Casino Operator Proposes 5% Gaming Cap for Thailand Entertainment Complexes

 

A senior executive from Galaxy Resorts has called for gaming areas within Thailand's proposed Entertainment Complexes to be limited to just 5% of total floor space, as the company seeks to address public concerns whilst highlighting the broader economic benefits of such developments.

 

Kevin Clayton, chief executive of Galaxy Resorts Thailand, made the proposal during an interview with Thai media, arguing that even with such a small footprint, casinos could generate up to 80% of revenue to subsidise hotels, restaurants, retail outlets and other non-gaming attractions.

 

"Within the Entertainment Complex project, the casino footprint should be less than 10%, ideally around 5% of the total area," Clayton said. "The remaining 95% should comprise hotels, retail outlets, restaurants, exhibition venues, and other non-gaming attractions."

 

The proposal comes as the Thai government considers legislation for Entertainment Complexes, which would introduce regulated gambling to boost tourism and attract foreign investment. Mr Clayton emphasised the need for public understanding of the scale of investment opportunities, particularly from overseas sources.

 

 

Addressing Public Concerns

Clayton acknowledged prevailing public uncertainty, attributing it to incomplete information and what he described as "distorted information circulating, perhaps from various vested interest groups."
 

 

 

He stressed the company's commitment to responsible gambling measures, including age restrictions and exclusions for individuals with outstanding debts or those receiving social welfare benefits.

 

"The only way to ensure long-term sustainability is by implementing stringent conditions to guarantee people feel secure and are not harmed by gambling," he said. "Therefore, the prevention of problem gambling and the promotion of responsible gambling are paramount in our industry."

 

The executive outlined a three-pronged approach to responsible gambling: training staff to identify at-risk individuals, placing public awareness materials throughout premises, and collaborating with community groups that provide counselling and rehabilitation services.

 

 

Economic Arguments

Clayton cited reports suggesting approximately 60% of Thailand's adult population gambles regularly, with the market valued at about $US33 billion, yet generating no tax revenue or employment.

 

He argued that legalising and regulating gambling through Entertainment Complexes would address existing problems whilst creating economic benefits.

 

A 15% gambling tax would generate billions in government revenue, he claimed, whilst creating tens of thousands of jobs and boosting GDP.

 

"Thailand already possesses a gambling market, yet it yields no direct benefits—no income, no jobs, no support systems, no regulation," Clayton said. "So why oppose a change that could transform this problem into an opportunity?"
 

 

 

Tourism Ambitions

The proposal aligns with the government's tourism promotion goals, which aim to increase tourism's contribution to GDP from 20% to 30% and boost visitor numbers from 40 million to over 50 million.

 

Clayton noted that Bangkok's airports are set to handle over 150 million passengers by 2030, suggesting Entertainment Complexes would complement existing infrastructure investments.

 

"We anticipate investing billions in Thailand, and we must believe it will be successful for the nation, its people, and our shareholders," he said, whilst warning that overly strict regulations could diminish economic benefits.

 

Galaxy Resorts Thailand has expressed willingness to work with the government and regulatory bodies to establish appropriate conditions and build public confidence in the proposals.

 

The company operates as a publicly listed entity with governance standards similar to financial institutions, Clayton noted, emphasising the industry's investment in anti-money laundering measures and responsible gambling controls.