Thai casinos take unexpected hit from PM Paentongtarn Shinawatra's suspension

Thailand’s cabinet on Tuesday (July 8) dropped a bill to legalise casino gambling, dealing a blow to a key initiative of the embattled ruling Pheu Thai party and its recently suspended prime minister, Paetongtarn Shinawatra.

The so-called “entertainment complex” bill, which aimed to authorise casinos and position Thailand as a regional gambling hub, was seen as a flagship project for the Pheu Thai government. The party argued the bill would bring an existing underground gambling economy into the mainstream and help revitalise the country’s sluggish economy.

But the proposal has now been shelved, amid mounting political uncertainty after the Constitutional Court suspended Paetongtarn from office last week. She is under investigation for an alleged ethics violation related to her handling of a territorial dispute with neighbouring Cambodia.

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Bill pulled amid political vacuum

Government spokesperson Jirayu Huangsab said the cabinet decided to withdraw the bill because it “needs more studies that require further understanding and social context.”

Deputy Finance Minister Julapun Amornvivat also acknowledged the timing was unfavourable. “We accept it’s not the appropriate time,” he told reporters. “It’s a shame, the delay is a lost opportunity for the country.”

The legislation had been a controversial but central component of Pheu Thai’s economic agenda. Most forms of gambling remain illegal in Thailand, but Pheu Thai had pushed the bill as a pragmatic solution to both crack down on illegal betting and attract new revenue.

Leadership in limbo

Paetongtarn, 38, was suspended pending a court probe into her conduct during a diplomatic call with Cambodia aimed at easing tensions over a recent border dispute. The incident followed clashes in late May that resulted in the death of a Cambodian soldier.

Until the Constitutional Court completes its investigation, a process that could take weeks or months, Interior Minister Phumtham Wechayachai is serving as acting prime minister.

Despite her suspension, Paetongtarn remains in the cabinet as culture minister, a position she retained following a reshuffle she approved shortly before the court ruling.

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The prime minister’s political troubles have also left the Pheu Thai party weakened. The party holds only a razor-thin parliamentary majority after several coalition partners distanced themselves amid the growing scandal.

The setback to the gambling bill underscores how Paetongtarn’s suspension has complicated efforts to push forward major legislation, particularly on contentious economic reforms.