Thailand government reportedly plans to legalise online gambling

Deputy PM Prasert Jantararuangtong cited potential economic benefits as the main reason for legalising online gambling.

Thailand.- The government of Thailand is reportedly planning to start discussions about legalising online gambling. According to the Bangkok Post, Deputy Prime Minister Prasert Jantararuangtong urged officials from all relevant ministries to begin coordinating their efforts and said an official study on this plan should be finished in the next few months.

Prasert, who is also Thailand’s digital economy and society minister, said that many legal changes are needed for online gambling to be legal but added that online gambling platforms handle a lot of money daily, and if properly taxed, it could benefit the economy.

As regards the age limit on access to online gambling sites, Prasert indicated that the issue has not yet been discussed.

Former Thai Prime Minister Thaksin Shinawatra had already suggested that regulating online gambling could benefit both the economy and society.

Bill to legalise casinos in Thailand could be passed this year

The government hopes the legislation to allow casino resorts will be passed by the two chambers of the country’s parliament this year. Last November, Prommin Lertsuridej, Secretary-General to the country’s Prime Minister, Paetongtarn Shinawatra told Bloomberg, that “the law should be passed in six months from now at the earliest.”

Analysts at Citigroup have forecast that casinos in Thailand could generate US$1.91bn annually in gross gaming revenue (GGR). That would surpass the GGR of Singapore’s two casinos and place Thailand “only behind Macau and Las Vegas”.

Analysts George Choi, Preenapa Detchsri and Timothy Chau based their analysis on the assumption of two licences in Bangkok and one each in Pattaya, Phuket and Chiang Mai, all popular destinations for international tourists. They estimated that any international casino operator granted an entertainment complex licence in Bangkok could expect at least a 15 per cent increase in EBITDA while some operators could see annual EBITDA nearly double assuming a 50:50 joint venture with local partners.

“In light of the lower gaming tax rate at 17 per cent and the lower operating expenses – mostly wages and utilities – versus Singapore, we believe EBITDA margin could reach 40 per cent to 50 per cent, which implies Thailand could see industry EBITDA of approximately US$4.1bn annually,” they said.

The draft bill proposes 30-year casino licences with the option for a 10-year renewal. Complexes would be located in designated areas and operated by companies registered in Thailand with a minimum paid-up capital of THB10bn (US$283m). A policy panel led by the prime minister and a regulatory agency would oversee the industry.

According to a study by the Fiscal Policy Office (FPO), the establishment of IRs could increase visits to Thailand by 5 to 20 per cent and increase spending per visitor from THB40,000 (US$1,184) to THB60,000 (US$1,776).

Deputy PM Prasert Jantararuangtong cited potential economic benefits as the main reason for legalising online gambling. Thailand.- The government of Thailand is reportedly planning to start discussions about legalising online…