With the tightening of government policies in the Philippines' online gambling industry (POGO), which has fallen from a leading position to the sidelines, another popular country in Southeast Asia—Thailand—is widely considered to have the potential to become a new center for the gambling industry.

Not to mention, just by seeing that gamblers overwhelmingly prefer Thailand, you know that Thailand is the "dream destination" for many!

Driven by the bill legalizing gambling in Thailand, the global gambling industry's landscape is changing faster day by day.

So, the question arises, can Thailand truly become a major player in the gambling industry? This article will analyze its gambling history, current policies, social environment, and economic conditions.

1. Thailand's Gambling History and Current Situation

Historical background: Thailand's gambling history dates back to the 19th century, where gambling was widespread among the common folk and the royal courts. However, due to the social issues caused by gambling, the Gambling Act of 1935 was enacted, which banned most forms of gambling except for the national lottery and horse race betting.

Current situation: Despite strict laws, illegal gambling is still rampant. It is estimated that the annual transaction amount in Thailand's illegal gambling market reaches billions of dollars, including underground casinos, illegal lotteries, and online gambling.

2. In recent years, the Thai government and society have begun discussing the possibility of liberalizing the gambling industry, providing a potential for Thailand to become the next "gambling haven."

Firstly, international competitive pressure

Neighboring countries (such as the Philippines, Cambodia, and Singapore) have attracted a large number of international tourists and capital through their gambling businesses, putting competitive pressure on Thailand. Among them, Singapore and Macau, with their strict legal management and developed offline casinos, attract many tourists worldwide.

Singapore's Marina Bay Sands and Resorts World Sentosa have become successful models in the regional gambling industry.

Meanwhile, the Philippines, with its low cost of living, lenient legal environment, and a history of gambling culture, has both large-scale online and offline gambling industries, creating significant wealth over many years.

Secondly, economic recovery post-pandemic

The COVID-19 pandemic that broke out at the end of 2019 has caused significant economic damage to Thailand, a country heavily reliant on tourism for its GDP. Therefore, it was among the first to relax pandemic policies.

Additionally, employment reports in Thailand show that nearly 65% of graduates struggle to find jobs, indicating a concerning future outlook. The Thai government has also recently cracked down on "nominee shareholders" to protect the local market, highlighting the challenging economic environment.

Thus, opening up the gambling industry is seen by the Thai government as an important measure to attract international tourists and boost the Thai economy.

It is estimated that legalizing gambling could bring in tens of billions of Thai baht in tax revenue annually. This amount of money is significant for any country.

Thirdly, policy discussions

In 2022, the Thai parliament established a special committee to study the feasibility of establishing integrated resorts and legal casinos in major cities (such as Bangkok, Pattaya). Although not yet formally legislated, this marks a potential relaxation of policies.

Currently, Thailand has plans to build five casinos in Bangkok, Pattaya, and Chiang Mai, with operators receiving a 30-year franchise that can be renewed every ten years. Although it has not passed the final review, it is only a matter of time. It is certain that Thailand, a lucrative market, has already caught the attention of industry giants like Sands, who are eager to enter the market.

So, what specific advantages does Thailand have that could help it become a new center in the gambling industry?

- Mature tourism market

Thailand welcomes tens of millions of international tourists each year, especially from China, Japan, and South Korea, regions with a high demand for gambling entertainment. Popular tourist cities like Pattaya, Phuket, and Bangkok have the infrastructure to develop integrated resorts.

- Strategic geographical location

Located at the heart of Southeast Asia, Thailand has convenient transportation links that can radiate to many surrounding countries. Once new casinos are opened, they will undoubtedly attract more tourists, taking a share from the markets of Singapore, Macau, and the Philippines.

- Lower operating costs

The cost of land and labor in Thailand is relatively low, suitable for the capital-intensive development of the gambling industry. More importantly, for some operators, the social and security environment is also relatively stable.

However, despite Thailand's potential to become a major player in the gambling industry, there are still many challenges!

Firstly, the policies have not yet been implemented. It will take some time for the implementation and the formation of social consensus after the policies are in place.

Secondly, neighboring countries like Singapore, Macau, the Philippines, and Laos are unavoidable competitors on Thailand's path to developing its gambling industry, several of which already have relatively mature international brand effects. For Thailand to make its mark, it will take time and money for marketing and differentiation (for example, Macau casinos often host various performances).

Thirdly, as a Buddhist cultural country with deep religious rituals among its citizens, if Thailand wants to develop the gambling industry, it needs to consider how to handle conflicts with religious culture!

Many religious groups and conservatives strongly oppose the legalization of gambling, believing it will exacerbate social issues such as debt, family breakdown, and increased crime rates.

Finally, regarding the development of Thailand's gambling industry, PASA boldly proposes the following suggestions:

Firstly, don't rush. Take it step by step, gradually liberalize, and initially open up gambling businesses in pilot areas, such as in Pattaya or Phuket, while strictly limiting local residents' participation or setting participation thresholds.

Once the pilot areas are relatively mature and the government can comfortably handle potential issues, then promote further, which will be more prudent. The public will also be more likely to accept it.

Secondly, strengthen regulatory mechanisms. If Thailand does not want to become the next Philippines, it needs to learn from Singapore's regulatory model to ensure that the positive impacts of the gambling industry on the economy outweigh the negative effects. For example, implement strict anti-money laundering regulations, enhance social monitoring of gambling activities, and establish gambling addiction centers, among others.

Thirdly, develop integrated resorts. Instead of focusing solely on gambling, use the integrated resort model to combine entertainment, conventions, shopping, and leisure centers into one, attracting a more diverse group of tourists. There are successful examples in Singapore, Macau, and even Las Vegas to refer to.

Fourthly, seek social support. By promoting the contributions of the gambling industry to economic recovery and establishing measures to protect vulnerable groups, gain more public understanding and support. In addition to the mentioned gambling addiction centers, regulations could also be made regarding the proportion and treatment of Thai nationals employed in the industry. With good job security, the resistance from the Thai public is likely to decrease significantly!

As long as Thailand properly implements policies, manages social impacts, and differentiates competition, it has the potential to become the new center of the gambling industry in Southeast Asia!