The Digital Economy and Society Department (DES) is pushing for the legalization of online gambling, but this seems far from a prudent move.
Last week, DES Minister Prasert Jantararungtong stated that the cabinet has in principle approved the department's proposal to regulate online gambling activities within a legal framework, ensuring proper taxation.
The minister mentioned that the purpose of legalizing underground gambling is to increase national revenue, aligning with the policies of the government led by the Pheu Thai Party.
Thaksin Shinawatra, founder of the Pheu Thai Party and former Prime Minister, noted that there are approximately 2 to 4 million people gambling online in Thailand. He stated that 20% tax could generate about 100 billion Thai baht in revenue annually.
Mr. Prasert seems overly focused on the potential tax windfall, neglecting other pressing issues such as economic losses caused by various online frauds, especially call center scams—crimes that his department is supposed to combat.
This raises a critical question: If DES has failed to combat underground gambling activities as "crimes," what makes it confident in controlling and regulating these activities now?
Mr. Prasert appears to be betting everything on legislation, seeking cooperation from the Ministry of Interior and the State Council to amend secondary laws related to online gambling—ambitiously planning to complete this task within a month before tackling the primary laws.
While updating laws to address new issues and evolving challenges of online gambling may aid the government's efforts, legislation alone is insufficient to control underground activities.
The proliferation of online gambling—whether virtual casinos, sports betting, or lotteries—proves that these activities thrive despite existing laws.
If DES does not implement strong safeguards, including eliminating corruption and enforcing strict laws, it is hard to imagine how legislation could control these enterprises known for high profits and dark forces.
The DES minister seems to overlook another key point—new legislation does not automatically bring underground enterprises into the public eye.
With the government only focusing on tax revenue, what incentive do online gambling operators have to sacrifice profit margins and step out of the shadows?
Unless DES and other agencies enforce the law and impose severe penalties on those evading legal status, the hope for underground enterprises to comply with the law is slim.
More troubling is that, unlike the entertainment complex bill that paves the way for large projects like legal casinos, this proposal would legalize popular gambling from football betting to cockfighting.
Although Mr. Prasert has promised to hold public hearings after the revisions are complete, the key issue is whether the department is moving in the right direction.
Regulating online gambling to protect citizens versus merely pursuing tax revenue are vastly different. If the latter is true, then the department itself may be engaging in the riskiest gamble of all.
