2025-01-18
Thailand is facing a historic decision that could fundamentally change the country’s tourism and economy. The government is proposing to create so-called “Entertainment Complexes” – areas that combine tourism, hotels, entertainment and, controversially, casinos. But what does this mean for the country, its people and the world? Let’s explore the issue in depth.
For an earlier introduction to the topic, read our article here: Thailand Entertainment Complex and the growth of tourism.
Background: Why casinos now?
Thailand has long been known for its natural tourist attractions such as beaches, mountains and national parks. However, competition is increasing from countries such as Singapore and the Philippines, which have developed “man-made destinations” to attract visitors. The government aims to create similar projects, with casinos as a small part of the whole (maximum 10% of the area), to increase tourism revenue and reduce the illegal gambling market.
Advantages: What can Thailand gain?
- Economic growth:
- The creation of the Entertainment Complex is expected to generate significant revenue through licensing fees, taxes and tourism. For example, each casino could pay an initial licensing fee of up to 5 billion THB, as well as annual fees of 1 billion THB.
- Reduced illegal gambling activity:
- By regulating the gambling market, the government hopes to reduce money laundering and other illegal activities linked to the gray economy.
- Job creation and infrastructure improvements:
- New employment opportunities and investments in infrastructure such as hotels, transportation and amusement parks can contribute to regional development.
Disadvantages: Risks and concerns
- Money laundering and organized crime:
- Critics worry that casinos can be used for money laundering, especially by international criminal networks. Effective control mechanisms are crucial.
- Social and cultural challenges:
- Gambling can contribute to increased debt and social problems for vulnerable groups. Thailand also has strong cultural and religious traditions that may clash with the casino concept.
- Corruption risks:
- Critics point to previous examples where similar projects have become breeding grounds for corruption, which could undermine public trust.
Comparisons with other countries
Singapore is a prime example of a country that has successfully implemented a casino-integrated system. Marina Bay Sands generates significant revenue while strict regulations control gaming operations. But Thailand has a different starting point with an already strong nature-based tourism industry.
Successful Entertainment Complexes in Other Countries
- Singapore (Marina Bay Sands):
- Opened: 2010
- Contents: Casino, hotel, shopping, entertainment center.
- Contribution to GDP: Over 2% annually.
- Macau (Cotai Strip):
- Known as the “Las Vegas of Asia”.
- Content: Casino, luxury hotel, conference facilities.
- Generates more than 30 billion USD annually.
- Philippines (Entertainment City):
- Opened: 2013
- Content: Casino, theaters, amusement parks.
- Creating tens of thousands of jobs and significant tourism revenue.
- United States (Las Vegas):
- Iconic entertainment destination with global recognition.
- Generating over 6 billion USD per year in gaming revenue.
Can this be sustainable?
The key to success will be regulation and supervision. The government plans to create a new body to control the operation and ensure that everything is done according to the law. Casino areas will be restricted and carefully controlled to minimize risks.
Conclusion
The introduction of casinos in Thailand is a complex issue with great opportunities but also serious risks. If the project is implemented with the right balance between economic and social aspects, it can become an important engine for economic development. However, without strict controls, the negative effects can prevail.
Thailand faces a choice – a chance to create a new tourist attraction and reduce the illegal gambling market, or risk creating new problems for society. The future will tell which path the country chooses.
Thailand Info will continue to monitor developments on this issue and provide both news and analysis to keep our readers informed of the latest developments. Stay up to date by following us here and on social media: Thailand Info.
Text: The editorial staff
Image license: Peter, Lomas-Pixabay, original image