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Articles
Cabinet Withdraws Draft Law on Casinos and Entertainment Complexes
On 8 July 2025, the Cabinet of Thailand passed a resolution to withdraw the Draft Entertainment Complex Business Act (“Draft Act”) from the legislative agenda and formally requested withdrawal of the Draft Act from consideration by the House of Representatives. The following day, the House of Representatives approved the Cabinet’s request by a vote of 253 in favor and 66 against, thereby officially striking the Draft Act from the legislative process.
This development is noteworthy for stakeholders in the tourism, hospitality, and entertainment sectors, as well as legal and regulatory advisors. Key aspects of the decision and matters to consider are summarized below.
1. Reasons for Withdrawal
The government asserts that its decision to withdraw the Draft Act was driven by two key considerations:
(i) Change to the Composition of the Cabinet
After a significant reshuffle, nearly half of the Cabinet’s ministerial positions now are held by new appointees. Given this transition, it was deemed appropriate to allow the reconstituted Cabinet sufficient time to review and reconsider the Draft Act in its entirety.
(ii) Public Misunderstanding and Divergent Views
There remains substantial public misunderstanding and disagreement regarding the contents of the Draft Act. Although the government maintained that the legislation was intended to stimulate economic growth, attract investment, and support the development of new tourism infrastructure, and to serve as a transformative measure for the Thai tourism industry, ongoing domestic challenges—such as global economic uncertainty, border tensions, and social divisions—suggest that de-escalating potential conflict is a more prudent course of action at this time.
As mentioned above, a resolution approving the Cabinet’s request to withdraw the Draft Act was passed by the House of Representatives on 9 July 2025, with 253 votes in favor and 66 against. As a result, the Draft Act was officially dropped from further consideration.
2. Potential for Reintroduction of the Draft Act
Although the Draft Act has been withdrawn from the legislative process, it may be reintroduced in the future. Under Section 133 of the Constitution of the Kingdom of Thailand, a bill may be proposed by:
(i) the Cabinet;
(ii) at least 20 members of the House of Representatives; or
(iii) a group of at least 10,000 eligible voters, pursuant to the Act on the People’s Submission of Legislative Proposals B.E. 2556 (2013).
Endorsement by the Prime Minister also is required prior to submission of bills relating to financial matters to the Speaker of the House of Representatives.
Therefore, the Draft Entertainment Complex Business Act may be revived and resubmitted via the appropriate constitutional procedures, should its proponents decide to advance it at a later stage.
He advises on a wide range of merger-and-acquisition transactions, joint ventures, foreign direct investments, general corporate, international corporate finance, and restructurings. His expertise is advising, structuring and leading complex transactions both within and outside of Thailand. He regularly represents, among others, Japanese, Thai and international investors, international investment banks, international private equity investors, hedge funds and international corporations and financial institutions. His main areas of practice include public and private mergers and acquisitions (takeover rules), legal due diligence, joint ventures, fund raising, listings, block trades, stock exchange and securities exchange related laws, restructuring of shareholdings and general corporate advice. His additional areas of practice also cover banking and finance, renewable energy in Japan and Thailand, exchange control law, labor law, and debt restructurings. Before setting up the Bangkok office of Nishimura & Asahi in 2013, he worked with Linklaters for almost a decade. He is also a registered arbitrator of the Thai Arbitration Institute (TAI) with the areas of expertise in corporate M&A, joint venture, banking and finance, capital markets, debt restructurings and energy.