The situation before the legalization of gambling in Thailand
- Legal background: Prior to legalization, gambling in Thailand was largely prohibited, with the Gambling Act of 1935 making almost all forms of gambling illegal, with the exception of the state lottery and betting at racetracks.
- Underground gambling activities: Despite strict laws, underground casinos, illegal gambling and online gambling platforms are still rampant. Many Thais and foreign tourists also enter them for fun, causing a large amount of tax revenue loss to the country.
- Social problems: Illegal gambling activities have led to a series of social problems, including crime, money laundering, debt crisis and family breakdown. Law enforcement agencies are under tremendous pressure, and the cost of combating illegal gambling activities is high, but the effect is limited.
- Economic losses: Due to the inability to effectively regulate, the government lost more than 10 billion baht in tax revenue. At the same time, a lot of funds flowed to foreign casinos and gambling platforms and could not be used for domestic economic development.
- Tourist income: According to statistics, Thailand has 6 million Chinese tourists every year and generates nearly 300 billion baht in revenue. A large amount of money also flows to underground casinos, resulting in a reduction in tax revenue.
Changes in Thailand’s gambling industry after legalization
- Economic benefits: The legalized gambling industry has brought considerable tax revenue to the Thai government. These revenues are used for public services such as infrastructure construction, education and medical care, and promote the country's economic development.
- Job Opportunities: New legal gambling facilities, such as casinos and resorts, have created a large number of jobs and driven the development of related industries, including hotels, restaurants, and tourism.
- Social management: The government can more effectively supervise gambling activities through legal channels. Legalized casinos must comply with strict regulations to prevent minors and high-risk groups from participating in gambling, thus reducing social problems caused by gambling.
- Crack down on illegal gambling: After legalization, the government stepped up its crackdown on illegal gambling activities. Due to the existence of legal channels, the size of the illegal gambling market has gradually shrunk and related criminal activities have also decreased significantly.
- Tax revenue: The Thai government expects to increase tax revenue by more than 12 billion baht each year.
Summarize
The legalization of gambling in Thailand is a landmark policy reform. It fundamentally changed the way gambling activities are managed and brought multiple economic and social benefits. Before legalization, Thailand faced difficulties such as rampant underground gambling, prominent social problems and serious economic losses. Through legalization, the government not only increased tax revenue and employment opportunities, but also effectively controlled gambling activities and reduced illegal gambling and related crimes. In addition, Macau, China is experiencing a rapid decline in gambling industry revenue and a decrease in the number of tourists. Thailand will undoubtedly become the next Macau or even Las Vegas in the gambling industry. Seizing this opportunity, gambling platforms are expected to achieve rapid growth and long-term development in the Thai market.
