The legalization of casino & online gambling: a new era in Thailand’s entertainment landscape

Thailand is on the brink of a significant transformation in its entertainment and tourism sectors, with the decision to give serious consideration to the legalization of casinos marking a pivotal moment. This development is part of a broader strategy to position Thailand as a premier destination for large-scale entertainment projects to attract global tourists and boost its economy. The journey towards this milestone has so far progressed well, and recent developments suggest that the country is closer than ever to realizing this vision.

A thriving Asian entertainment hub

Thailand has already made substantial strides in the entertainment industry. The country has become a sought-after filming location for major Hollywood productions, including the highly anticipated third season of “The White Lotus.” Additionally, a landmark deal with Universal Studios, NEON, and Asset World Corp has paved the way for a US$35 million Jurassic World theme park in Bangkok. The Thai movie and pop industry has also gained much traction internationally in recent years, while its culinary and nightlife offerings are legendary. These developments underscore Thailand’s potential to become an ever more popular entertainment tourism hotspot.

The legislative journey

The path to legalizing casinos in Thailand saw some initial challenges and debates, but the recent approval of the Entertainment Complex Bill (the Bill) by the Thai Cabinet in January 2025 marks a significant step forward. Former Prime Minister Thaksin Shinawatra, father of the current Prime Minister Paetongtarn Shinawatra, has openly supported the Bill, stating during a recent provincial election campaign that the legislation should be finalized by the end of this year. The Bill under review by the Council of State was released on 28th of February 2025. While much of its content remains unchanged, it features a significant amendment that could potentially drive away international investors. We will delve deeper into this development in the next section. The Bill is now expected to proceed to its first reading in the House of Representatives, likely in March 2025.

The legislative process involves several critical stages, including a detailed examination by an appointed committee during the Bill’s second reading. This stage is expected to last two to three months, with the final vote in the Lower House projected for June or July this year. If approved, the Bill will then move to the Senate, which will have 60 days to review and propose amendments. The final step involves royal assent, with the king having 90 days to approve or reject the bill. If all goes according to plan, the law could take effect between January and March 2026. This will then see the establishment of the Entertainment Complex Committee, laying the groundwork for the licence bidding process.

Public concerns and scrutiny

While the Entertainment Complex Bill initially enjoyed broad support, public sentiment has shifted as more details have emerged. One of the most contentious issues is the designated area for casinos. Early proposals suggested limiting casino space to five percent of the total entertainment complex, but the Council of State recently sought to have this figure increased to 10 percent instead. This has sparked concerns, especially when compared to Singapore’s Marina Bay Sands, where casino operations occupy just three percent of the total integrated resort area.

A January 2025 poll by the National Institute of Development Administration found that 59.16 percent of respondents opposed the entertainment complex and casino project. Although the survey sample was small, it indicates growing public concern. Thailand’s legal framework allows citizens to submit public petitions to repeal or amend laws, provided they gather at least 10,000 signatures from eligible voters. However, Parliament has the authority to reject such petitions after deliberation.

New changes to the Entertainment Complex Bill proposed by the Council of State

One of the most significant changes to be made to the proposed law is found in Section 81, which sets out the criteria for Thai nationals permitted to enter casinos. Under this provision, such individuals must have maintained a deposit account balance of at least 50 million baht (approximately US$1.5 million) over the preceeding six months.

Although allowing Thai nationals to access casinos is not the primary objective of legalizing entertainment complexes, the importance of the local market from a business perspective cannot be overlooked. Local patrons provide a steady stream of revenue. The recent pandemic and closure of international borders provide useful lessons to businesses who are wholly reliant on tourist patronage. A regular flow of local patrons can help support more stable employment opportunities within the casino and related industries, as spending by local patrons (not just in the casino but also in other businesses in the entertainment complex such as restaurants, hotels and retail stores) can have a significant positive impact on the local economy. Having local patrons can also help integrate the casino into the local culture, making it a part of the social fabric and reducing potential resistance from the community. Singapore has provided a fine example of how to successfully balance revenue from both local and international visitors.

Deputy Finance Minister Julapun Amornvivat has voiced concerns that this provision may conflict with the government’s efforts to eliminate illegal gambling, noting that approximately 10,000 accounts meet the proposed financial criteria. Additionally, this measure could hinder efforts to deter Thai citizens from gambling at casinos along the borders of neighboring countries. Already, the entrance fee for Thai citizens to access a casino is currently set at 5,000 Thai Baht (approximately US$150), which exceeds the entry fee for Singaporeans in Singapore at US$115. Given the significant disparity in income per capita between the two countries, such an entry levy would act as a significant deterrent against less financially well-off local patrons from visiting legalized casinos in Thailand.

Despite these concerns, the Bill is expected to proceed to the cabinet for its first reading. Any amendments to this provision will likely need to be addressed by the appointed committee during the legislative process. Should this criterion remain unchanged, it could be a determining factor for international operators when assessing the viability of entering the Thai market, which has otherwise generated considerable interest.

In addition to the above changes, the amended draft bill also seeks to address environmental considerations by requiring an Environmental Impact Assessment (EIA) report as a prerequisite for obtaining an entertainment complex license.

