Thailand Firmly Pushes Forward with Expansion of Casino Resorts Akin to Las Vegas
It's on: Thailand's Gambling Goals
Thailand is gearing up to join the elite gambling club, advocating for Las Vegas-style integrated resorts. In a recent press release, Deputy Finance Minister Julapan Amornvivat fired back at critics, highlighting the lucrative perks of legalized gambling. But many vocal opponents are still hesitant, leaving Thailand's gambling debut uncertain.
No Stopping the Show
Julapan took on casino expansion skeptics, addressing concerns about Thailand's reputation being sullied by entering the gambling market. The Minister posed the question: If economic heavyweights like the US, Singapore, or Japan offer regulated gambling, should they be branded as havens of vice?
Julapan attributed the recent wave of criticism to the personal view of Sethaput Suthiwartnarueput, the Bank of Thailand Governor, rather than an official stance. Sethaput's earlier remarks about potential nationwide reputation damage due to gambling reignited the debate on this contentious issue.
Undeterred by the controversy, the Cabinet presses forward, and the bill is approaching parliamentary discussion. The proposed plan envisions more than just gambling. Thailand's entertainment hubs will encompass luxury hotels, rejuvenation centers, conference facilities, and high-end shopping, resembling similar venues in locales such as Las Vegas and Macau.
More Than a Gamble
According to Julapan, the initiative extends beyond simply capturing a new tax source. He was adamant that legalizing gambling would stimulate Thailand's broader tourism sector. The plan also addresses concerns about its societal impact, proposing a new regulator, feasibility studies, and a tender process to attract global investment.
The government is resolved to tread cautiously, ensuring economic growth, job creation, and new employment opportunities, all while maintaining social stability and the wellbeing of the Thai population.
Optimistic assessments suggest construction on the first casino resort might commence within three years. Industry leaders are already eager. Ed Bowers, president of MGM International's global development, predicted that Thailand's annual gaming revenue could surpass $10 billion, securing a top spot among Asian gambling hotspots. He referred to the new legislation as an "rare chance," reaffirming MGM's interest in the region.
Despite the government's best efforts, the bill does not enjoy universal support. In April, close to 200 lawmakers expressed substantial concerns, opposing the bill's casino provisions, focusing on potential social costs, particularly for disadvantaged communities. However, momentum appears to be with the government, as Thailand might soon become a key player in the Asian gambling arena.
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Highlights:
- Progress Update: The bill to legalize integrated resorts is close to being debated in parliament, with an anticipated July timeline[3][4].
- Investment Amounts: Each integrated resort could attract investments ranging from $6.2 billion to $9.2 billion, considerably surpassing initial estimates[5].
- Access Restrictions: Global operators like MGM Resorts are pushing for Thai residents to have access to these resorts, deeming it essential for the sector's success[4].
- Economic Impact: The project is projected to boost Thailand's GDP by 0.8% annually and increase tourist spending significantly[2].
- Job Creation: Over 9,000 to 10,000 direct jobs could be created, with possibilities for more[2].
- Tourism Enhancement: Similar developments in Singapore have demonstrated substantial tourism growth, and Thailand seeks to capitalize on this potential[2].
- Social Challenges: Concerns about the social impact of legalized casinos persist, with some calling for a public vote on the matter[4].
- Regulatory Obstacles: Balancing economic benefits with social concerns and ensuring effective regulation remains a challenge[4].
- Investor Interest: Major global operators like Wynn Resorts and MGM Resorts have shown interest in investing in Thailand, with key players meeting with government officials to discuss potential investments[5].
- The Deputy Finance Minister, Julapan Amornvivat, pointed out that if economic powerhouses like the United States, Singapore, or Japan offer regulated gambling, then Thailand should not be branded as a haven of vice.
- Ed Bowers, President of MGM International's global development, claimed that Thailand's annual gaming revenue could exceed $10 billion, ranking it among top Asian gambling hotspots, and he reaffirmed MGM's interest in the region.
