Entertainment complex plus online gambling?

THURSDAY, JANUARY 16, 2025

The legalization of casinos in Thailand under the "Entertainment Complex" policy is progressing alongside efforts to legalize online gambling.

This aligns with former Prime Minister Thaksin Shinawatra's comments in various forums about the significant underground economy fueled by gambling.

"Thailand has approximately 250,000 to 400,000 online gamblers. Annual deposits before gambling total around 3 trillion baht, with the amount of money gained and lost in gambling approximately 500 billion baht. A 20% tax could generate about 100 billion baht in revenue," Thaksin stated.

Many pressing issues in Thailand, such as illegal capital groups, call centre scam networks, mule accounts, and corruption involving politicians, military personnel, and police, are closely tied to illegal gambling networks. Proceeds from underground businesses are often used to curry favour with those in power.

Two ministries have responded to Thaksin's push to legalize online gambling: the Ministry of Interior and the Ministry of Digital Economy and Society (DE). Both are now considering amendments or new laws to authorize the initiative.

Entertainment complex plus online gambling?

The roles of two key ministers—Anutin Charnvirakul, Deputy Prime Minister and Minister of Interior (Bhumjaithai Party), and Prasert Chantraruangthong, Deputy Prime Minister and Minister of Digital Economy and Society (Pheu Thai Party)—are under scrutiny. Observers speculate about competition between the two to lead the initiative, with potential benefits and authority at stake.

Prasert recently stated that progress is underway. The DE is collaborating with the Ministry of Interior and the Office of the Council of State to draft secondary legislation, such as ministerial regulations or royal decrees, aiming to finalize drafts within a month.

However, the Gambling Act, under the Ministry of Interior’s jurisdiction, will also need amendments to ensure alignment. Whether cooperation between the coalition parties proceeds smoothly or encounters friction due to vested interests remains uncertain and could become a political issue.

As of now, the specifics of the forms of online gambling to be legalized remain unclear. Among the most lucrative activities for illegal gambling websites are bird-shooting games, fishing games, and similar designs. These games generate substantial revenue because operators have full control over their outcomes, allowing small wins to lure players into extended losing streaks. Programmers hired to create such systems earn salaries in the millions of baht monthly, justified by the massive returns for operators.

These websites often target children, who can access games 24/7 with minimal funds. Aggressive marketing, including promotions, discounts, and giveaways, further boosts their appeal.

In contrast, sports betting—such as football and boxing—yields lower profit margins for operators. Card games like baccarat, blackjack, and roulette, often streamed live from casinos abroad, remain popular and highly profitable.

Speculation is growing that the government’s push to legalize online gambling aims to attract foreign investors to establish casino businesses in Thailand. Some question whether investors are demanding online betting concessions alongside casino licenses as part of their agreements.

Politicians have yet to clarify who will act as the bookmaker once online gambling is legalized. Direct government involvement could pose legal and ethical challenges.

The likely approach will mirror the Entertainment Complex model, with licenses granted and regulated by a dedicated committee. This positions Thailand’s "Big Four" corporations to secure significant concessions for both casinos and online platforms.