Thailand Likely to Implement Strict Entry Requirements for Local Gamblers

Thailand sets out to implement unique safeguards for locals from gambling harm with a strict proposal for casino access in the proposed integrated resorts (IRs). Under the new entry provided by the Office of the Council of State, Thais would have to meet high requirements, such as holding at least TBH50 million (US$1.5 million) in fixed deposits for at least six months. Locals would also choke up a significant TBH5,000 (US$148) entry fee.

Paetongtarn Shinawatra’s government explains that the regulations aim to limit local participation, mitigating the negative social impacts of gambling, like addiction. The proposed standards set up the gaming establishments to compete with global destinations rather than cater to the local population.

Analysts’ Concerns

Most gambling forms are banned in Thailand, but illegal operations are rife. Domestic gamblers were considered a significant attraction for foreign investors, and the strict entry barriers could influence their interest. The draft could morph Thai casinos into foreigner-only regimes.

Singaporean gaming consultant Daniel Cheng stated that the restrictive requirements could limit the local population, making the market less attractive to regional and international casino operators. He noted, “A further 50 million baht bank deposit requirement would render Thai casinos no better than foreigner-only regimes like South Korea’s.”

Local Skepticism

Most of the Thai public remains hesitant to embrace the proposed casino regulations. Most concerns revolve around the potential rise of gambling addiction and household debt. A recent study by the National Institute of Development Administration (NIDA) revealed that most locals oppose casino legalization, highlighting a conflicting stance with PM Shinawatra’s administration.

Meeting the Region’s Competitive Benchmark

Thailand seeks to compete with other leading gambling destinations in the region, such as Singapore, which has caught the eye of industry titans like Las Vegas Sands Corp. However, the new legislation would carve out a unique niche that could benefit or negatively impact the plans.

The proposed exclusivity could add to the venues’ appeal as global luxury destinations, but it risks excluding most of the local consumer market. In a country where per capita gross domestic product (GDP) is about US$7,300, according to government reports, the casino entry demands effectively prohibit swathes of the population from casino access.