The government's proposal to establish an integrated entertainment project including casinos in Bangkok or the eastern coast has recently faced some resistance. Last week, the State Council raised objections, arguing that this large-scale project does not align with the government's policy of promoting new types of tourism.
The State Council also ruled that drafting a legal bill for the integrated entertainment project is unnecessary, as it would duplicate existing laws on hotels, restaurants, and gambling. Moreover, the public's understanding of entertainment complexes does not include casinos.
Nevertheless, the Peutongtan Sinawat government seems to have another focus, which is the legalization of online casinos.
The government firmly supports the legalization of this lucrative online gambling business, which brings in billions of Thai baht in revenue annually for operators, including some criminal gangs. According to former Prime Minister Thaksin Shinawatra, about 2.5 to 4 million Thais participate in illegal online gambling activities.
In his recent campaign speech in Chiang Rai, Thaksin stated that he hopes to legalize online gambling so that the government can collect taxes from it.
In response, the Minister of Digital Economy and Society, Prasert Chantaralawan, quickly stated that the department is conducting research on the legalization of online gambling, but did not provide further details.
From a purely economic perspective, it makes sense for the nation to take a substantial share of the revenue from this profitable gambling business, rather than letting these funds flow underground. After all, the gambling behavior of Thais, whether legal or not, is unstoppable.
Therefore, supporting the legalization of online gambling can be seen as an instance of "if you can't beat them, join them."
It is well known that the Thai government's budget has been in deficit for several years, with tax revenues falling short, mainly due to economic slowdown. To cover the budget deficit, the government has had to resort to borrowing, nearly reaching the public debt ceiling.
Thus, legalizing online gambling to increase tax revenue is a quick and logical choice.
Bringing online gambling into the open could generate significant tax revenue, allowing the government to fund infrastructure without needing to borrow or even resort to economic stimulus measures like digital wallets.
However, considering the various social issues faced, such a move is not easy.
If online gambling is to be legalized, the government must ensure effective mechanisms are in place to prevent tax evasion, money laundering, and negative social impacts.
Firstly, enforceable rules must be established to prevent minors under the age of 20 from participating in online gambling. According to a research report released by the Gambling Research Center under the Thai Health Promotion Foundation in November 2023, over 4 million youths have been involved in online gambling, leading to financial and health problems.
Similarly, the government must screen reliable online gambling operators to ensure only reputable businesses are involved. If not, the policy would essentially be aiding gangs and corrupt officials.
When discussing the legalization of online casinos, politicians have not touched on related criminal issues such as human trafficking and money laundering. The government and law enforcement must have solutions and preventive measures to deal with these illegal operators, some of which are associated with gangs and human trafficking, drugs.
Finally, a special fund must be established to help gambling addicts. The government could learn from the UK's experience in managing online gambling activities, such as football betting in the Premier League, which is also popular among Thai gamblers. The UK taxes gambling companies' net profits at rates of 15% to 21% of total gaming revenue, while France imposes a progressive tax rate of 25% to 37%.
The government could also explore the use of artificial intelligence, blockchain technology, and digital currencies in Thai online gambling to prevent minors from gambling and to monitor gambling activities.
To achieve this goal, the government and law enforcement must have sufficient resources to track tax evasion and money laundering activities.
To legalize this industry, our law enforcement must be able to effectively monitor and control illegal activities. Online gambling, whether legal or illegal, inevitably brings negative social impacts. The government must carefully weigh the pros and cons and make the right decision for the country, rather than just for short-term political gain.
