Thailand is on the verge of legalizing casinos, joining a regional trend as Southeast Asia experiences a gambling boom.
The Thai parliament has backed a study on the feasibility of casino resorts, paving the way for potential legislation within weeks, according to the deputy finance minister.
Currently, gambling in Thailand is largely illegal, with the exception of a government lottery and state-controlled horse racing. Enthusiasts must travel to neighboring countries like Cambodia and Laos, where casinos are legally accessible.
The proposed legislation is part of a broader wave of liberalization in Thailand, following the decriminalization of cannabis in 2022 and the legalization of same-sex marriage this month, according to The Economist.
The move aligns with a significant increase in gambling facilities across Southeast Asia. The Philippines, where gambling is legal, plans to build a new resort every other year, adding to its existing 43.
Singapore has extended the licenses of its two casino resorts. In Cambodia, the number of licensed casinos rose from 101 in 2021 to 174 in 2023. Altogether, including Myanmar, Laos, and Vietnam, the region now boasts around 350 casinos.
Economic growth and increased disposable income in Southeast Asia, particularly in China, have fueled the gambling industry. Chinese tourists, restricted by their own government’s crackdown on gambling, have been key drivers of this growth.
Macau, the only part of China where casinos are permitted, has seen a decline in gaming revenues due to tightened money-laundering controls and restrictions on junket agencies. This has made Southeast Asian countries more attractive to Chinese gamblers.
Singapore’s integrated resorts, which generated $4 billion in 2023, and the Philippines, with nearly identical revenue figures, highlight the economic benefits beyond gaming revenues. These casinos have boosted employment, construction, and tourism.
Thailand, welcoming 12 million tourists this year, with nearly 20% from China, could see a significant economic impact from casinos.
The study presented to the Thai parliament suggests that casinos could increase average tourist spending by 52%, potentially boosting GDP growth by one percentage point. The real-estate industry predicts that each new casino complex could create at least 30,000 jobs.
Taxes on casino revenues have been crucial in other Southeast Asian countries. In the Philippines, they accounted for approximately 2% of government receipts in 2023, with half allocated to healthcare.
In Singapore, betting taxes contributed 2% of government revenue. These funds could help Thailand, where social spending is expected to rise sharply due to an aging population.
Despite the potential economic benefits, there is domestic resistance in Thailand. A 2021 opinion poll revealed that nearly half of Thais oppose legalizing gambling due to concerns over crime and morality. The UN’s regional drugs agency has linked casinos to rising organized crime in Southeast Asia.
Thai officials look to Singapore as a model, where strict entry fees for citizens and investments in rehabilitation and education have reduced the population diagnosed with gambling problems from 4% in 2005 to 1.2% in 2020.
Ultimately, the success of casinos in Southeast Asia largely depends on Chinese tourists. Despite President Xi Jinping’s efforts to curb cross-border gambling, Chinese patrons continue to frequent Southeast Asian casinos. As long as this trend persists, the region is likely to see sustained growth in gambling revenues.
