You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

Search
Close this search box.
September 18, 2024

Thailand’s New Frontier: Casino Landscape Set for Change

Subscribe to Updates

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

Practices

Corporate/M&A

Location

RELATED INSIGHTS​

October 4, 2022
On August 31, 2022, the Government of Vietnam issued Decree No. 58/2022/ND-CP guiding the registration and management of operations of foreign non-governmental organizations (NGOs) in Vietnam (“Decree 58”). This decree will come into effect on November 1, 2022, replacing Decree No. 12/2012/ND-CP of the Government dated March 1, 2012, on the same matter (“Decree 12”). In general, the provisions under Decree 58 appear more detailed and stricter than those under Decree 12. In particular, there are two notable changes in Decree 58 in comparison with its predecessor: the definition of foreign NGO and the suspension and termination of a foreign NGO’s operation. New Definition of Foreign NGOs Under Decree 58, “foreign non-governmental organization” means a non-profit organization, social fund or private fund established under foreign laws; having legitimate capital sources from foreign countries; conducting development assistance and humanitarian aid activities not for profit or other purposes in Vietnam; and not receiving financial donations, calling for sponsorship, or raising funds from Vietnamese organizations and individuals. This definition has been narrowed in comparison to Decree 12, which, in addition to non-profit organizations, social funds, and private funds, also included “other social or non-profit organizations” as a category. Decree 58 further affirms that foreign NGOs must have capital sources from overseas and cannot receive funding from local sources. The last requirement had been a matter of concern in the past when foreign NGOs wanted to receive donations from Vietnamese entities. In practice, the prohibition of local funding had been known as an unwritten policy of the government; it is now officially recognized in Decree 58, and will prevent foreign NGOs from approaching local funding sources. More Specific Suspension and Termination Regulations Under Decree 12, there was no separation between the circumstances in which a foreign NGO’s operation would be suspended and those
Read More
September 27, 2022
Attorneys from Tilleke & Gibbins’ corporate and commercial group in Bangkok have contributed the Thailand chapter of the new Lex Mundi Sustainability and Competition Global Practice Guide. Featuring contributions from Lex Mundi member firms from around the world, the guide seeks to provide in-house and outside counsel with information on ESG (environmental, social, and governance) measures related to the competition regime in each jurisdiction. The chapters, which cover 44 jurisdictions around the world, are provided by member firms in the global Lex Mundi legal network. Each chapter covers the following main areas: Presence of ESG measures and sustainability agreements in the competition regime; Guidance from authorities related to ESG initiatives and competitor working groups; Calculation and reporting of ESG efforts; Precedents involving ESG and sustainability matters in the country; and Antitrust regulations that could lead to ESG litigation. To read the Thailand chapter or browse the other jurisdictional contributions, please visit the Lex Mundi website.
Read More
September 12, 2022
Throughout 2022, the Central Bank of Myanmar (CBM) has implemented a series of rules surrounding the compulsory conversion of foreign currency balances in the country. This began on April 3, when the CBM issued a notification directing foreign currency holders in Myanmar to convert their foreign earnings into Myanmar kyat (MMK), within one day, at the official exchange rate. Since then, the CBM has issued further clarifications and instructions for banks authorized to handle foreign currency, responded to some concerns from foreign investors by exempting certain foreign investment projects from the conversion requirement, and relaxed the currency conversion requirements for trade at the Chinese and Thai borders. The process has not been without some trial-and-error as well, with the CBM walking back some exemptions after they were enacted. Foreign investors and business owners, both in the country and abroad, have raised concerns about this centralized control of foreign currency flow and the depletion of foreign currency in Myanmar’s business community. To help readers understand the sometimes-surprising moves by the CBM over the past months, this article will summarize the key developments in the CBM’s efforts relating to foreign currency conversion. Establishment of Compulsory Exchange Requirement On April 3, 2022, the CBM issued Notification No. 12/2022 and Directive No. 4/2022 requiring nearly all individuals, companies, and other organizations in Myanmar to convert foreign-currency income received from abroad to MMK within one working day of receipt. These requirements took immediate effect for all transfers and applied retroactively to foreign currency balances already in the country. All authorized dealer (AD) banks (i.e., those licensed to exchange foreign currency) were instructed to convert foreign currency held in the foreign currency accounts of “internal residents”—which included locally registered companies, organizations, and offices; Myanmar branches of foreign companies; and individuals residing or established in Myanmar
Read More
September 8, 2022
Thailand’s Trade Competition Commission has amended the guidelines prohibiting large purchasers from setting unfair credit terms for small and medium-sized enterprises (SMEs). The new guidelines, which were published in the Government Gazette on August 17, 2022, revise the definition of SMEs and clarify the duties of concerned parties. The original guidelines, which took effect in December 2021, set a favorable maximum period for credit terms for SMEs selling products or services to a third-party purchaser. Prescribing longer credit terms than the mandatory period would constitute an unfair trade practice in violation of the Trade Competition Act B.E. 2560 (2017). In defining what businesses are considered SMEs, the guidelines set thresholds for the number of employees and amount of annual turnover. The amended guidelines maintain these thresholds, but the new guidelines require that both employee-number and turnover thresholds be met in order for a business to be considered an SME. In contrast, the original guidelines only required either the employee-number threshold or the turnover threshold to be met. This amendment will likely mean that fewer business operators qualify as SMEs. Accordingly, two types of businesses are defined as SMEs under the guidelines: Manufacturers of goods with up to 200 employees and an annual turnover of no more than THB 500 million (approximately USD 13.5 million); or Service providers or wholesale or retail businesses with up to 100 employees and an annual turnover of no more than THB 300 million (approximately USD 8.1 million). To benefit from protection under the new guidelines against unfair credit terms, SMEs must provide documents proving the number of employees and the amount of annual turnover to trade partners that purchase goods or services from them. The new guidelines come into force on September 16, 2022. For more information on the unfair credit term guidelines, or
Read More

Contact

We have seven offices in six countries
across Southeast Asia.

Contact Us

Careers

We are always seeking great people to grow
our amazing team.

Join Us

Networks

© 2024 Tilleke & Gibbins International Ltd. All rights reserved.

© 2020 Tilleke & Gibbins International Ltd. All rights reserved.

Privacy Policy

| Fraudulent Communications

| Legal Notice