Under new Thai PM, casino resorts not a sure thing
During his brief, year-long tenure, Srettha pushed entertainment complexes with gaming to build the tourist economy. With his abrupt ouster on 14 August, the plan hangs in the balance.
Srettha’s successor, Paetongtarn Shinawatra, is also a member of the Pheu Thai party, which is receptive to Thailand casinos. But she has yet to show her hand on the controversial issue.
Pros of legal Thailand casinos
Entertainment complexes, also known as integrated resorts (IRs), are full-scale entertainment destinations with hotels, restaurants and concert arenas.
Industry analysts say Thailand casinos could draw upward of $10bn in foreign investment and create tens of thousands of new jobs. One study suggests casinos would raise average tourist spend by 52%, or 411bn baht (£9.21bn/€10.8bn/$12bn).
US-based gaming giants including Wynn Resorts, MGM and the Las Vegas Sands Corp have all expressed interest in Thailand. So have Macau-based Galaxy Entertainment Group and Malaysia’s Genting Berhad.
Party members doubtful
With or without Paetongtarn’s support, legal gaming isn’t a sure bet in the Buddhist kingdom. The legislation faces opposition from several corners.
Last week, Chaichana Detdecho, deputy secretary-general of the Democrat party, said his party “will not support this bill”. He is dubious about claims Thailand casinos can succeed at the level of multibillion-dollar jurisdictions like Singapore. He suggested an alternative: legalising and regulating lotteries, which already flourish in the underground economy.
People’s Party MP Rangsiman Rome is concerned casinos will put Thailand at greater risk for money laundering and associated crimes.
No guaranteed benefits
On 13 August, the Bhumjaithai party issued a statement saying it opposes the bill for Thailand casinos for four reasons:
- Legal gaming isn’t guaranteed to stamp out the black market and may cause new problems, like addiction;
- Projected revenues don’t justify the investment;
- Thailand is already a tourism destination and doesn’t need casinos;
- The bill fails to ensure job security for Thai workers.
The Bangkok Post also takes a dim view of the legislation. In a 17 August editorial, it suggested the plan was a rush job by Srettha, a one-time real estate tycoon.
Srettha’s downfall “will delay the pro-casino policy that Pheu Thai has pushed forward aggressively”, stated the editors. Such a pause would be “welcome, as this policy is still considered half-baked, lacking public participation in any meaningful sense”.
“The Srettha government only offered a rosy picture and rarely addressed the project’s negative social impacts,” editors griped. “Unlike Singapore, Las Vegas or Macau, where law enforcement is effective, casinos in Thailand could lead to severe social problems: gambling addiction, a rise in crime, rampant corruption or even the spread of a grey industry operated by those with dubious affiliations.”
Thailand “does need a new magnet to attract new tourists”, the Post concluded, however.