Thailand has, since the mid-1930s, taken a hard line against gambling of any kind within its borders. It began with the Gambling Act of 1935 and tightened eight years later with even stricter measures — a ban on possessing playing cards without a special excise stamp — despite the fact that the Kingdom had always been famous for its games of chance: fish fighting, cockfighting, even human fighting. As the new rules took hold, Thai society shifted toward the state lottery instead.
But those for whom the lottery isn't enough keep playing anyway, sometimes skirting the law. Casinos, for example, are legal for foreigners in Laos and Cambodia, so plenty of gambling-minded Thais drive there themselves, happily spend their personal budgets, and in doing so deprive the Kingdom of at least the VAT — best case scenario. Mostly, though, police periodically raid underground gambling dens, only for new ones to reopen the very next day on another side of town.
And now, 90 years after the Gambling Act banned gambling in Thailand, the government is seriously discussing building a new entertainment complex, where 10% of the site would be handed over to an actual state-run casino. The rest of the space would house malls, hotels, restaurants, parks, exhibition halls, and sports facilities.
On June 4th a press conference was already held for the "THAILAND ENTERTAINMENT COMPLEX" project — a world-class megacity. Deputy Finance Minister Julapun Amornvivat and Deputy Secretary-General to the Prime Minister Suksit Srijomkwan laid out the main reasons the government is pushing this megaproject, priced at over a hundred billion baht.
So what happened?
First, tourist flow. Right now it's seasonal, and the sector sits idle for several months a year. Opening the complex would reveal new facets of tourism in Thailand. People would come not just for the beaches, but to play roulette between sports championships — and those happen in any weather. Second, legalizing gambling under state control would help stamp out the underground trade and channel that lost revenue back into the treasury.
It's obvious that building and later running a megaproject like this carries serious corruption risk, which is exactly why the press conference proposed relying on Singapore's "Request for Concept" model, under which investors have to disclose everything up front: what will be built, how new staff will be trained, and — most importantly — the details of the tax system and anti-money-laundering measures. Another feature of the model is a premium clientele: most guests are VIPs with high spending potential.
The expected initial investment will run to at least 100 billion baht, but the projected economic returns are meant to eclipse the startup costs and push Thailand to a new level — plans call for up to 15,300 new jobs, and forecasts have the state's treasury growing exponentially after the complex opens: from 12 to 39 billion baht a year.
But all these reasons pale next to the core idea behind the Singapore model: revenue from the premium foreign-tourist segment of the entertainment sector goes toward improving everyday life for ordinary citizens.
But those for whom the lottery isn't enough keep playing anyway, sometimes skirting the law. Casinos, for example, are legal for foreigners in Laos and Cambodia, so plenty of gambling-minded Thais drive there themselves, happily spend their personal budgets, and in doing so deprive the Kingdom of at least the VAT — best case scenario. Mostly, though, police periodically raid underground gambling dens, only for new ones to reopen the very next day on another side of town.
And now, 90 years after the Gambling Act banned gambling in Thailand, the government is seriously discussing building a new entertainment complex, where 10% of the site would be handed over to an actual state-run casino. The rest of the space would house malls, hotels, restaurants, parks, exhibition halls, and sports facilities.
On June 4th a press conference was already held for the "THAILAND ENTERTAINMENT COMPLEX" project — a world-class megacity. Deputy Finance Minister Julapun Amornvivat and Deputy Secretary-General to the Prime Minister Suksit Srijomkwan laid out the main reasons the government is pushing this megaproject, priced at over a hundred billion baht.
So what happened?
First, tourist flow. Right now it's seasonal, and the sector sits idle for several months a year. Opening the complex would reveal new facets of tourism in Thailand. People would come not just for the beaches, but to play roulette between sports championships — and those happen in any weather. Second, legalizing gambling under state control would help stamp out the underground trade and channel that lost revenue back into the treasury.
It's obvious that building and later running a megaproject like this carries serious corruption risk, which is exactly why the press conference proposed relying on Singapore's "Request for Concept" model, under which investors have to disclose everything up front: what will be built, how new staff will be trained, and — most importantly — the details of the tax system and anti-money-laundering measures. Another feature of the model is a premium clientele: most guests are VIPs with high spending potential.
The expected initial investment will run to at least 100 billion baht, but the projected economic returns are meant to eclipse the startup costs and push Thailand to a new level — plans call for up to 15,300 new jobs, and forecasts have the state's treasury growing exponentially after the complex opens: from 12 to 39 billion baht a year.
But all these reasons pale next to the core idea behind the Singapore model: revenue from the premium foreign-tourist segment of the entertainment sector goes toward improving everyday life for ordinary citizens.
Thailand's Gambling Complex
Original text translated by Claude