Thailand's finance ministry leads review of casino studies
Thailand's Finance Ministry will consider a House of Representatives study that could pave the way for regulated casinos in the Southeast Asian country.
The Finance Ministry is one of 17 government agencies involved in reviewing the feasibility of bringing casino gaming to Thailand. An "urgent letter" sent by the Cabinet Secretariat earlier this week said the Treasury had one month to submit a report on the casino issue to Cabinet.
Other government departments involved in the review include the Ministry of Tourism and Sports, the Ministry of Social Development and Human Security, the Ministry of Higher Education and Science, the Ministry of Research and Innovation, the Ministry of Agriculture and Cooperatives, the Ministry of Transport, the Ministry of Home Affairs, the Ministry of Justice, the Ministry of Labour, the Ministry of Culture , Ministry of Education, Ministry of Public Health and Industry.
In a vote in late March, Thailand's House of Representatives approved the idea of creating entertainment zones across the country, with 253 out of 257 members voting in favor of the measure, with some of the venues also expected to include casinos.
Thailand casino concept gaining momentum
The concept of making Thailand a home for regulated gambling venues has gained momentum this year, and with Deputy Finance Minister Julapun Amornvivat and Prime Minister Srettha Thavisin backing the effort, clearer regulation is likely to emerge in the coming months.
If the Cabinet Secretariat approves the findings of the 17 agencies, the country will establish a policy committee headed by Thavisin to study the possible economic impact of casinos and related issues. In addition, another committee composed of heads of various agencies will be formed to study various issues related to the entertainment zone, including gaming.
Thailand's efficiency in solving its casino woes could attract the attention of major global gaming companies and allow the country to open its first casino ahead of MGM Resorts International's (NYSE: MGM ) integrated resort in Osaka.The first Japanese casino hotel is scheduled to open in 2030.
Thailand has good reason to promote entertainment areas. Each venue would require a capital commitment of $2.75 billion, a boon to state coffers. Additionally, gambling-loving Thais continue to travel to neighboring Myanmar to place bets, even though the country is in the midst of a civil war. Some policymakers hope that by bringing casinos to Thailand, locals will minimize gambling-related travel to other countries.
More Thai Casino Chat
The House-approved study, which is currently under review by the Treasury Department and 16 other agencies, also calls for a 17% tax rate, which is likely to be welcomed by the gaming industry. The report also suggests that gambling venues can increase Thailand’s GDP by up to 1.16% per year.
There are also predictions that entertainment zones including casinos could lead to a 52% increase in international tourism in Thailand, a country that relies heavily on foreign tourists to drive economic growth.
Maybank analysts recently estimated that the country could approve as many as eight gaming licenses, with hopes that some of the largest Asian and US operators will bid for them.
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Source: www.casino.org
