In a decisive move that could reshape Thailand’s economic landscape, the Cabinet, under the leadership of Prime Minister Paetongtarn Shinawatra, approved the modified draft Entertainment Complex Act on March 27, 2025. Designed to attract foreign investment, enhance tourism, and generate long-term national revenue, this landmark legislation marks a strategic pivot toward reviving the nation’s “fun economy” through world-class entertainment infrastructure. The Act now heads to the House of Representatives for further deliberation, but its economic and policy significance is already a subject of national and international interest.
A Strategic Response to Thailand’s Growth Stagnation
For decades, tourism has been one of Thailand’s most vital economic engines. However, the COVID-19 pandemic triggered a steep contraction in the industry, revealing deeper vulnerabilities in the country’s growth model. Over the past 30 years, Thailand’s economic growth has averaged just 2% per annum—a pace too slow to raise living standards sustainably or meet the expectations of its evolving economy.
The proposed Entertainment Complex Act is a response to this urgency. In alignment with the Prime Minister’s September 2024 policy address, which underscored the importance of “man-made destinations” to enhance Thailand’s global competitiveness, the legislation seeks to integrate leisure, entertainment, and regulated gaming into a modern economic strategy.
Key Features of the Entertainment Complex Act
At its core, the draft legislation aims to regulate and oversee entertainment complexes in a way that ensures economic benefits while mitigating social risks. Key provisions include:
✓ Casino Operations Capped: Gaming activities are restricted to only 10% of an entertainment complex’s total area, with the majority space allocated for tourism-enhancing venues such as luxury hotels, amusement parks, sports arenas, and concert halls.
✓ Investment Requirements: Each complex must attract over THB 100 billion in investment, ensuring only serious, well-capitalized investors with transparent funding sources participate.
✓ Two-Tier Governance Structure:
⦾ The Policy and Strategy Committee, chaired by the Prime Minister, will set nationwide strategies and investment zones.
⦾ The Executive Committee, led by a Prime Minister-appointed director, will manage licensing and regulatory enforcement.
✓ Robust Licensing and Social Safeguards: From mandatory fixed deposits for Thai nationals who wish to enter casinos (minimum THB 50 million for at least six months) to strict AML protocols and zoning requirements, the Act establishes a comprehensive control mechanism.
✓ Environmental and Community Impact Reviews: Public hearings and mandatory social and environmental assessments will be prerequisites for approvals, signaling a participatory approach to development.
Public Reaction: Supportive but Divided
While early surveys indicate broad public support—over 80% of initial respondents backing the initiative—the draft Act has ignited a nationwide debate. Proponents see it as a pragmatic way to generate much-needed revenue and employment, particularly in post-pandemic Thailand. Critics, on the other hand, warn against moral and social hazards. Over 100 civil society organizations have voiced concerns that despite its diverse offerings, the complex’s primary revenue driver will inevitably be casino operations.
Key demands from opposition groups include:
✓ A transparent national referendum prior to enactment.
✓ Expanded public participation in drafting the final law.
✓ Stronger anti-corruption and crime prevention measures.
Unlocking Investment, Tourism, and Employment
If implemented effectively, the Entertainment Complex Act is expected to:
✓ Stimulate FDI in the entertainment and tourism sector.
✓ Create thousands of new jobs across hospitality, logistics, and event management industries.
✓ Elevate regional economies, driving land value appreciation and business growth in adjacent areas.
✓ Increase tax revenues, which can be channeled toward healthcare, education, and social equity initiatives.
Yet, such outcomes will only materialize with robust oversight, strict licensing, and a commitment to sustainable development practices.
Balancing Progress and Protection
The road ahead will require balancing optimism with caution. Entertainment complexes, if well-regulated, can become global attractions that mirror the success seen in destinations like Singapore and Macau. But the Thai government must remain vigilant—ensuring strong ethical governance, preventing crime and exploitation, and preserving local cultures.
The Ministry of Finance, the Anti-Money Laundering Office, and other oversight agencies will play critical roles in ensuring that the economic benefits do not come at the expense of public trust or societal wellbeing.
What Comes Next?
As the bill progresses through Parliament, expect further refinements in regulatory language, additional stakeholder engagement, and clear roadmaps for investor participation. Once enacted, the real work—site selection, infrastructure development, and compliance mechanisms—will begin.
Thailand’s Entertainment Complex Act is more than a law. It is a signal of intent—a vision to reimagine tourism, empower local economies, and future-proof the nation’s development model. If executed with care and inclusivity, it has the potential to be one of the most transformative policies of the decade.
Author’s Note:
Mahanakorn Partners Group (MPG) advises multinational corporations and institutional investors on regulatory compliance, infrastructure development, and investment strategies across Thailand. For further guidance on the Entertainment Complex Act or investment structuring in Thailand, please contact us at: [email protected]