Following our previous article on “Thailand Unveils Draft Entertainment Complex Bill: A Path to Casino Legalization”, Thailand’s Cabinet has approved the Draft Entertainment Complex Act (“Draft Bill”), marking a significant milestone in the country’s efforts to boost its tourism sector and diversify its entertainment offerings. The Draft Bill, which aims to regulate and promote investment in entertainment complexes—including casinos—is now set to be submitted to the Parliament for further deliberation. This development comes as Thailand seeks to strengthen its position as a leading global tourist destination, with tourism playing a crucial role in the country’s economy.

The approval of the Draft Bill follows a public hearing where the majority of participants expressed support for the initiative. However, the Draft Bill has also sparked debates and concerns, particularly from the Office of the Council of State, which has raised questions about its alignment with government policies and its effectiveness in addressing illegal gambling.

Key Features of the Draft Bill:

The Draft Bill introduces a comprehensive framework for the establishment and operation of entertainment complexes, which are defined as integrated venues that include a casino alongside at least four other types of businesses. Below are the key aspects of the Draft Bill:

Definition and Scope of Entertainment Complexes

Under Sections 3 and 41 of the Draft Bill, an entertainment complex must include a casino and at least four additional businesses, such as shopping malls, hotels, restaurants, nightclubs, pubs or bars, sports and entertainment facilities, yacht and cruising clubs, gaming establishments, swimming pools, amusement parks, OTOP centers (promoting local Thai products) and/or other businesses as prescribed by the Policy Committee.

Each business within the complex must comply with its respective laws and regulations. However, operational details such as hours of operation, alcohol sales, and designated smoking areas will be determined by the Policy Committee.

Casino Regulations

The Draft Bill defines a casino as a facility designated for gambling activities within a specific location. Key regulations include:

Designated Areas: Casinos will operate only in zones approved by the Policy Committee.
Debt Enforcement: Debts arising from casino activities without any formal agreement will be legally enforceable.
Online Gambling: License holders are prohibited from facilitating online gambling beyond the physical premises of the complex.
Advertising Restrictions: License holders cannot advertise or promote casino activities unless explicitly permitted by the Policy Committee.
Loans to Gamblers: License holders may extend loans to gamblers, subject to the Policy Committee’s regulations.

Licensing Framework

Licenses for operating entertainment complexes will be valid for 30 years, with an initial fee of 5 billion THB and an annual fee of 1 billion THB. License holders must undergo performance evaluations to ensure compliance with approved plans. Renewals will be considered in 10-year increments, subject to additional fees.

Eligibility Criteria

Applicants must meet the following criteria:

Be a limited or public limited company registered under Thai law.
Have a minimum paid-up capital of THB 10 billion.
Public limited companies holding licenses will be exempted from the restriction of the Foreign Business Act (FBA) and will not require a Foreign Business License (FBL). However, limited companies with more than 50% foreign ownership must comply with the FBA unless further exemptions are announced.

Operational Obligations

License holders must adhere to the operational plans submitted during the application process. Any deviations require prior approval from the Policy Committee. Failure to comply may result in license revocation.

Designated Locations

The locations for entertainment complexes will be specified in a forthcoming Royal Decree. Unofficial reports suggest potential sites in major tourist destinations such as Bangkok, Pattaya, etc.

Concerns from the Office of the Council of State:

Despite the Cabinet’s approval, the Office of the Council of State (“Office”) has raised several concerns about the Draft Bill:

Alignment with Government Policies: The government’s seventh policy emphasizes creating man-made tourist attractions, such as amusement parks and shopping malls. The Office questions whether enacting a specific law for entertainment complexes aligns with this broader vision.
Redundancy and Legal Conflicts: The Draft Bill’s inclusion of businesses already regulated by specific laws (e.g., hotels and restaurants) may lead to redundancy and interpretative conflicts.
Unclear Intentions: The Draft Bill’s objectives remain ambiguous. While it claims to address illegal gambling, the Office argues that existing laws, such as the Gambling Act B.E. 2478 (1935), could suffice. Alternatively, if the goal is to promote tourism, the bill should focus on creating integrated tourist destinations rather than solely regulating casinos.
Public Perception and Communication: The Office emphasizes the need for clear communication with the public to avoid confusion and ensure transparency.

Minister of Interior’s Stance on Gambling:

Adding another layer to the discussion, the Minister of Interior, who oversees gambling laws, has indicated that certain forms of gambling may be permitted without waiting for the Draft Bill to pass. This statement suggests a potential shift in the government’s approach to gambling regulation, possibly allowing limited gambling activities under existing laws while the Draft Bill undergoes further review.

Next Steps:

With the Cabinet’s approval, the Draft Bill will now be submitted to the Parliament for further deliberation. During this process, amendments may be made based on feedback from relevant authorities. Additionally, the Policy Committee will issue further announcements to clarify operational details, such as hours of operation, alcohol sales, and other regulatory aspects.

Conclusion:

The approval of the Draft Bill by the Cabinet marks a significant step toward diversifying the country’s tourism offerings and addressing the issue of illegal gambling. However, concerns raised by the Office of the Council of State highlight the need for clarity, alignment with government policies, and effective communication with the public. As the Draft Bill moves through the legislative process, stakeholders must remain vigilant and prepare for potential changes. In the meantime, the Minister of Interior’s remarks suggest that the government may explore interim measures to regulate gambling activities, signaling a dynamic and evolving landscape for Thailand’s tourism and entertainment sectors.

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