Thailand’s Cabinet on Tuesday withdrew a controversial bill to legalize casinos, citing political instability following Prime Minister Paetongtarn Shinawatra’s suspension over an ethics probe. Deputy Finance Minister Julapun Amornvivat announced the delay, stating the government plans to reintroduce the “entertainment complexes bill” at a more stable time, with the current Cabinet reshuffle and political climate as key factors.

Initially approved in January, the bill aimed to allow casinos within integrated resorts featuring hotels, malls, and theme parks to boost tourism and curb illegal gambling. The Pheu Thai Party, led by Paetongtarn, projected a 5-10% rise in foreign visitors and up to 220 billion baht ($6.5 billion) in annual tourism revenue, alongside 9,000-15,000 new jobs.

However, the proposal faced fierce opposition from the public, religious groups, and the Bhumjaithai Party, which exited the coalition last month over a leaked call between Paetongtarn and Cambodia’s Senate President Hun Sen. The call, discussing a border dispute, led to Paetongtarn’s suspension by the Constitutional Court for allegedly harming national interests. Critics, including the People’s Party, warned of gambling addiction and potential Chinese travel restrictions impacting tourism.

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Julapun emphasized the need for more public consultation, calling the delay “regrettable” but necessary. The Pheu Thai Party insists casinos are a minor part of a broader tourism strategy, a critical driver of Thailand’s economy. With the bill’s withdrawal set for parliamentary confirmation on July 9, the government faces challenges advancing its agenda amid a weakened majority.

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