Critics call on the government to carefully weigh the risks and benefits when discussing the legalization and regulation of online gambling, warning that the proposal could cause more harm to the country.
Last week, Thai Deputy Prime Minister Prasert Jantararuangtong announced that the government will initiate discussions on the legalization of online gambling.
He stated that since multiple legal amendments are needed to legalize online gambling, he calls for relevant departments to coordinate discussions and work.
Prasert, who also serves as the Minister of Digital Economy and Society (DES), said that research on this proposal is expected to be completed in the coming months.
This move is in response to former Prime Minister Thaksin Shinawatra's speech last week in Chiang Rai, where Thaksin proposed that online gambling should be legalized and regulated to aid the economy and society, rather than allowing it to continue underground.
Thaksin stated that every day, between 2.5 million to 4 million people in Thailand participate in online gambling. He suggested that the regulation of online gambling should be similar to that of legal lotteries, with clear rules, taxes, and age restrictions (prohibiting participation under the age of 20).
He also added that addicted online gamblers could receive treatment through medical means.
Prasert acknowledged that online gambling is associated with many social issues, including juvenile delinquency. He also pointed out that online gambling is indirectly related to the opening of "proxy" bank accounts and fraudulent activities.
However, he mentioned that online gambling platforms handle a large volume of financial transactions daily, and proper taxation could benefit the national economy.
When discussing Thaksin's proposal to ban online gambling for those under 20, Prasert said that this issue has not yet been discussed.
Interior Minister Anutin Charnvirakul stated that the Ministry of Interior and the Ministry of Digital Economy and Society have been discussing the possibility of legalizing online gambling for several months.
He said, "We have no objections to online gambling as long as taxes can be collected and measures are taken to prevent money laundering." Anutin also mentioned that provincial administrative departments are amending the Gambling Act to regulate all forms of gambling. After the amendment, the Ministry of Interior and the Ministry of Digital Economy and Society will jointly regulate online and offline gambling.
More Harm Than Benefits
Nualnoi Treerat, a scholar at the Faculty of Economics, Chulalongkorn University, told the Bangkok Post that the negative social impact of online gambling far outweighs any potential economic benefits.
She said, "In some countries, casinos are legal, but online gambling is still illegal. Even in countries where online gambling has been legalized, illegal online gambling activities are still rampant." She added, "Online gambling is very accessible, and anyone with an internet connection can gamble anytime, anywhere. The accessibility and frequency of gambling websites significantly increase the risk of addiction."
Nualnoi also pointed out that many gamblers tend to "chase losses" by increasing their bets in an attempt to recover previous losses. "Online gambling is very addictive. If online gambling is legalized in Thailand, no one can guarantee that the government will effectively address underground illegal gambling activities."
She also urged the government to intensify efforts to combat telephone scam gangs and the opening of proxy bank accounts, as these are often associated with money laundering activities conducted through online gambling websites. She expressed skepticism about the government's ability to effectively prevent minors from accessing online gambling platforms. "Will the authorities take this issue seriously?" she questioned, "Is it worth it if the legalization of online gambling brings widespread social problems?"
Citing data from the World Health Organization, she pointed out that gambling addiction is similar to drug addiction, making it particularly difficult to treat. She also mentioned that Thailand's public health system is already overstretched, with staff busy caring for patients with other diseases. "This is not a simple statement," she referred to Thaksin's suggestion to send addicts for treatment.
Social Impact
Thanakorn Komkris, Secretary-General of the Anti-Gambling Foundation, expressed concerns about the negative social impact of legalizing online gambling. "Online gambling attracts a large number of players who can play around the clock.
But when the fun stops, negative consequences follow," he said. "Thaksin only mentioned the government's potential revenue of billions of Thai baht, but he did not mention the social impact of legalizing online gambling."
While legalizing online gambling may bring economic benefits, it could also bring social costs, including productivity losses, unemployment, costs related to the criminal justice system, an increase in court cases, and higher medical expenses.
Thanakorn expressed skepticism about Thailand's ability to effectively implement measures to reduce the social impact of online gambling. "Legalizing online gambling will only attract more people into the world of gambling," he warned.
Illegal Gambling Still Rampant
Furthermore, Thanakorn believes that legalizing online gambling does not mean that unregulated illegal online gambling activities can be curbed. "Many illegal online gambling operators operate underground quietly, and they only need to pay kickbacks to the authorities to continue engaging in other illegal activities.
They are unwilling to pay taxes or be legally regulated," he said. "As long as the government cannot crack down on underground illegal gambling operators, those who comply with legalized online gambling regulations will feel disadvantaged. The government must take strict action against underground operators to ensure fairness."
Krisanaphong Poothakool, Associate Professor of Criminology and Vice President of Ramkhamhaeng University, stated that the social impact of online gambling is immeasurable, involving family issues, suicide, debt, theft, and crime. "Can the proponents of this policy propose measures to address these issues and compensate for related losses?" he asked.
Krisanaphong also expressed skepticism about the government's ability to effectively enforce Thaksin's proposed age restriction of over 20 years. "Age restrictions in entertainment venues are not effectively enforced, let alone on online gambling websites," he pointed out. "If this policy of legalizing online gambling is implemented and adverse consequences arise, policymakers must take responsibility and be punished according to the law."
Financial Crime and Money Laundering
Supisarn Bhakdinarinath, Deputy Leader of the People's Party, stated that online gambling platforms are often used by criminals for money laundering. "Thailand's law enforcement agencies struggle to keep up with these cybercriminals. Advanced knowledge and skills in digital forensics and investigation are crucial for preventing cybercrime," he said.
Supisarn also called for financial institutions and banks to take more measures to monitor and prevent criminals from using proxy bank accounts for money laundering. "If online gambling is legalized, the government must ensure that betting funds do not come from illegal sources," he said. "Revenue from online gambling should be used to improve the efficiency of law enforcement agencies in preventing and investigating digital crimes."
