Thailand's New Frontier: Casino Landscape Set for Change

September 18, 2024

Thailand’s New Frontier: Casino Landscape Set for Change

Following the endorsement of the report on the study of opening entertainment complexes by Thailand’s House of Representatives and Cabinet in early 2024, the draft Entertainment Complex Bill, B.E. … (the “Entertainment Complex Bill”) finally became open for public hearing and is now under the consideration of the Ministry of Finance. The Entertainment Complex Bill aims to liberalize and facilitate the establishment of entertainment complexes that include casinos, allowing participation from domestic and foreign investors alike.

Key Takeaways

Under the Entertainment Complex Bill, an “entertainment complex” is a venue that operates at least four types of entertainment businesses alongside a casino. These may include five-star hotels, restaurants and bars, game centers, and department stores, among others.

Based on the information publicly available as of the date of this publication, the Entertainment Complex Bill and its prospective subordinate legislation should encompass the following key requirements.

Licensing requirements: Business operators seeking to operate an entertainment complex business must first obtain a license. To qualify, applicants must: (1) be a company incorporated in Thailand and (2) have a minimum paid-up capital of THB 10 billion. This license will operate as a “super license” covering not only casino activities but also other operations within the complex, such as hotels, restaurants, bars, and game centers, which, under normal circumstances, may require separate licenses or permits. The license will be valid for 30 years and may be renewed for an additional 10-year term upon expiration. The license fees may depend on the location of the entertainment complex.
Minimum investment requirements: Based on the preparatory works by the drafting committee, entertainment complex business licenses may be classified into four different categories based on the size of the investment: small, medium, large, and extra-large. At this stage, licenses for the extra-large category, requiring an investment of THB 100 billion, are anticipated to be available.
Location of the entertainment complex: It is suggested that entertainment complexes be situated in the following areas: (1) within a 100-kilometer radius of international airports, (2) in tourist provinces (e.g., Bangkok), and (3) in border provinces (e.g., economic corridors). However, this requirement has yet to be incorporated into the Entertainment Complex Bill and may be further detailed in its subordinate regulations.
Taxation: Entertainment complex business operators may be subject to corporate income tax at a progressive rate and a casino tax at the rate of 17% on the revenue gained minus the winnings awarded to players (gross gaming revenue, or “GGR”). Other excise taxes may apply depending on which types of entertainment business are operated alongside the casino.
Casino entry requirements: A casino entry levy may be imposed on players who are Thai residents to deter vulnerable groups of people from entering the casino.

As Thailand embarks on this transformative journey to redefine its entertainment sector, the introduction of the Entertainment Complex Bill promises to reshape the casino landscape and open new business opportunities for domestic and international investors.

For more details on the Entertainment Complex Bill or assistance navigating these prospective legal and regulatory changes, please contact Charupat Boon-Long at [email protected] or Sippakorn Bunraksa at [email protected].

Related Professionals

Charupat Boon-Long

Thailand

+66 2056 5512

Email

Sippakorn Bunraksa

Thailand

+66 2056 5590

Email

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