The Thai government has advanced a landmark initiative to legalise gambling and casinos, with the cabinet’s approval of a draft law to bolster tourism, increase state revenue, and create jobs. Prime Minister Paetongtarn Shinawatra has positioned this initiative as a cornerstone of Thailand’s strategy to enhance its global entertainment and tourism hub appeal.
The draft law, which will now move to parliamentary discussions, envisions integrating casinos into large-scale entertainment complexes, offering a regulated and transparent gaming environment. Currently, gambling in Thailand is largely restricted to state-controlled horse races and lotteries, while underground betting activities flourish.
In contrast, neighbouring countries such as Cambodia, the Philippines, and Singapore have benefited from well-established casino markets. By legalising gambling, Thailand hopes to capture lost revenue and compete with these regional players, transforming its tourism landscape.
Economic and social implications of legalised gambling
The proposed legislation is expected to drive an increase in tourism revenue and job creation. According to local media reports, Deputy Finance Minister Julapun Amornvivat estimates that foreign visitor numbers could rise by 5 to 10 percent, with tourism revenue increasing from THB120 billion to THB220 billion (€3.4 billion to €6.2 billion) annually. Furthermore, the law could create 9,000 to 15,000 new jobs, offering a boost to local employment.
While past attempts to regulate gambling have faced resistance from conservative groups in this Buddhist-majority country, the government is now emphasising the potential economic benefits and its ability to curb illegal gaming activities.
A new frontier in Southeast Asia’s gaming industry
Thailand’s entry into the casino market is poised to disrupt the Southeast Asian gaming industry. Joe Pisano, CEO of JADE Entertainment & Gaming Technologies, told SiGMA News that he views this development as a pivotal opportunity for global operators to invest in a high-potential market.
“Thailand, a renowned tourist destination with a rich cultural heritage, is poised to embark on a new era. The government’s recent initiative to legalise casino operations presents a unique opportunity for international casino operators to invest in a rapidly growing market,” Pisano said.
Neighbouring countries may face challenges in retaining their market share. “Thailand’s move could encourage other countries to review their own gaming regulations to stay competitive,” he added.
Pisano explained that smaller casino hubs like Cambodia and Laos, which rely heavily on border-town gaming establishments, may struggle to compete with Thailand’s infrastructure and accessibility. Conversely, he said that Vietnam might accelerate its pilot programmes, allowing local residents to gamble, and the Philippines could bolster its regulatory framework to maintain competitiveness.
Prime locations and revenue projections
Analysts from Maybank Securities forecast that Thai casino-integrated entertainment complexes could generate annual revenues of approximately THB187 billion (€5.3 billion), accounting for about 1 percent of the country’s GDP. Additionally, the move is expected to address the long-standing issue of illegal gambling, redirecting substantial underground earnings into legal, state-controlled channels.
Potential locations for these entertainment hubs include the Eastern Economic Corridor (Rayong, Chonburi, Pattaya, and Chachoengsao), southern provinces such as Phuket and Krabi, and key cities in the north and northeast. These areas are already popular with international tourists, offering infrastructure and accessibility that could support large-scale casino operations.
A regional power shift in tourism and gaming
Thailand’s potential to rival established gaming destinations like Macau, Singapore, and Manila is gaining recognition. Speaking with SiGMA News, Tim Nguyen, Director of Fortuna Investments Worldwide, highlighted Bangkok as a key competitor to traditional gaming hubs. He notes that while smaller markets such as Phnom Penh may retain niche appeal due to monopolies and high-quality offerings, Thailand’s scale and appeal could reposition the region’s tourism and gaming landscape.
“It will create a new gaming hub or destination,” Nguyen said. “People will talk about Singapore, Manila, and Bangkok are the new big competitors of Macau.”
Broader implications for tourism recovery and growth
With this development, Thailand’s tourism sector is said to have robust growth following the pandemic. With international arrivals projected to reach 36 million in 2024 and 41.6 million by 2025, the legalisation of casinos could further accelerate this recovery. Popular destinations like Pattaya are expected to benefit significantly, cementing their status as leading tourist hotspots.
The move aligns with broader efforts to enhance Thailand’s infrastructure and diversify its entertainment offerings, ensuring the country remains competitive in an evolving global market. As Pisano observes, the introduction of regulated casino gaming has the potential to not only boost tourism revenue but also elevate the overall quality of Thailand’s entertainment sector.
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