The case for legal gambling in Thailand

The gambling industry has seen massive growth internationally in recent years. With iGaming coming to the fore, players worldwide can legally try their luck and enjoy the thrills that gambling is famous for.

In some countries, however, the act of gambling is not only frowned upon but wholly illegal. Thailand is one of these places, and it has strict legislation that prohibits any form of gambling except for bets placed on horse races and the national lottery.

Gambling in the region has been illegal since 1917, with a gambling act officially signed into law in 1930. Since then, there have been few changes to the rules relating to the pastime aside from a revision to the Gambling Act in 1935.

But with a rampant black market offering Thai residents access to incredible gambling opportunities, things look likely to change. As the case for legal gambling in the country grows, pressure is on the government to change the existing laws and legally allow the enterprises that are threatening to burst through the country regardless.

Why Gambling Is Outlawed

Many believe that Thailand was initially populated mostly by migrants from southwest China. These people brought many staunch beliefs and religious ideals that have helped shape Thailand’s society.

As such, Thailand is predominantly Buddhist, with residents being conservative and traditional—slow to adopt new practices, particularly those originating in Western countries. It is due to this, and several other factors, that gambling is frowned upon.

However, with technology making the world an infinitely smaller place and even more traditional regions acclimatising to new cultures and beliefs, there has been a distinct shift. Many Thais who once held fast to the condemnation of gambling are coming around and recognising the benefits the pastime offers.

Gambling Black Market

These residents, eager to try out some of the latest forms of gambling, are more open to the idea of the activity. Many are so willing to try it that they willingly and knowingly break local laws to do so, leading to raids on illegal operations.

It is tough to estimate the value of physical gambling that occurs in the shadows of the country. Online gambling, however, can be estimated, with many analysts predicting that the current black market for online gambling in the region is valued at up to $12 billion.

This amount comes from players accessing online casinos and bookmakers that operate from outside the country’s borders but accept players from within it. There is much debate as to the ethics and legality of this, as many of these sites are aware that gambling (including online versions) is prohibited in the nation.

And while local governments have their hands full raiding physical gambling dens located throughout the country, blocking access to the full list of licensed casinos allowing Thai players access is easier said than done.

The Case for Legal Gambling

Because of the booming black market, Thailand’s government finds itself at a unique crossroads in which it will need to make a pivotal decision. The first option is to continue the prohibition on gambling and redouble its efforts to crack down on those breaking the law.

However, this approach, which primarily targets gambling operators and not gamblers themselves, hasn’t been particularly effective. With a $12 billion industry in the shadows, these efforts are not only ineffective but also cause massive revenue loss for the government, which gets none of the proceeds.

Alternatively, the government can adapt to current times and legalise all forms of gambling. This doesn’t necessarily have to happen overnight; it can be done in stages, as it has occurred in many other countries, including the USA, where online casinos appeared years before sports betting.

Legalising gambling will have two main positive effects on the government:

Analytics

The first of these effects is that the government will better understand the country’s gambling market and all associated analytics, such as the number of people gambling, the average amount each person spends, and the length of gaming sessions.

The government can study all this data to detect patterns in user behaviour or identify operators who are frequented by players but may not be operating in an acceptable manner. Analytical data will, however, chiefly allow the government to recognise players at risk for problem gambling.

Identifying these gamblers will help the government implement reform programs and provide assistance to help players enjoy the activity more responsibly. This will protect vulnerable players and the industry as a whole.

Revenue

Analytics aside, one of the most significant effects legal gambling will have is generating new revenue streams and jobs that won’t be limited to just locals who partake in gambling; it will also target frequent visitors to Thailand from around the globe.

Welcoming over 27 million tourists annually, estimates predict that these tourists, if given access to legal gambling resorts that feature five-star casinos and hotels, will likely spend almost $1,790 on gambling each time they visit the country. This equates to nearly $48.3 billion in total spending—significantly increasing the country’s balance sheet.

The revenue generated by locals will also inflate this amount as the black market shrinks due to being legalised. Rather than the $12 billion being spent on external sites, it will be kept within the country’s borders and benefit the government, which in turn will benefit locals through upliftment campaigns and additional funding for services.

Final Thoughts

Currently, a bill is in draft form that would legalise gambling across Thailand and give consent for the construction of various incredible gambling destinations. If the government looks at the predictions, it is clear that legalising the activity will benefit all who engage in it and the country as a whole.

However, a poll undertaken in 2021 found that 47% of citizens were still opposed to the idea of legal gambling. Thus, the government will need to find a careful balance between allowing new approaches and ensuring that the more traditional folks in the region don’t feel marginalised.