Deputy Finance Minister proposes a Thai Disneyland, casinos, and a welfare overhaul in Parliament. The government aims to eventually boost tourism, create jobs and launch a welfare state. An Entertainment Complex Bill is expected before parliament in 2025.
On Friday 13th, Deputy Minister of Finance Julapun Amornvivat made a passionate submission to parliament supporting the government’s plans for casinos. In short, they are part of an entertainment complex proposal designed to boost foreign tourism. Mr. Julapun linked the plans to a revolution being proposed in Thailand’s tax system to create, in effect, a welfare state. This is based on both social welfare for the elderly and a negative tax system. Of course, this will, in the first place, require all Thai workers and businesses to be registered as part of an extended tax base. The minister explained the process underway. At the same time, he said it would be early 2025 at the earliest before the Entertainment Complex Bill was ready to be reviewed by parliament in three readings.
The government is working on a bill to legalise casinos in Thailand. However, the final details of the plan have yet to be worked out. Furthermore, they will be influenced by both public hearings and debates in parliament.
On Friday in parliament, Deputy Minister of Finance Julapun Amornvivat offered some glimpses into the wider picture of the flagship government proposals. Certainly, it was included in Thursday’s government policy statement to parliament by Prime Minister Paetongtarn Shinawatra.
The development of Casinos is tied to Entertainment Complexes aimed at boosting tourism and creating jobs
The development of casinos in Thailand, in short, is being linked to what the Pheu Thai-led government sees as entertainment complexes. For instance, on Friday, Deputy Finance Minister Julapun touted the possibility of a Thai Disneyland. In particular, within the policy speech, these were referred to as major man-made tourist attractions.
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Certainly, according to Mr. Julapun, up to 5% of such sites will be reserved for a legalised casino. On Friday, he assured parliament that such development will not cost less than ฿100 billion.
Moreover, he linked the new entertainment complexes to plans by the government to create a new tax and welfare system for all in Thailand.
He emphatically stated that these developments will bring new money and investment into the country. Certainly, they will create 10-20,000 new jobs in the first three years. The minister said each entertainment complex should have a concert venue with a capacity for 50,000 seats.
Foreign tourism expected to be a major source of revenue while the people have the final say through Parliament
At the same time, he insisted that 30% of the turnover in such facilities will come from foreign tourism.
Mr. Julapun decried negative talk of this being a plan for capitalists and fears of monopolies. In short, he said ultimately, the boss in Thailand was the people. Therefore, the people would decide on this plan through parliament.
He stated the government was working on a negative income tax scheme. In addition, it would need ฿500 billion per annum to care for the elderly under a revamped welfare system. The junior minister of finance said it was everyone’s dream in parliament to create such a state.
For instance, under the negative tax plans, those with income below the threshold would receive support. In effect, it would come from taxes paid by other income earners and government revenues.
At length, he said the government’s plans were not about benefiting capitalists.
Proposed legislation on Casinos being revised under the 2018 State Fiscal and Financial Disciplines Act
Mr. Julapun said many changes to the proposed legislation are in the works. Significantly, officials are working to ensure the government’s plans comply with provisions of the 2018 State Fiscal and Financial Disciplines Act. This is a landmark junta era legal provision designed to regulate government planning and development. In particular, it is designed to safeguard the financial stability of the state.
In other words, it imposes prohibitions on any future government decisions which may conceivably jeopardise such stability.
After that, Mr. Julapun said the new ‘Entertainment Complex Bill’ would be presented for consideration by the cabinet. The bill will only be finalised after extensive public hearings. Before this, it would be reviewed by the Council of State. Thereafter, it would have three readings in parliament.
The minister suggested that this would be sometime in the opening months of 2025 at the earliest. He said that already there had been substantial interest from private investors and commercial interests.
Entertainment Complex Bill to undergo cabinet review with potential revisions to ensure efficiency and viability
After that, he said that the bill would first be reviewed by the cabinet. In the event that changes were required to make it viable, they would be made. It was most important that the law governing the proposed entertainment complexes was both efficient and effective.
Certainly, the law would have to also get the final imprimatur from all relevant government agencies. However, finally, it would be reviewed and approved by parliament.
Undeniably, there are varied opinions on this plan. While the minister suggested support from coalition parties in government, the Bhumjaithai Party appeared to reserve its position.
Bhumjaithai Party MP warns of monopolies. Proposes government-run casinos. Thaksin opposes public funding
Bhumjaithai Party MP for Ang Thong Korrawee Prissananantakul warned about allowing monopolies to develop in this area. Certainly, he suggested that the government itself should run such casinos.
