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Thailand’s Casino Law Set for Cabinet Review by End of 2024

Thailand-Set-to-Transform-Tourism-and-Entertainment-with-New-Integrated-Resort-ActThailand’s move toward legalizing casinos is making progress, with the draft law on entertainment complexes expected to be presented to the cabinet by the end of this year, according to Deputy Finance Minister Julapun Amornvivat. The bill, which seeks to regulate and legalize casino resorts within Thailand, will then move to the House of Representatives for parliamentary review during its upcoming session, set to reconvene in mid-December 2024 and continue until April 2025.

Strong Public Support for the Bill

The proposed law, which has been in development for several months, recently underwent a public hearing as required by Thailand’s constitution. During this consultation process, it garnered 82% approval from participants, marking a significant milestone for its advancement. This is the first time this figure has been made public, indicating a solid backing for the law’s implementation.

The draft law aims to establish legal casino resorts as part of broader entertainment complexes, a first for Thailand. These complexes are expected to stimulate significant economic growth, both in terms of foreign tourism and local employment. According to a study conducted by the Fiscal Policy Office (FPO), the establishment of these entertainment venues could increase the number of foreign tourists by an additional 5 to 20%, raising per capita spending from THB40,000 (approximately $1,183) to THB60,000.

Economic Benefits and Employment Opportunities

The economic potential of these entertainment complexes extends beyond tourism. Julapun highlighted that the construction phase alone would attract substantial investment, while the operation of the resorts is expected to create numerous jobs for Thai citizens. The deputy minister expressed hope that local residents would be employed within the entertainment complexes and emphasized the need for training programs to ensure that employees possess the necessary skills.

In addition to boosting the economy through tourism and job creation, the draft law also seeks to regulate how these complexes operate. Private investors interested in these projects must meet certain criteria, including a minimum registered capital of THB10 billion (around $300 million). Proposals will be evaluated based on the types of projects they offer and their potential to contribute to Thailand’s tourism industry.

Adjustments After Public Hearing

Following the public consultation, the draft legislation received 45 recommendations for improvement. One of the key suggestions was to rename the bill from the “Entertainment Complex with Casino” to the “Integrated Resort Act,” to better reflect the variety of amenities these complexes will provide. Participants also recommended expanding the number of allowable entertainment activities from four to seven, which would include cultural showcases that highlight Thai heritage and enhance the resorts’ appeal.

Another significant recommendation pertained to the ownership structure of these complexes, with proposals advocating for Thai nationals to hold between 30% and 51% of the shares. The duration of licenses was also a key point of discussion, with suggestions to either reduce the validity from 30 years to 10 years or, alternatively, extend it to 50 or 60 years. Furthermore, it was proposed to limit the number of entertainment complexes to between three and seven, strategically located in popular tourist destinations such as Phuket, Chiang Mai, and Hua Hin, rather than in Bangkok.

Licensing and Regulations

The draft law also sets forth various regulations for both operators and Thai citizens wishing to access the casino facilities. The law proposes that the entry fee for Thai nationals should not exceed THB5,000 (approximately $148) per visit. Additionally, licenses for operating the entertainment complexes will be issued for a period of 30 years, with an option for renewal every 10 years. The initial licensing fee is set at THB5 billion (about $148 million), with an annual maintenance fee of THB1 billion ($30 million).

The draft law is a major step forward in Thailand’s efforts to legalize and regulate casino operations within its borders. By offering significant economic opportunities and attracting private sector investment, the bill aims to position Thailand as a major player in the global entertainment and tourism industry. Once the cabinet and parliament finalize the legislative process, Thailand could see its first legal casinos within a few years, further enhancing its appeal as a tourist destination.

Source:

Casino Law Expected to Be Sent to Cabinet This Year, bangkokpost.com, October 24, 2024.

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Gambling Act Review White Paper a Year Later: What Is Done and What Are Plans for the Future

On April 27, 2023, the Gambling Act Review white paper was published in the UK, and everyone hoped it would be greatly helpful when it comes to gambling regulation. However, here’s what happened after one year.

Changes in the law

gambling_act_review_white_paperThe GB Gambling Commission discussed online and land-based casinos, as well as horse racing. The consultations about the Commission’s proposals began in July, and its main focus was promoting sustainable and safe gambling, as well as conducting affordability checks.

The discussion about the relationship between operators and players was one of the main topics. According to Victoria Reed, a Founder of Better Change, the standards are already high, and in order to develop more strict regulations, the balance is needed. She said: “This is already a heavily regulated industry so I would argue that standards are generally pretty high when compared with other industries. But the nature of our business is heavily influenced by technology and customer trends – therefore, there is never time to rest on our laurels and think we have got it all figured out.”

Matt Zarb-Cousin, Gamban’s co-founder and director of external affairs, is positive that operators will benefit from improving the relationship, and in order to do that, they would have to comply with a change of standards.

