Thailand's cabinet on Thursday approved a draft law for casinos and entertainment complexes, as the government looks to attract more tourists and build a major gaming industry.

Gambling is mostly banned in Thailand apart from state-controlled horse racing, the lottery and on some sports but successive governments have pressed the case for allowing casinos to draw in more foreign visitors and create more jobs and state revenue.

But the latest draft approved by cabinet will significantly limit how many Thai punters can go to casinos, with an entry fee of 5,000 baht and proof of at least 50 million baht in bank deposits ($1.47 million), effectively blocking large swathes of the population, where per capita gross domestic product is about $7,300.

A deputy finance minister had earlier this month said the assets requirement for Thai nationals would be dropped because it would exclude too many people.

Another restriction is that the casino area may only occupy up to 10% of the entire space of an entertainment complex, according to a government statement.

The draft law will be sent to parliament, and if passed, will also need approval from the Senate and the king.

Prime Minister Paetongtarn Shinawatra told reporters the details of the law were not final as parliament would have the final say.

A Citi report late last year estimated that about half of people aged 20 and more in Thailand could be casino players, providing a base for the country to potentially become the world's third-largest gambling destination.

The government, led by the populist Pheu Thai party, hopes to attract at least 100 billion baht ($3 billion) in new investment in casinos and entertainment complexes and see an annual boost to foreign arrivals of 5% to 10%, while generating revenue of more than 12 billion baht a year.

Despite most betting and gambling being outlawed in Thailand, illicit operations have operated for years.

A January opinion poll in Thailand indicated there was opposition to the plan, however, and some political parties have argued that building a gambling industry would worsen social problems.

Several countries in Southeast Asia have legalised casinos, but only a few like wealthy Singapore has been successful in drawing global giants such as Las Vegas Sands Corp on the back of robust regulations.

Tourism is a key driver of Thailand, Southeast Asia's second-largest economy. This year, the government expects 38 million foreign arrivals, closing in on its pre-pandemic record of nearly 40 million tourists.