Public hearings indicate major revisions to Casino Bill
Thailand’s ambitions to legalise casinos have taken a significant step forward, with Hua Hin now being considered as a possible location for the country’s first legal casino.
This shift comes after recent public hearings revealed widespread support for placing the proposed entertainment complex outside Bangkok, with Hua Hin emerging as a potential site.
The Fiscal Policy Office (FPO) recently released the findings from public hearings held between 2nd and 18th August 2024 on the draft Comprehensive Entertainment Complex Act. The hearings, which sought feedback from various stakeholders, including public agencies, the private sector, and the general public, are set to play a pivotal role in shaping the future of the bill. Previously, Bangkok had been seen as the most likely location for the proposed entertainment complex, which would feature a casino. However, the public consultations have led to increased interest in alternative locations such as Hua Hin, Phuket, Chiang Mai, Chonburi, and Rayong.
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The push to shift the complex outside of Bangkok reflects a move which aims to spread economic benefits more evenly across the country. Hua Hin’s status as a well-established tourist destination, already popular with both domestic and international visitors, makes it a strong contender. This marks a notable change in direction from earlier plans that focused on Bangkok as the hub for such a development.
Overhaul of the Casino Bill
The casino bill itself is now facing substantial revisions, as highlighted by the feedback gathered during the public hearings. One of the key proposals that emerged is a name change for the bill, with many suggesting it be rebranded as the “Integrated Resort Act” to align with international standards and to better reflect the project’s goals. The term “Comprehensive Entertainment Complex” was considered too broad and was seen as not effectively communicating the purpose of the legislation.
Public feedback also suggested that the governance structure of the proposed entertainment complexes be modified. In addition to national-level committees, many recommended the formation of provincial-level committees in regions where the entertainment complexes would be located. This is seen as a way to ensure that local contexts are taken into account in the management and governance of these facilities.
Location and business operations
The location of the complex was one of the most contentious issues raised during the hearings. There was considerable support for placing the complexes in tourist areas outside of Bangkok, with Hua Hin, along with other locations, receiving multiple mentions. Proponents argue that siting the casino in such locations would distribute the economic benefits more widely and encourage growth in other regions.
In terms of business operations, feedback suggested that the range of businesses within the complexes be expanded. Originally limited to four types of businesses, there is now support for expanding this to seven, with the inclusion of large convention centres, museums, and racetracks. Another key suggestion was to promote Thai culture within the complexes, particularly through the sale of OTOP (One Tambon One Product) goods.
Additionally, there were calls for the inclusion of sports betting and skill-based games, such as poker, within the casinos. However, the proposal to allow online gambling met with significant opposition due to concerns over the social issues it might exacerbate.
Shareholding and employment
One of the most debated topics was the proportion of Thai ownership required for companies running the casinos. The current proposal suggests that Thai nationals should hold between 30% and 51% of shares, with restrictions put in place to prevent the use of foreign nominee shareholders. Additionally, there were calls for at least 80% of the workforce in these complexes to be Thai nationals.
Concerns were also raised about changes in management within companies that hold licences to operate casinos. It was suggested that changes should not require prior approval, provided the individual or entity is fully qualified.
Social and economic impacts
A significant portion of the feedback focused on the potential social impacts of legalising casinos. Many participants raised concerns about gambling addiction, family breakdowns, and the effect on public morality. In response, it was proposed that a dedicated fund be established to address these issues. The fund would be managed by a board consisting of experts in community development, mental health, and social issues, as well as representatives from civil society.
This fund would not only work to mitigate the negative impacts of gambling but also promote public health and improve the quality of life in communities affected by the casino’s presence.
Penalties and money laundering concerns
Another issue raised during the hearings was the penalties for businesses found to be in violation of the new law. Many felt that the current penalties outlined in the draft bill were too lenient and should be strengthened. Suggestions included higher fines, licence suspensions, and in some cases, criminal penalties. There were also proposals for confiscating the property or land of businesses that have their licences revoked.
Money laundering was also a major concern, with fears that the entertainment complexes could become hubs for such activities. Proposals to counter this included stringent anti-money laundering measures, such as enhanced checks on the source of funds used within the casinos, and close cooperation with Thailand’s Anti-Money Laundering Office (AMLO). It was also suggested that high-value transactions within the casino complexes be reported to the relevant authorities.
Investor confidence and financial transparency
To protect investors, there were calls for mechanisms that would allow for compensation if laws or conditions related to operating the casinos were to change. There was also support for involving international arbitration in any disputes that may arise, to build confidence among foreign investors.
Moreover, feedback stressed the importance of transparency, with proposals requiring licence holders to submit regular financial reports to Parliament. Public reporting on both business performance and the social impacts of the entertainment complexes was also recommended.
As Thailand edges closer to legalising casinos, the eventual location of the entertainment complex will be much debated over the coming months.
Hua Hin, with its existing infrastructure and reputation as a high-end destination, could well find itself at the centre of Thailand’s entertainment and tourism industry if these developments come to fruition.
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