The sustainability and safety of gambling must be priorities, even from a preventive standpoint. Reed commented on that: “We see “safer gambling” very much as the practice of gambling safely. Therefore, the act of restricting, limiting, banning, blocking, and even stigmatizing gambling has no place in safer gambling. As a result of this, we see very little in the white paper that for us constitutes safer gambling – instead, we feel the measures such as stake limiting and financial risk checks are more aligned to player protection.”

Preventing problem gambling and major concerns

Better Change keeps supporting Positive Play and tries to prevent problem gambling before the issue occurs. Proposals from the white paper comply with that, but in order to work, they have to be carefully implemented.

The losses have to be limited since the players who lose more are at higher risk of becoming addicts, so setting the limits is one of the best ways to prevent it.

Even the operators would benefit from that, since if the customer loses all their money, they would have to be self-excluded and they would never get back. The Commission is ready to set up the affordability checks, but it will have to be done case-by-case in order to work. On top of that, a statutory levy on gross gambling yield will be imposed, and it will be 1%.

Zarb-Cousin commented on that: “Affordability checks, if they’re done properly, and the levy will make a big difference. The quantity and the resources that will be able to go into treatment and prevention campaigns – all of this will make a big difference.”

The main issue about the proposals from the white paper is funding. There are some funds donated for research, education, and treatment of problem gambling, but it seems the only way to get funds is a mandatory levy.

However, Zarb-Cousin hopes that the suggested changes can be implemented by October 2024, including the pilot program for affordability checks, which should be finished by then. Next year, the new levy system is supposed to be implemented, two years after the release of the white paper.

However, Melanie Ellis, a gambling regulatory lawyer and partner at Northridge Law LLP, is concerned that the new regulations could drive the players to illegal operators. She said: “There is a risk that some proposals, such as the stake limit for online slots and restrictions on bonuses and incentives, could lead to a significant increase in the number of customers turning to unlicensed operators, where they may not be offered tools to control their gambling or interventions if they display indicators of harm.”

However, it’s clear that the white paper increased the awareness of problems in the industry and was a significant step towards solving the majority of them. However, a lot of work is ahead of the UK regulators, and only years of hard work can result in complete change. Sustainability remains the main focus.

Source: “Gambling Act review white paper: One year on”, iGamingBusiness. April 24, 2024.

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Playtika Halts Strategic Review, Initiates Dividend

Shares of mobile games developer Playtika (NASDAQ: PLTK) slid Monday after the company reported fourth-quarter earnings per share (EPS) that missed Wall Street estimates, and as the firm said it’s halting a strategic review.

Playtika
Playtika is highlighted at the Nasdaq market site in January 2021. The company is pausing a strategic review and initiating a quarterly dividend. (Image: Nasdaq)

In the final three months of 2023, Playtika earned 10 cents per share on revenue of $637.9 million. Analysts expected earnings of 17 cents per share on sales of $628.98 million. Nearly two years to the day after the company announced a strategic review, which could have included a sale, Playtika paused that effort, citing “ongoing uncertainty in Israel and Ukraine.”

Playtika is based in Israel and has operations in Ukraine. Playtika was one of the first to offer free-to-play social games on social networks and mobile devices, and has over 35 million monthly users. Its well-known games include Bingo Blitz, Caesars Slots, Slotomania, and World Series of Poker (WSOP) Social.

With the strategic review on hold, the mobile games creator is taking a different approach, telling investors it will pursue mergers and acquisitions of its own.

Playtika Capital Deployment Plans

Playtika concluded 2023 with $1.02 billion in cash and cash equivalents compared to a current market capitalization of $2.52 billion, indicating the stock may be undervalued following a 28% decline over the past year. The company’s free cash flow jumped to $436.4 million from $383.7 million in 2022, paving the way for opportunistic mergers and acquisitions and shareholder rewards.

In the past year, we’ve honed our focus on efficiency and streamlined our operations, adapting to evolving industry dynamics in mobile gaming,” said CEO Robert Antokol in a statement. “Now, with a solid foundation, 2024 marks our shift towards reinvestment — pursuing M&A opportunities with a strategic intent of capital deployment.”

Playtika said it will commence a quarterly dividend of 10 cents a share on April 5 to shareholders of record as of the close of business on March 22. The firm added it could consider a share repurchase program in the future. Based on the price of the stock at this writing, dividend yield would be 2.74%.

President and COO Craig Abrahams added the company will spend $600 million to $1.2 billion on mergers and acquisitions over the next three years.

Playtika’s 2024 Outlook

The gaming company’s tepid 2024 guidance may have also been a contributing factor in the stock sliding on Monday. Playtika said it expects 2024 sales of $2.52 billion to $2.62 billion on earnings before interest, taxes, depreciation, and amortization (EBITDA) of $730 million to $770 million.

“Capital expenditures expected to be between $110 million to $115 million, which includes $17 million in accrued capital expenditures from Q4 FY2023 that will be paid in FY2024,” according to the firm.

In the fourth quarter, average daily paying users rose 2.3% on a quarter-over-quarter basis, but declined 2.2% year over year.

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