At the same time, it is known that Pheu Thai Party boss Thaksin Shinawatra does not favour the use of public money.
Mr. Thaksin has been heard to boast that not a single baht of public money is required. Meanwhile, the state and the public will gain from the concessions.
In summary, it is proposed to charge an annual concession fee. For instance, a figure of ฿1 billion a year has been proposed. This would be in addition to revenue generated at such sites and indirect taxation.
Nonetheless, Mr. Korrawee had reservations. In particular, he said he did not want to see such developments in small population centres. At the same time, he warned they may create an unequal society or distribution of income.
Thailand’s troubled history with gambling leads to concerns over crime, addiction and income inequality
Undoubtedly, however, Thailand’s experience with legalised gambling has not been good.
In 1917, all gambling sites in Thailand were shuttered. This came following a decision in the 19th century to prohibit gambling altogether in the South of Thailand.
At that time, gambling dens were seen as linked with vice and criminality of all kinds. Furthermore, the outlawing of gambling was seen as the mark of a more progressive and healthier state.
Undoubtedly, there were good reasons for the decision. The wave of gambling in 19th-century Thailand was accompanied by crime and bankruptcies.
At length, in 1930, gambling through casinos was legalised specifically in the Pran Buri District of Prachuap Khiri Khan. This was the first Gambling Act. However, the law was amended in 1935 to outlaw all gambling in the kingdom.
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Since then, the industry has gone underground. At the same time, online gambling sites have flourished. Evidence emerged in 2023 showing that much of this activity was controlled by rogue elements within the Royal Thai Police. Vast sums were being earned.
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Legal casinos and gambling in Thailand being weighed up carefully after Deputy PM’s backing
Before all of this, and indeed presently, the Royal Thai Police associates gambling and the addiction it creates as a direct and powerful driver of crime. For instance, in May 2023, a now-dismissed deputy police chief made a startling revelation.
In short, he revealed that Thailand’s most prolific serial killer had an online gambling addiction.
Ironically, General Surachate Hakparn’s own career was brought to a halt this year over links to illegal online gambling sites. At the same time, the police chief and over 30 other senior officers were linked to the industry.
Uncertainty surrounds the government’s stance on online gambling as the discussion focuses on Tourism
At this time, it is not clear what the government’s approach to online gambling will be. Public discussion in recent days has been linked to entertainment complexes tied with foreign tourism.
Certainly, in the last year, it has been noted that access for Thai locals to such facilities would be limited.
Notwithstanding the government’s plans, the development of casinos in countries adjacent to Thailand does not augur well for the future. In Laos, Myanmar, and particularly Cambodia, casinos have been associated with illegality, money laundering and Chinese crime gangs.
Similarly, it has been noted that they are linked to illegal call centre activity. Furthermore, they are associated with both prostitution and human trafficking.
Supporters of the government will argue that this is due to a lack of rule of law in these areas. However, even Australia has seen systemic links between its casinos and money laundering. This has been confirmed by formal government inquiries there. Subsequently, the casino concession holders were blamed for operational failures.
Casinos are often linked to crime and corruption, but Singapore’s model offers a potential blueprint for success
Therefore, it is safe to say that large flows of gambling revenues are, at the end of the day, always a magnet for crime and corruption.
That is why Thailand’s 19th and early 20th-century forefathers outlawed the activity, at least above board. At that time, they also outlawed prostitution and the opium trade. Indeed, it appears not much has changed in the world.
In the final analysis, Thailand will be looking at Singapore’s experience. The opening of two casinos there in 2010 is seen as a worldwide success. The Marina Bay Sands and Resorts World Sentosa have ended up as lucrative venues for the government at the same time. Well-regulated and run, they are seen as a commercial success.
However, in the period 2012 to 2014, the city-state’s Institute of Mental Health reported a 60% rise in gambling addiction problems compared to pre 2010 data. The casinos also offer online gambling services to the public.
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Further reading:
Legal casinos and gambling in Thailand being weighed up carefully after Deputy PM’s backing
Top Royal Thai Police officers under scrutiny over links to huge illegal online gambling cash flows
Unlikely rags to riches convict star arrested again in Thailand over online gambling promotion
PM plays clips to parliament to defend himself against media ‘distortion’ of gambling claims
Rayong gambling boss is arrested as fact-finding panel finds police and officials acted corruptly
Gamblers and hosts at illegal gambling dens are being jailed as massive crackdown proceeds apace
World cup brought home Thailand’s chronic gambling issue
Activist: more gambling dens in Rayong, 45-year-old security man tested on Sunday dies on Monday
