Thailand took the first step toward legalising casinos, as the government looks to attract high-spending tourists to support South-east Asia’s second-largest economy while also checking revenue leak from illegal gambling.

The nation’s 500-member House of Representatives on Thursday (Mar 28) voted in favour of a study by a panel of lawmakers to allow casinos to be housed within large entertainment complexes. A total of 253 out of 257 lawmakers present voted in favour of the plan. 

Deputy Finance Minister Julapun Amornvivat said the study will be forwarded to the Cabinet for a decision on whether legalising casinos is “suitable for the nation.”

Thailand is the latest nation to consider competing for a pie of the global casino industry, which IBIS World estimates generated US$263.3 billion in revenue last year. The United Arab Emirates set up a framework for legalised gaming in September, with the emirates of Abu Dhabi and Ras Al Khaimah seen as frontrunners to introduce casinos.

Galaxy Entertainment Group and MGM Resorts International have been studying potential opening of casino resorts in Thailand as a hedge against uncertain prospects in Macau. Closer home, Singapore and Philippine casino operators are putting up a challenge to Macau, which garnered US$22.75 billion in casino revenue last year.

The study found that Thailand can lift tourism revenue by about US$12 billion by legalising casinos and housing them within large entertainment complexes. Average tourist spending may surge 52 per cent to US$1,790 per trip once the entertainment hubs are built, netting additional earnings of as much as 448.8 billion baht (S$16.6 billion), according to the study.

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Prime Minister Srettha Thavisin, who has been aggressively pushing policies to attract foreign investments to Thailand, had earlier on Thursday backed the plan to legalise what he called “the grey economy” for better oversight and proper tax collection.

“It’s time for our society to stop hiding the gamblings, which are out there, and just properly regulate and take care of them,” he said. “I am not sure when the law will get approved and an entertainment complex can start operation. It will probably take some time. During the interim period, we need to tackle those illegal activities.”

Though most types of betting are illegal in Thailand – a majority Buddhist and conservative society – any opening of casinos will be in line with its recent embrace of a more liberal landscape to revive its tourism industry from the pandemic blow. In 2022, Thailand became the first country in Asia to decriminalise cannabis though it’s now moving to ban its recreational use, and is set to become the first in South-east Asia to legalize same-sex marriages. BLOOMBERG