asia

For residents looking to participate in legalized gambling, the only option has been to visit neighboring Southeast Asian countries like Myanmar and Cambodia, which have casinos located near the borders to facilitate cross-border gambling.

If a regulated gambling market were to be brought to Thailand, the country would be in a position to attract local players as well as international tourists. This is especially the case for Chinese gamblers, who are famous for spending huge on gaming and are also known to cross borders in order to gamble legally. That’s because the only place Chinese nationals can do so in their country is the Macau SAR.

As it stands, the Southeast Asian gambling landscape could prove profitable for Thailand if the initiative were to be a success. Gambling advocates in the region have argued that regulated gambling facilities could create thousands of jobs, generate substantial tax revenue, and attract high-spending tourists. Another neighbor that has signaled intent to implement a regulated betting industry is Japan, whose first casino resort (hosted by MGM Osaka) is scheduled to open its doors in 2030.

This means that Thailand may beat Japan to the chase as Maybank Investment Bank estimates the first entertainment complexes with legalized casinos may be open by 2029. In addition, as Japan awaits the construction of its $8.1 billion integrated resort in Yumeshima, it only has one licensed operator. On the other hand, Thailand would approve between 5 and 8 20-year licenses as soon as the national cabinet gives the go-ahead for a regulated casino industry.

Legalization Efforts Not Successful in the Past

While the current situation seems promising for proponents of a regulated casino and sports betting industry, any attempts to legalize betting in the country have been vehemently opposed by the Buddhist community and Conservatives. The parties have often cited concerns over the morality of gambling activities as well as increased crime rates as reasons to stop any such efforts.

To promote responsible gambling, the study recommends an entry levy for casino players and provisions for casino prohibitions initiated by court orders or requests by family members. According to an opinion poll held in 2021, an overwhelming 47% of respondents were against legalizing betting, while 21% and 18% were supportive and partially supportive, respectively.

The apparent change in tune from the government has been fuelled by the global economic downturn caused by the COVID-19 pandemic, which has forced countries to seek innovative ways to revive their economies. This is why, despite the contentious nature of the issue, there is a renewed openness to the idea, which, in the interim, remains in the hands of the national cabinet.