Thailand’s Casino Legalization Effort Derails After Court Ousts Prime Minister Paetongtarn Shinawatra

Thailand’s path toward casino legalization has been dealt a heavy blow following the Constitutional Court’s decision on August 29 to dismiss Prime Minister Paetongtarn Shinawatra. The ruling opens the door for long-time casino opponent Anutin Charnvirakul to take power, a development that could doom the highly contested casino bill.

Paetongtarn, who had been a leading proponent of legalizing casinos inside entertainment complexes to stimulate tourism and strengthen the economy, was removed by a six-to-three court ruling over ethics violations tied to a leaked phone conversation with Cambodia’s former leader Hun Sen. The decision effectively ends the Shinawatra family’s most recent attempt to push forward pro-business gaming reforms, which had already faced fierce opposition from conservative groups.

Only hours after the ruling, Bhumjaithai Party chief Anutin Charnvirakul announced that he had gathered sufficient parliamentary support to form a new coalition government, positioning himself as Thailand’s next prime minister. A vocal critic of casino legalization, Anutin’s rise represents a dramatic shift that could terminate the bill entirely. “As Bhumjaithai’s leader and prime ministerial candidate, I have been ready since 2019,” he said at a press conference, emphasizing his party’s pledge to tackle national challenges and restore stability. His candidacy is bolstered by the People Party, which commands 143 seats in the House of Representatives, the largest bloc in parliament.

The proposed casino law, which had gained traction under Paetongtarn despite Thailand’s deep-rooted cultural and legal restrictions on gambling, now faces a highly uncertain future. Both Paetongtarn and her father, former Prime Minister Thaksin Shinawatra, had vigorously defended the measure as a means to attract foreign investors and generate jobs within Thailand’s tourism-driven economy. Yet the Cabinet withdrew the bill from its July voting schedule amid Paetongtarn’s suspension and mounting public criticism.

The prime minister’s downfall was triggered by a phone call on June 15 with Hun Sen, during which she addressed him as “uncle” and appeared to disparage Thai military officials while discussing sensitive border issues. Hun Sen later released the conversation publicly, only weeks before a deadly five-day border clash that killed dozens and forced over 260,000 people from their homes.

The Constitutional Court determined that Paetongtarn’s remarks undermined national interests, stating her “personal relationship appeared to align with Cambodia” and violated the ethical obligations of her office. Although she defended her tone as a negotiating tactic intended to avoid further bloodshed, the court ruled that her words cast doubt on her allegiance to Thailand.

The decision has already reshaped the political landscape, fracturing the governing coalition. Bhumjaithai withdrew its support during the Hun Sen controversy, leaving the Pheu Thai Party with only a fragile majority. Under a new agreement with the People Party, Anutin has committed to dissolve parliament within four months of delivering his policy agenda and to call fresh elections. That timeline suggests casino legislation will be delayed indefinitely, if not abandoned outright, as the country prepares for another vote.

For the Shinawatra dynasty, the verdict marks yet another political defeat. Paetongtarn is now the third family member to lose the premiership prematurely, following the ouster of her father Thaksin in the 2006 coup and the Constitutional Court’s dismissal of her aunt Yingluck in 2014.

By fLEXI tEAM