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Thailand: Thai Government to dust off the Entertainment Complex Bill

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In brief

The Entertainment Complex Policy Parliamentary Committee (“Parliamentary Committee“) has considered and endorsed the draft Entertainment Complex Bill, B.E. … (“Entertainment Complex Bill“), a concept initiated many years ago. The Entertainment Complex Bill aims to facilitate the establishment of entertainment complexes that include casinos. This has been passed to the House of Representatives in March 2024.

In more detail

To date, based on the publicly available information, the Entertainment Complex Bill and its sub-regulations should include the following matters and requirements.

  • License requirements

The Entertainment Complex Bill outlines specific requirements for business operators seeking a license to operate an entertainment complex business (i.e., casino license). This may include (i) being an entity registered in Thailand, and (ii) a minimum registered capital of THB 10,000 million. The casino license will be valid for 20 years and can be renewed every five years.

  • Minimum investment requirements

The Entertainment Complex Bill may require business operators to invest at least THB 100,000 million in the entertainment complex business. Additionally, there may also be different types of casino licenses available, depending on the size of the investment.

  • Location of the entertainment complex

Initially, the Parliamentary Committee proposes that entertainment complexes should be located (i) within a 100-kilometer radius of specific international airports in Thailand, (ii) in designated tourist provinces, and (iii) in designated border provinces. However, this location requirement is subject to public hearings of the relevant locals.

  • Taxes

The Parliamentary Committee has also proposed a tax rate of 17% on the gross gambling revenue (GGR) for entertainment complex business operators. However, this is yet to be included in the Entertainment Complex Bill.

  • Casino entry levy

The Parliamentary Committee also recommends including a casino entry levy into the Entertainment Complex Bill. This is to screen and deter vulnerable groups of gamblers from entering the casino. However, the casino entry levy should be set at a reasonably affordable amount.

Although the Entertainment Complex Bill is still in its early stages and may take several years to finalize, it offers significant opportunities for business operators. These opportunities extend not only to casino business operators but also to those who recognize the potential in businesses that should be located near the casino.

We will keep monitoring the development of the Entertainment Complex Bill and will promptly publish newsletters when there are significant developments. Should you have any questions, please contact our team.

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Yuthana is a partner and co-head of the Investigations, Compliance & Ethics Practice Group at Baker McKenzie, Bangkok. He is an acknowledged leader in the field of government procurement and contracts, and public-private partnership (PPP) projects. One of his most notable areas of expertise is advising on court cases that challenge decisions made by government authorities, or address disputes arising from procurements, bid rigging, administrative orders and contracts, as well as arbitration proceedings. Prior to joining the Firm, he was a judge advocate, serving in the Royal Thai Navy for more than five years, becoming well versed in government procurement and contracts, and negotiation and investigation skills. His roles and responsibilities covered a wide range of issues dealing with administrative law, government contracts and civilian and military personnel law, acting as an inquiry official legally empowered to conduct investigations. His responsibilities also extended to the provision of legal advice in the area of procurements, terms of reference (TOR), and contracts in procuring armaments and naval ships, as well as the law on the use of navally supervised state-owned land, including drafting rules and regulations and negotiating international contracts for the Royal Thai Navy.

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Napatorn joined Baker McKenzie in 2010. She is active in the consumer goods and retail and healthcare and life sciences industries as well as investigations, compliance and ethics and mergers and acquisitions practices.

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Praween Chantanakomes is the Head of Regulatory Affairs Department in Baker McKenzie, Bangkok office.

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Haruthai Chaisanee is an Associate in Baker McKenzie Bangkok office.

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Pongtorn Jittapinijmas is an Associate in Baker McKenzie Bangkok office.

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Woraphan Khunakornkorbkij is a Legal Professional in Baker McKenzie, Bangkok office.

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