Thailand’s revised draft of the entertainment complex bill outlines strict conditions for the implementation of casinos, with local punters being required to have at least THB50 million (USD 1.5 million) in fixed deposits for at least six months to be able to enter casinos.
The requirements also include an entry fee capped at THB5,000 (USD 150).
Ben Lee, managing partner at IGamiX Management & Consulting Ltd., pointed out that while the THB5,000 entry fee, equivalent to just USD150, was likely aimed at discouraging the working class from gambling, it would not pose a significant deterrent to the middle and upper classes.
“This fee is similar to what we see in Singapore and is relatively low. It will keep out the working class, which is a good thing [for social concerns]. However, it should not deter the middle and upper class, who will find the convenience of local access outweighing the cost and time required to travel not only to the border casinos but also elsewhere within the region to play,” Lee told the Times.
The revised draft also includes limiting the size of the casino to no more than 10% of the venue’s total area and requiring a separation between the casino and the rest of the complex with separate entrances.
Other businesses such as hotels, department stores, and even amusement parks or yacht clubs must be housed within the entertainment complexes, making them multifaceted tourism destinations.
Despite the entry fee potentially limiting the number of lower-income gamblers, Lee believes the proposal’s THB50 million deposit requirement for local players will create an even bigger barrier.
“The THB50 million deposit will almost certainly deter most locals, as it would anywhere else,” Lee explained, implying that this is a high entry threshold that could exclude a significant portion of the population.
The gaming expert noted that the disclosure requirement for locals wishing to gamble is an unusual step that hasn’t been seen even in countries with some of the toughest conditions in the region.
“The last rule has not been seen anywhere, not even in South Korea or Vietnam, who have some of the toughest conditions,” he said.
Echoing similar sentiments, Daniel Cheng, a gaming consultant based in Singapore, noted that a “further THB50 million bank deposit requirement would render Thai casinos no better than foreigner-only regimes like South Korea’s,” he said, as cited in a report issued by the South China Morning Post.
New public hearings for the revised draft law take place from February 15 to March 1.
The Thai government plans to pass the casino bill this year, hoping to attract more foreign investment and increase tax revenue.
Galaxy Entertainment Group Ltd. and MGM Resorts International are reportedly exploring potential opportunities in Thailand as a way to mitigate risks in Macau. Las Vegas Sands Corp. has also expressed interest in expanding into the Thai market.
Analysts have warned that Macau’s dominance could be threatened by Thailand.
Thailand welcomed 26 million visitors in the first nine months of 2022 and aims to reach 40 million tourists by 2025 — a milestone Macau was close to achieving in 2019.
“Thailand is the greatest challenge for any gaming jurisdiction in Asia,” Lee previously noted.
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