Tourism boom vs gambling havoc: What’s at stake in Thailand’s casino bet?

The Entertainment Complex Bill, which seeks to legalise casinos in Thailand, is set to be forwarded for debate in Parliament despite growing concerns over its many perceived flaws.

Endorsed by the Cabinet last month and now being reviewed by the Council of State, the bill is expected to enter Parliament in the next few weeks.

“The government is promoting the development of entertainment complexes, using a model similar to the Eastern Economic Corridor [EEC], to elevate Thailand as a global destination,” explained Prommin Lertsuridej, the PM’s secretary-general.

Parliament is expected to take around nine months to deliberate the bill. Its passage will pave the way for casinos to operate on Thai soil as part of entertainment complexes that must also feature at least four other businesses.

These include hotels, restaurants, night clubs, stadiums, gaming arcades, water parks or swimming pools, amusement parks, and outlets promoting Thai culture or goods.

Flaws in the fine print

Thanakorn Komkris, secretary-general of the Stop Gambling Foundation, said he had noticed several glaring loopholes while examining the Entertainment Complex Bill.

“The bill does not specify the size of the casino in an entertainment complex,” he pointed out.

He was concerned over reports that the phrase “five-star” had deliberately been removed from the bill’s clauses on hotels, and “comprehensive” from those on department stores.

Thanakorn worries that the bill will also grant excessive power to the Entertainment Complex Policy Committee, chaired by the prime minister.

“I must emphasise that this committee would be empowered to grant licences to operate entertainment complexes to any operator it chooses, without requiring a bidding process,” he said, sharing his interpretation.

He added that although the bill sets a maximum licence fee of 5 billion baht and an annual renewal fee 1 billion baht for entertainment complex operators, it does not specify the minimum fees.

“This also applies to the clause on the entry fee that Thais will have to pay. It mentions a maximum fee of 5,000 baht but says nothing about a minimum fee,” he said.

Thanakorn also highlighted Article 21, which lays out rules concerning tax revenue from casinos. The final paragraph of Article 21 allows the Office of Entertainment Complexes to submit “revenue after expenses” to the Treasury – instead of setting a clear percentage of revenue that must be contributed to state coffers.

This contravenes the rule already in place for the state lottery, he said.

“The government lottery law clearly states that 23% of lotto revenue must go to the state,” he pointed out.

Opposition calls for limits, transparency

MP Chulapong Yukate of the opposition-leading People’s Party warned the bill lacks safeguards to prevent a boom in casinos and gambling.

He said the bill should specify the percentage of space a casino can occupy in an entertainment complex, adding: “If the government claims it aims to boost tourism, it should ensure that the focus of entertainment complexes is not mainly on gambling.”

He also called for a limit on the number of casinos in Thailand to prevent entertainment complexes from mushrooming across the country.

“Singapore allows only two casinos to operate on its soil,” he pointed out.

The People’s Party has called for amendments to the Entertainment Complex Bill to increase transparency – including public disclosure of the bidding process, criteria and results related to entertainment complex operators. It cites concerns about potential corruption and the need for public trust in the selection process for casino resort operators.

The party proposes that before opening any entertainment complex, a public referendum should be held to determine if locals support the idea.

It also recommended adding minimum income, in addition the minimum age, to eligibility rules for casino entry.

Chulapong emphasised that the Entertainment Complex Bill must include measures that prevent corruption and money laundering, promote income generation for local communities and the government, and curb unwanted impacts from casino resorts.

Expert opinion

Assoc Prof Nualnoi Treerat, who heads the Center for Gambling Studies at Chulalongkorn University’s Faculty of Economics, said most countries with casinos had clear measures in place to reduce the social impacts.

She echoed Thanakorn’s concern that the bill granted too much power to the Entertainment Complex Policy panel.

“If our law hands such powers to a specific committee, there is no assurance that entertainment complexes will deliver optimum benefits along with minimum undesirable impacts.”

Nualnoi cautioned that vulnerable people could fall prey to gambling habits once casinos opened in Thailand. She also highlighted that casinos are frequently used for money laundering and called for strict measures to be in place from the start.

“If we ignore these issues, the situation may get out of control in the future,” she warned.

Govt eyeing tourism jackpot

Prommin, the PM’s secretary-general, argues that the bill is not focused on gambling but on creating integrated entertainment complexes designed to attract families.

“Casinos will simply be one part of these complexes. Look at the successful models in Singapore, Macau and Las Vegas,” he said.

Deputy Finance Minister Julapun Amornvivat said the government had not specified the percentage of space taken up by casinos in the draft bill, as it wanted to avoid dictating the law’s future enforcement.

“The space occupied by casinos may be just 5 to 10 percent – or as little as 1 percent,” he said. “But if you want us to put a ceiling on it, we should be able to do that.”

He maintained that the bill includes sufficient rules to ensure entertainment complexes are tightly regulated. Measures will be introduced to prevent money laundering and promote responsible gaming, he added.

Public ‘unconvinced’

Thanakorn said that while the government had downplayed the potential impacts of entertainment complexes, the public remained convinced.

“We are worried about the long-term effects” he said. “This is a big deal.”

He warned that if the Entertainment Complex Bill in its current form was passed by Parliament, there would be nothing to prevent casinos from popping up all over Thailand.

He added that 50,000 signatures were being gathered for a petition to trigger a public referendum on the launch of any casino.

“We oppose the opening of casinos, so we won’t propose any related draft law,” he said. “Instead, we will push for the public referendum.”