Investment interest and regulatory challenges

The potential legalization of casinos has attracted significant interest from global gaming operators. Las Vegas Sands, for instance, has expressed keen interest in the Thai market, although it must navigate regulatory challenges due to its agreement with the Singaporean government to operate only in well-regulated markets. The Royal Turf Club of Thailand has also shown strong commitment to investing in the entertainment complex, having already secured foreign investors.

However, the regulatory framework will be a critical factor in determining whether global gaming giants choose to invest. The bidding process for project licenses will only begin once the law is officially enacted and the Entertainment Complex Committee is formed. This ensures a transparent and competitive process, crucial for attracting reputable investors.

What investors need to know before potentially investing in the entertainment complex

The Research Centre for Social and Development conducted a survey in December 2023, estimating that 63.1 percent of Thai nationals engaged in gambling activities during the year 2023, accounting for approximately 34.5 million people. Gambling in Thailand includes legal forms such as the government lottery, which is deeply ingrained in Thai society. The data therefore makes it difficult to determine how much of this percentage is comprised of those who had gambled with illegal underground casinos.

According to the current draft of the Entertainment Complex Bill, operators must be registered as a juristic person under Thai law, either as a limited company or a public limited company. Consequently, foreign operators seeking to participate in the entertainment complex business must establish a local entity in Thailand. Applicants are also required to have a minimum paid-up capital of 10 billion baht (approximately US$272 million). There are no nationality restrictions for directors.

The location of entertainment complexes must be in areas designated by Royal Decree, allowing the government to strategically determine and expand approved locations over time. Each complex must operate at least four types of businesses as specified in the Entertainment Complex Act. While casinos are permitted, they must not exceed 10 percent of the total complex area, with the exact ratio varying depending on the location as determined by the Royal Decree. There is speculation over potential casino sites being at Klong Toey Port in Bangkok, U-Tapao Airport near Pattaya, Phuket, and Chiang Mai, although no official confirmation has been made.

Applicants for the entertainment complex license must submit an investment plan, specify the employment ratio between Thai and foreign workers, and outline measures to mitigate operational risks associated with the complex.

Any license awarded will be valid for 30 years, with renewals capped at 10-year terms. The initial license fee is set at 5 billion baht (approximately US$150 million), with an annual fee of 1 billion baht (around US$30 million ) required to maintain operations. The Entertainment Complexes Operation Regulatory Office is mandated to inspect operations every five years to ensure compliance.

In addition to licensing fees, the entertainment complex committee is responsible for developing a tax regime for gross gaming revenue. A feasibility study conducted in 2024, led by Deputy Finance Minister Julapun Amornvivat, suggested a 20 percent tax rate on gross gaming revenue. However, this rate has not been officially confirmed and may change during the legislative process, as it is not yet specified in the current draft. The final tariff structure is expected to be established through subsequent regulations, with details likely to emerge during legislative discussions.

The latest version of the Bill also addresses land lease terms for constructing entertainment complexes, extending the maximum lease period to 50 years – an increase from the 30-year limit under Thailand’s Civil and Commercial Code.

License holders may delegate the management of an entertainment complex, either partially or entirely, subject to approval by the Policy Committee. The license itself may also be assigned with the committee’s consent. Any changes to directors, executives, shareholders, or organizational structure must be reported to and approved by the Policy Committee to ensure regulatory compliance.

The Road Ahead

If the legislative process proceeds smoothly, Thailand could have a definitive answer by the end of 2025 as to whether the Entertainment Complex Bill will become law. If it does, then the bidding process for project licenses is likely to start in the middle or latter part of 2026. The final shape of the law is likely to resemble the public consultation draft released last year, although changes could be introduced during the first and second readings in Parliament.

By June or July this year, after the third reading before the Lower House, the regulatory framework should become clearer, outlining the requirements for prospective investors. This clarity will be crucial for both domestic and international stakeholders as they prepare to angle for a slice of Thailand’s new casino industry pie.

Gambling Act

While much attention has been directed toward the legalization of the Entertainment Complex Bill, which authorizes casino operations, Thailand’s gambling industry remains governed by the Gambling Act B.E. 2478 (Gambling Act), a piece of legislation that was enacted way back in 1935. This legislation, last amended in 1962, has remained largely unchanged for over six decades. Under the existing framework, gambling activities may be conducted with permission from the Ministry of Interior. However, such permissions are seldom granted due to the Ministry’s restrictive policies, except in limited and specific cases.

In a significant recent development, the government is now moving to amend the Gambling Act. The proposed draft law seeks to redefine “gambling”, increase penalties for gambling-related offenses to curb underground operations, and – most notably – introduce provisions that could legalize online gambling. This potentially seismic shift could fundamentally reshape Thailand’s legalized gambling landscape.

According to the proposal, online gambling would be permitted subject to official authorization. However, the regulatory framework outlining the application process and approval criteria has yet to be developed. Detailed regulations are expected to follow once the amended Gambling Act is enacted.

Conclusion

Thailand stands on the cusp of a new era in its entertainment and tourism sectors. The potential legalization of casinos functioning within larger mega-entertainment complexes and riding on the country’s already magnetic appeal as a regional entertainment hub, promises to transform Thailand into a premier destination for global entertainment-driven tourism. As if that is not monumental enough, online gambling may soon be legalized in Thailand as well. As the legislative process unfolds, all eyes will be on Thailand to see how it navigates the challenges ahead and converts them into opportunities that would be an economic game changer.