Thailand’s entertainment complexes law lacks clarity: professor

Economics expert warns Thailand may be building another Atlantic City if it does not have a clear idea on the law’s ‘principles and rationale’

The Council of State’s six points of concern over the government’s draft law on entertainment complexes may leave certain parties confused, especially those supporting the initiative and wondering about the council’s intentions. 

At the heart of the matter is the unclear distinction between a tourist-focused entertainment complex and a broader man-made attraction. This lack of clarity raises fundamental questions: Does an entertainment complex require additional components, such as casinos, to achieve its goals, or should it prioritise scale and structure?

Professor Chidtawan Chanakul from Kasetsart University’s Faculty of Economics suggested that the council’s concerns likely indicate that the government is unclear on the “principles and rationale” of the draft law. The law appears to pursue to conflicting goals – attracting tourists and addressing illegal gambling. 

Prof Chidtawan said that pursuing both objectives simultaneously requires careful consideration, citing Singapore’s example of entertainment complexes with casinos. Singapore enforces clear and strict regulations, including protective laws preventing citizens from gambling, focusing on maintaining order and minimising social harm. 

“In Thailand, there appears to be confusion about the draft law’s ‘principles and rationale’. It doesn’t clearly state whether the aim is to legalise gambling to address underground businesses or to prohibit citizens from gambling altogether while focusing on tourism,” he said. 

The professor also pointed out that entertainment complexes in other countries have shown mixed results, with many failing to resolve issues related to gambling, crime or tourism. One such example is Atlantic City in the US, which aimed to replicate Las Vegas and boost tourism. It opened its casinos in 1976, but it was ill-prepared and faced severe challenges, including illegal gambling, corruption among local politicians and a surge in prostitution. 

The lack of adequate planning and regulations led to the eventual failure of the project. Now, only eight or nine casinos remain open in Atlantic City and there are no tourists. A recent study by the New Jersey Department of Labour found that the casino workforce was largely low-skilled, unable to escape poverty and the industry contributed little to economic growth. The crime rates in the city have also remained unaffected. 

Hence, Chidtawan said, it is time for Thailand to define its goals clearly, establish strict regulations and prepare its infrastructure and workforce to mitigate risks. Without these measures, the initiative risks becoming another ill-concieved policy with significant social and economic costs.

(2025/01/22-00:00)