Thailand's cabinet has approved a draft law to legalize gambling and casinos, a move aimed at boosting tourism, creating jobs, and attracting investment, according to Prime Minister Paetongtarn Shinawatra on Monday.

Under the new plan, the law will be sent to parliament for discussion and, if approved, would allow gambling in large-scale entertainment complexes. While most forms of gambling are currently illegal in Thailand, activities like soccer betting, underground gaming, and lotteries are widespread, with significant amounts of money involved.

In Thailand, only specific forms of gambling are currently allowed, such as state-run horse races and an official lottery. However, neighbouring countries like Cambodia, Singapore, the Philippines, Laos, and Myanmar have seen benefits from large casino complexes. Thailand’s government argues that by not having legal casinos, the country is missing out on significant revenue and not fully tapping into its tourism potential.

Tourism is a major contributor to Southeast Asia's second-largest economy, and Thailand expects record numbers of visitors in the coming years. Prime Minister Paetongtarn Shinawatra explained, "Legalization will not only protect the public but also generate more state revenue."

Thai governments have long attempted to legalize and regulate gambling to boost the economy, but each effort has faced resistance from conservatives in the predominantly Buddhist country.

The current proposal is expected to drive a 5 to 10 per cent increase in foreign visitor numbers and could boost tourism revenue by around 120 billion to 220 billion baht (USD 3.45 billion to USD 6.32 billion), according to Deputy Finance Minister Julapun Amornvivat.

Deputy Finance Minister Julapun Amornvivat also mentioned that the move could create between 9,000 to 15,000 new jobs. A strong supporter of legalizing gambling has been billionaire former Prime Minister Thaksin Shinawatra, Paetongtarn's father, who is an influential figure in the ruling party.