BANGKOK — The entertainment complex project will be considered by the cabinet later this year, despite public and political debate over the stimulus package, particularly the inclusion of casinos.
Julapun Amornwiwat, deputy finance minister, said on October 24 that the Finance Ministry has completed its study on opening an entertainment complex. Public consultations have resulted in an 82 percent approval rating, with suggestions from various sectors on issues such as ethics, structural concerns and business benefits.
Julapun clarified: “We take note of all recommendations, but not every comment can be incorporated into legislation. The feedback will be documented and incorporated into the official process. The next step is to submit the proposal to the Cabinet by the end of the year, followed by review by the Council of State and submission to the House of Representatives.”
The House of Representatives will convene its regular session from mid-December 2024 to April 2025. During this process, the exact details of the project’s location and budget will not be disclosed. However, the registered capital required to operate the company will be 10 billion baht.
Julapun pointed out the great interest of the private sector and emphasized that the project could create new tourist attractions. A study by the Fiscal Policy Office (FPO) shows that the complex could increase tourism by 5-20 percent, boost GDP during the construction and investment phases and increase the average spending of foreign tourists from 40,000 to 60,000 baht per person. The project is also expected to create employment opportunities for locals.
The bill allows Thai citizens to enter casinos with a maximum entry fee of 5,000 baht per visit. The project will offer licenses with an initial term of 30 years, renewable every 10 years. Each license will cost 5 billion baht upfront, with an additional annual fee of 1 billion baht.
The project gained traction after the Cabinet acknowledged the feasibility study on April 9, 2024, to address illegal gambling and stimulate the economy. On June 4, 2024, Prime Minister Srettha Thavisin tasked the Ministry of Finance with expediting the process, preparing the legal framework, and coordinating with other relevant agencies.
The main elements of the proposed legislation are:
Establishment of the Entertainment Business Policy Board, chaired by the Prime Minister, with responsibility for setting policy, issuing licenses and setting license fees and regulations.
Administrative Board to oversee the fund and handle complaints related to the complex.
Regulatory Authority (with legal status, independent of government agencies) to develop strategic plans, monitor compliance and stop casino activities when necessary.
Licensing requirements: Applicants must be registered companies in Thailand with a minimum capital of 10 billion baht and submit land use plans and financial sources.
The complex will initially require an investment of at least 100 billion baht. It will include sports facilities, theaters, parks, water parks and amusement parks, with casinos accounting for only 5 percent of the total area. A special fund will also be set up to deal with the social impact of the complex and will initially be financed by the government.
The government expects to receive revenue from:
- License fees, which vary according to project size (S, M, L, XL), with upfront and annual payments.
- Gambling taxes, based on gross gaming revenue (GGR), are similar to the models in Las Vegas (10 percent) and Singapore (17 percent), where VIP and general customers are taxed differently to attract high-rollers.
- Entry fees to prevent disadvantaged Thai groups from gaining access to casinos, with fees adjusted to local income levels.
Several large corporate groups have expressed an interest in investing in the project:
- Ratchadamnoen Club & Royal Sport Complex (RSC) said that they are negotiating with four partners and are considering three sites in Bangkok: Nong Chok (1,000 rai), Lat Krabang (2,000 rai) and Khlong Toei Port (2,300 rai). Their project, “The Royal Siam Haven”, is scheduled to start around 2025 with a 7-year development plan.
- UTA Group: Comprising Bangkok Airways, BTS Group Holdings and Sino-Thai Engineering and Construction, which plans to combine the entertainment complex with the U-Tapao Airport and Eastern Aviation City development projects.
- Siam Park City Group: The operators of Siam Amazing Park (Suan Siam) plan to expand the adjacent area by 217 rai to a total of 500 rai, taking advantage of easy access from Don Mueang and Suvarnabhumi airports.
- Global casino giants: Interest has also been shown by companies such as Las Vegas Sands Corporation, Wynn Resorts, Caesars Entertainment, MGM China Holdings Limited and Hard Rock Café.
This ground-breaking initiative aims to combine entertainment, tourism and economic growth. The first phase requires significant investment to build a diverse complex that could potentially redefine Thailand’s tourism landscape.
____________
