Any hopes of Thailand’s casino bill being revived have been extinguished after its Prime Minister, Paetongtarn Shinawatra, was removed by the country’s Constitutional Court.
A draft bill to legalise casinos as part of integrated resorts was withdrawn in July following political turmoil caused by a leaked phone call between Shinawatra and Hun Sen, Cambodia’s former leader, as tensions on the border between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.
Now, the Constitutional Court’s judges voted six to three against Shinawatra, ruling that her actions had violated ethical standards expected of her office.
Continued disruption
As mentioned, the now-withdrawn bill, which was championed by Shinawatra, sought to introduce casinos as part of integrated resorts designed to drive economic growth by attracting international tourism.
The tourist hotspots of Bangkok, Chonburi, Chiang Mai and Phuket were all chosen as regions to host the new venues, which would have held a maximum of 10% of floor space for gambling activities.
However, the move to regulate the sector was met with disapproval among Thailand’s public and opposition parties.
Data released in July by the National Institute of Development Administration (NIDA) found that 57% of respondents were against entertainment centres and casinos, echoing previous data that recorded the disapproval rate at 59%.
As a result, the leaked phone call, which sparked Shinawatra’s downfall, offered further ammunition for those against her desire to pass the casino bill.
In May, the death of a Cambodian soldier at the border escalated tensions between the country and Thailand.
Shinawatra apologised and defended her conversation with Hun Sen, in which she was heard criticising the Thai army, claiming that her comments were part of a strategy to ease tensions.
However, she was suspended by the Constitutional Court on 1 July before being removed, calling a halt to the passage of the bill.
What’s next?
Paetongtarn is the latest member of the Shinawatra political dynasty to be ousted from leadership, ending her tenure as leader that began in August 2024.
Her father, Thaksin, was removed by a military coup in 2006, while her aunt, Yingluck, was also removed by the Constitutional Court in 2014.
Overall, Thailand has experienced significant political uncertainty in modern times. Since 2008, five Prime Ministers have been removed from office by the court.
Both father and daughter have long been on the side of bringing gaming to Thailand, extolling the economic benefits of regulating the sector. Thaksin Shinawatra has also previously called for Thailand to regulate online gambling, stating that the country is losing out on income to the black market.
In contrast, the Bhumjaithai party, which has claimed it has enough support from other parties to get the votes needed to form a new government, has consistently voiced opposition to the sector.
The party’s leader, Anutin Charnvirakul, previously stated that a decline in Chinese tourism to Thailand was primarily caused by the Shinawatra’s Entertainment Complex policy.
Therefore, it appears unlikely that a similar casino bill will see the light of day under the party’s prospective leadership.
iGaming Expert insight: Amid the political unrest, Cambodia’s Star Vegas Resort experienced a 62% drop in visitation, underscoring the significant appetite of Thai citizens to play in land-based casinos.
Although Thailand’s political parties appear opposed to regulating the sector, their opinion may change as they consider the economic potential of bringing casinos to the country. Prior to the bill’s end, MGM Resorts had stated its plans to invest $3bn to $5bn in Bangkok.
Meanwhile, reports suggest that Thailand’s illegal gambling industry generates $33.2bn per year, a comparable figure to Australia’s regulated market, which contributes approximately $1.2bn in tax each year.
