BANGKOK: An overwhelming majority of respondents in a public hearing has backed Thailand’s plan to legaliSe casinos, with the government signaLling it’s open to incorporating suggestions to ease the high entry barrier for the locals.
About 80% of the participants agreed with the overall content of a draft bill to pave way for casinos to be housed inside large entertainment complexes.
More than 70,000 people submitted their opinions and recommendations during the Feb 28-March 14 public hearing held by the Finance Ministry, according to a government statement.
Tourism-reliant Thailand aims to pass the controversial casino bill this year to attract more foreign investment and lift tax revenue, while also tackling illegal gaming venues.
But the move has been criticised by the opposition and groups fighting to tackle gambling addictions among Thais, saying casinos will largely benefit big businesses and foreign companies.
Global gaming companies have long canvassed for legalisation of casinos in the nation, one of the world’s top tourism destinations.
Galaxy Entertainment Group Ltd and MGM Resorts International are said to be studying potential opportunities in Thailand as a hedge against uncertain prospects in Macau. Las Vegas Sands Corp has said it would be interested in expanding to Thailand.
To address public concerns that legal casinos would fuel gambling addiction, the Council of State has revised the draft to set limits on the casino area inside an entertainment complex besides proposing high entry barriers for Thai citizens.
A casino will not occupy more than 10% of the total area inside an integrated resort, according to the draft bill. Thais wishing to enter the gaming venues would be required to present bank statements showing fixed deposits of at least 50 million baht (US$1.5 million) in the previous six consecutive months, while foreigners only have to be at least 20 years old.
The 10% area cap would probably be too low, according to some respondents who argued for bigger zones for gaming with tighter supervision. The 50 million baht proof is also too high as it restricts the number of potential customers, they said.
The government will include some recommendations from the respondents into the bill before submitting it to the cabinet for approval, Deputy Finance Minister Julapun Amornvivat told a conference last week.
Once the cabinet clears it, the bill will be sent to the House of Representatives and the upper house Senate for approval.
Under the proposed legislation, entertainment complexes would be operated by Thai-registered companies with a paid-up capital of at least 10 billion baht.
A licence for 30 years will cost 5 billion baht in the first year and 1 billion baht for each remaining year. The permit can be extended for up to a decade on each renewal.
A committee headed by the prime minister will set finer rules, including the income tax rates for casinos, the number of licences, and the locations.
The government may initially grant casino licences in popular tourist destinations, including Bangkok, Chiang Mai and Phuket, according to local media reports. - Bloomberg
