Thailand is betting big on the casino industry
On January 2025, the Thai government approved the Entertainment Complex Bill from the Ministry of Finance that legalizes casino operations in the country. Gambling has long been prohibited in Thailand, and the measure received pushback from the general public as discussions were ongoing. The gambling business appears incompatible to Thai culture, which is largely rooted in Buddhist values.
This is not the first time Thailand has attempted to open up to casino operations. In 1945, the government revived the Gambling Act of 1935 in the hopes of revitalizing the country’s economy. At the time, the industry generated THB 24.13 million (USD 730,000). However, the plan was short-lived, lasting only less than three months as authorities regarded the negative impact of gambling on its society. Once again, the Thai government is looking towards the casino industry to boost economic activity amid a slowdown. Will history repeat itself?
High-stakes play
One must consider that the new bill is coming into effect under a different environment than in 1945. Thailand’s objective during that time was to generate short-term revenue boost in response to wartime inflation. Adding the inadequate supervision by the government and the detrimental effect of gambling to citizens, Thailand opted to shut down its casino operation.
When Paetongtarn Shinawatra was sworn in as Prime Minister in 2024, she and her Cabinet planned to forge ahead with the Entertainment Complex Bill despite criticisms from both political opponents and the greater public. In an initial poll from the National Institute of Development Administration, 59.19 per cent of 1,310 respondents opposed the plan to create entertainment complexes home to casinos and gaming tables. Thai officials are looking to reverse this sentiment.
As an assurance, Paetongtarn stated that this measure will have proper regulation and will follow Singapore’s successful casino model. One restriction is that casino spaces are limited to 10 per cent of the floor area of an entertainment complex to dissuade the creation of standalone gambling hubs. The second draft of the bill also limits access to gambling facilities: Casinos in Thailand will impose an entry fee of THB 5,000 (USD 147) and will require Thai patrons to have at least around THB 50 million (USD 1.4 million) in a fixed deposit account for six months. These latest additions to the new bill have been met positively.
Currently, illegal gambling activities within Thailand are estimated to be worth THB 1.1 trillion (USD 33 million) a year – revenue which the government can benefit from by way of taxes if the new bill pushes through. Some reports even state that Thailand can potentially surpass Singapore’s casino revenue. According to Maybank Securities, Thailand’s projected gaming revenue stands at USD 8.39 billion annually if the country starts to operate casinos and, as shown in Graph 1, may even emerge as the third largest casino industry globally after Macau and Las Vegas in the US.
Enacting the new bill into law means casino operations can contribute 0.7 per cent to Thailand’s GDP and create jobs more than 70,000 jobs, generating a total income of THB 106 billion (USD 3.16 billion). If Thailand can emulate the success of the gaming hubs in Singapore and Las Vegas in the US, it will open more economic opportunities. In fact, Thai Chamber of Commerce sees the casino industry as a way to boost Thailand’s tourism revenues, adding to the country’s allure as a tourist destination.
Tourism boost
Graph 2 shows Thailand tallied 35 million foreign tourists in 2024, a record high in the post-pandemic era. The Tourism Authority of Thailand expects tourist arrivals to reach 38 million this year and bring in revenues of THB 2 trillion (USD 60 billion).
If casinos get legalised, it could potentially yield substantial profits of THB 120 billion (USD 3.58 billion) to THB 240 billion (USD 7.16 billion) that would support the Thai economy. Unlike local citizens, foreigners would have free access to enter the new casinos in the hopes of boosting tourist arrivals by 5 to 10 per cent more. The Thai government is also drawing inspiration from its neighbours in fully integrating casinos with leisure resorts. Strategically, the country has chosen four major tourist areas –Bangkok, Chonburi, Chiang Mai, and Phuket – to host casino centres in its entertainment complexes.
This early, the move to set up casinos in these areas have attracted attention from foreign investors such as the Macau-based Galaxy Entertainment Group, and has translated to lucrative profits. With these entertainment complexes and casinos, the Thai government hopes to attract at least THB 100 billion (USD 3 billion) in new investments.
The addition of casinos and entertainment resorts may provide a much-needed boost to Thailand’s economy, especially at a time of a slowdown in domestic consumption. This also adds reasons for foreign travellers to visit Thailand, complementing tourism receipts and generating additional revenues for the economy.
This original article has been produced in-house for Lundgreen’s Investor Insights by on-the-ground contributors of the region. The insight provided is informed with accurate data from reliable sources and has gone through various processes to ensure that the information upholds the integrity and values of the Lundgreen’s brand.
