The recent approval of the draft Entertainment Complex Act by the Cabinet has sparked widespread attention domestically and internationally. The government views it as a game changer, but critics warn potential risks may outweigh its benefits.

The Thai Cabinet on 13 January approved in principle the draft Entertainment Complex Act. The draft will be submitted to Parliament for further deliberation, which will take approximately 7-9 months.

Legalised casinos are not entirely new in Thailand, as casinos were allowed to operate legally before and during World War II but were later banned.

The entertainment complex is part of the ruling Pheu Thai party’s man-made attraction policy to rejuvenate the country’s economy in the belief that it would generate a large income, while a House of Representatives study stated that the Bill’s key objective is to curb illegal gambling.

Julapun Amornvivat, Deputy Finance Minister, said the entertainment complex model is successful in many countries, particularly in Singapore. He estimated that the entertainment complex would attract no less than 100 billion baht in investment and generate tourism revenue of between 120 billion and 240 billion baht annually. It was also expected to create 9,000 to 15,000 jobs and generate state revenue of no less than 12 billion to 40 billion baht.

Prime Minister Paetongtarn Shinawatra addressed concerns about the casino, saying that it would constitute only 10% of the entertainment complex, while the remainder would focus on tourism and other recreational activities, such as Muay Thai and cockfighting. She asserted that the entertainment complex will drive the country's growth and significantly increase GDP figures.

The entertainment business, according to the Act, consists of the following types of business: shopping malls, 6-star hotels, restaurants, nightclubs, sports complexes, yacht and cruising clubs, game centres, swimming pools and water parks, theme parks, OTOP stores, casinos, and other businesses as determined by the Entertainment Complex Policy Committee.

According to the draft, Thai nationals will be charged a 5,000 baht entrance fee to the casino, which is intended to limit local participants. It also states that casinos must operate in the permitted entertainment complex, with online casinos excluded.

The entertainment complex is expected to open in 2029, preceding a similar project in Osaka.

Who could invest in the entertainment complex?

The Deputy Finance Minister revealed that any company wishing to invest in an entertainment complex must be registered in Thailand, with no nationality restrictions. According to the draft, investors must have a registered capital of 10 billion baht. He said this is to ensure that only major players and serious investors are involved and to screen for those who are well-prepared, capable and experienced, with a previous background in this type of business.

He said an Entertainment Complex Policy Committee, consisting of the PM, Ministers, and other experts in various fields, will be established in the future and the law will be followed strictly and with transparency.

investors will be granted renewable a lease not exceeding 50 years. A license is valid for no more than 30 years, with an initial licence fee of 5 billion baht and 1 billion baht payable annually. In addition, performance reviews will be conducted every 5 years.

It was revealed that half a dozen foreign groups are interested in entertainment complexes, including casinos. These include Las Vegas Sands Corporation, Wynn Resorts, Caesars Entertainment, MGM China Holdings Limited, Hard Rock International, and Melco Resorts & Entertainment.

Las Vegas Sands Corporation was founded by Sheldon Adelson, a major campaign contributor to Donald Trump and other Republican politicians and a backer of Israeli Prime Minister Benjamin Netanyahu. It operates casinos and convention centres in the US and Macau and the Marina Bay Sands complex in Singapore. Wynn Resorts develops and operates hotels and casinos in the US, London and Macau. Caesars Entertainment owns and operates numerous casinos in the US. MGM China Holdings Limited, majority-owned by a daughter of the late Stanley Ho, has interests in hotels and casinos in Macau. Hard Rock International operates mostly restaurants and bars worldwide and casinos in the US. Melco Resorts & Entertainment, whose CEO is a son of Stanley Ho, owns integrated casino resorts in Macau, Manila, Cyprus and Sr Lanka.

Controversy over casino

While the government confidently sees the entertainment complex as an opportunity, believing it could help revitalise the country’s economy rather than yield negative impacts, opinions on this matter remained divided.

According to a poll conducted in 2021, approximately 47% opposed legalised casinos, citing concern over family conflict, debt, and crime, with some highlighting that Thailand is predominantly a Buddhist country. 21% supported legalised casinos, and 18% partially agreed with the idea.

Many commented that the legalisation of casinos must be approached with caution to prevent them from becoming hubs for money laundering, illegal and unethical activities and corruption. Critics also argue that legalising casinos would not eliminate illegal gambling in Thai society, but exacerbate the problem. Thailand also struggles with weak law enforcement.

Those comments align with the Council of State, which serves as an advisor to the government. The Council raised concerns that the Entertainment Complex Act could breach government policy and fail to curb illegal gambling.

The House of Representatives study notes that the project aims to tackle illegal gambling. However, the public understanding of an entertainment complex encompasses various recreational activities, not specifically designed for gambling. Entertainment complexes are already subject to regulation by existing laws. The Council of State said the draft does not clearly explain how it will curb illegal gambling, suggesting that amending the Gambling Act might be more effective, as the enforcement of current laws is the primary issue.

The government must be clear whether the Act is intended to promote man-made attractions or address illegal gambling, as the two goals require different approaches and mechanisms.

Meanwhile, MP Rangsiman Rome from the opposition People’s Party and Chair of the House Committee on National Security, Border Affairs, National Strategy and National Reform, argued that the country has recently run into problems with grey businesses, especially scam call centres and online gambling, which use Thailand as a hub for criminal activities. These groups might also invest in Thailand’s entertainment complex projects to launder money they obtained through scams and illegal activities, particularly when the government has no practical approaches to addressing these illegal businesses in the country.

He added that this large-scale project is relatively new for the Thai government. Without care, the initiative could result in more harm than good.

The Office of the National Economic and Social Development Council (NESDC) also expressed concerns, noting that casino businesses have several significant impacts, suggesting that investing in such a project requires robust safeguards and strict enforcement.

The NESDC also stated that casinos may not help boost the economy as anticipated, as gambling revenue is classified as a "transfer" and is not included in the calculation of economic value-added.