There was a very different sentiment surrounding conversations on the development of the regulation of Thailand casinos at this year’s SBC Summit in Lisbon compared to 12 months ago.
Political turmoil saw the bill withdrawn in July following a leaked phone call between Shinawatra and Hun Sen, Cambodia’s former leader, as tensions on the border between the two countries escalated.
Following the leak, Shinawatra was suspended as protestors gathered to call for her resignation. The Bhumjaithai Party responded by withdrawing from her coalition government, slashing her majority in Parliament.
Kicking off the Asia track, Lau Kok Keng, Head of Intellectual Property, Sports & Gaming, Rajah & Tan Singapore, lamented the downfall of the bill and the political convolution that saw it fall.
Kok Keng, who was a key figure in shaping the framework in Singapore, which is largely considered a gold standard in Asia, emphasised that it is vital to have a full understanding of Thai culture and history to gain a true understanding of why the bill failed.
He questioned whether it could have fallen due to the resistance of anything associated with the Shinawatra family, and whether rallying against the bill was purely down to rebellion over association with Shinawatra policies.
Newly appointed Prime Minister, Anutin Charnvirakul, recently dismissed the chances of gambling legislation being put back on the table, telling local media: “If someone says gambling can stimulate the economy, I’d say wait for another prime minister.
“Don’t wait for me, as I don’t agree with this approach. While I was the interior minister, I also said poker shouldn’t be allowed. But once I left, they went ahead with it. We must bring righteousness and justice back to our nation.”
Nonetheless, Kok Keng pointed out that this stance has drawn criticism from some who state it is based somewhat on contradictions, given he was one of the foremost advocates for the legalisation of marijuana in Thailand.
Furthermore, even as political turbulence reigns, Kok Keng highlighted his belief that the economic uplift of five potential casinos is too significant to ignore.
Providing a glimmer of optimism, he revealed that although right now, proposals and initiatives to establish casinos in Thailand seem to be all but dead, he believes “the story may not be finished”.
At the time of the bill being in limbo, speculation was also rife around the prospect of online gambling legalisation. However, there was a stark warning from Kok Keng that proponents should expect this bill to be met with even more vehement opposition than the land-based bill.
In a previous interview with iGaming Expert, Kok Keng underpinned that the struggles of the bill are a textbook example of how political instability, public opposition, and insufficient groundwork can derail even the best-intentioned and positioned legislative efforts.
The controversial decision to essentially exclude locals from the casinos as part of the bill was also key in fuelling a lack of public consensus over the development of the bill.
According to Kok Keng, Thailand’s experience is a cautionary tale from which emerging markets can learn several key lessons:
- Public Engagement is Essential: Early, transparent and sustained widespread public consultation is critical to building legitimacy and addressing public concerns. It would also counter attempts by opposition political parties seeking to capitalise on public anxiety about the social and moral risks of casino legalisation, to frame the government’s push for entertainment complexes as a reckless disregard for the democratic process and public opinion, and as an indication of the ruling party’s inability to govern effectively on divisive issues.
- Regulatory Clarity and Credibility: A detailed, credible, and stable regulatory framework must be in place before moving forward.
- Political Stability: Contentious reforms require a stable government with a clear mandate. The opposition politicians must place the country’s interests above their own and support reforms which benefit the country.
- Social Safeguards: Demonstrating a credible plan to manage social risks (problem gambling, crime, money laundering) is non-negotiable. It should be at the forefront of any move to introduce legalised casinos.
- Commitment to Executing a Long-Term Vision: Policymakers must show investors and the public that they are committed to executing their policies and fulfilling their commitments to implementing a strong, responsible gambling framework, and that such policies will not be subject to sudden reversals or political interference, let alone disruptions arising from military coups.
iGaming Expert Insight: It has been an incredibly volatile 12 months for the land-based casino regulation in Thailand, which can’t be denied. However, with elections looming and the economic benefits undeniable, there is a real hope that this bill will be put back on the table.
Given the nature of the market, I believe that stakeholders who set up shop in Thailand amidst speculation over the bill certainly shouldn’t be hasty in withdrawing their presence. The allure of the economic benefits of casinos and efforts to combat the black market could well prove strong for the government in the country.
