Thailand is paying attention to the “Singapore model” of casinos and is also considering online gambling. Will it be a winner?

Loss of money across borders

Current sources of online gambling in Thailand are illegal and have long been linked to various criminal activities such as money laundering, drugs, and human trafficking.

It has been well documented that large-scale fraud was taking place in close proximity to border gambling establishments.

Thai police officers are also involved in such illegal activities. In September last year, several police officers were found to be involved in operating illegal online gambling sites and were arrested at multiple locations, including the home of Thailand’s Deputy National Police Commissioner Surachate “Big Joke” Hakpan. A search of the house was conducted.

It is estimated that huge amounts of Thai funds are currently flowing out of the country through overseas and online illegal gambling.

The legalization of on-site casinos is framed as one solution to diverting funds away from such activities and instead into government coffers.

Karit Panaim, a member of the Forward Party lawmaker and member of the parliamentary committee considering the legalization proposal, said legal casinos were not allowed to operate in gambling dens on the border, including in the border province of Tak, which he represents. He said he believes he can put a stop to the illegal activities that are occurring. Along with Myanmar.

“If we have recreational facilities, less money will flow to the border,” he says.

However, Dr Nuarnoi said it was very difficult to determine the scale of illegal gambling in Thailand. She said the COVID-19 pandemic has resulted in a surge in online gambling in the country as gamblers are unable to cross borders.

According to her centre’s research, the number of online gamblers in Thailand doubled in 2021 to 1.9 million during the worst of the lockdown period. The country’s total gaming revenue for the same year was estimated at US$2.8 billion.

“Many of them are currently playing within the country. And the people offering this online gambling are all Thai,” she told CNA.

“Just because there are legal casinos doesn’t mean there are no illegal casinos. That’s another story.” “If we have legal casinos, they need to replace illegal casinos. Otherwise, casinos will just become a place for people to gamble in the country.”

Thanakorn Komkris, executive director of the Anti-Gambling Foundation, said there was no proper enforcement. With such illegal operations, Thailand cannot hope to sustain its gambling industry.

“If the public does not want to spend money abroad, the government should apply pressure in every possible way to prevent the public from accessing this (illegal gambling).”. “Legal gambling does not reduce illegal gambling,” he said.

Last year, the government announced it had shut down thousands of gaming sites and dealt with thousands of illegal gambling cases.

Mr Thanakorn said he was still concerned that the government would rush through legislation that would not ensure proper management and control of the industry.

“I also worry that it could become an excuse to ‘sandbox’ or, like with the decriminalization of cannabis, legalize first and then take regulatory action. “We are doing it,” he said.

The legalization of cannabis in Thailand in 2022, meaning permission to possess, cultivate, distribute, consume and sell cannabis, has progressed rapidly.

The marijuana industry has enjoyed unfettered expansion, with marijuana dispensaries rapidly popping up across the country, especially in popular tourist cities. The government announced this month that it would urgently introduce legislation to ban recreational drug use.

“We’ve learned a lot of lessons about doing it first and fixing it later. You can’t do this because you can’t catch up with the problem or stop it later,” Thanakorn said. said.