Thailand tightens casino rules: Will tourists still flock to gamble?

Thailand has tightened proposals to legalise casinos within integrated “entertainment complexes,” amid growing concerns about the potential for problem gambling as the nation moves closer to becoming the latest player in the global gaming industry.

A revised draft of the entertainment complex bill, published Saturday, proposes that casinos can make up no more than 10% of the premises of their host venue and creates disclosure requirements for locals who want to gamble. The locations of complexes will be carefully considered and determined by a special committee, according to the proposal, which has been put up for public hearings until March 1.

Another change is that casinos will now be required to be separated from the rest of the complex, with their own gates and entrances. The proposal still mandates that at least four other types of businesses must be housed inside the entertainment complexes, which may include a department store, a hotel, an amusement park and a yacht club.

The Thai government aims to pass the casino bill this year, seeking to draw more foreign investment and collect more taxes, in a potential win for global gaming companies who have long canvassed for legalization of casinos in the tourism hot spot. 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.

Indeed, Thailand can emerge as a major player in the global gaming industry if casinos become fully operational in about six years, Citigroup Inc. said in a report last year. The country’s gross gaming revenue could reach $9.1 billion, making it the third-largest market in the world behind Macau and Las Vegas and ahead of neighboring Singapore, Citigroup analysts said.