The gambling industry in Southeast Asia has shown a diversified development trend in recent years, with each country having its own characteristics in terms of policy regulations, market size, and development trends. Next, let's take a look at the current state of gambling development in Southeast Asian countries.
Philippines: Cracking down on illegal POGO, flourishing e-gambling
The biggest change in the Philippine gambling industry is the POGO ban issued in mid-2024, revoking all licenses of offshore gambling operators (POGO) in hopes of combating illegal gambling-related issues such as human trafficking and electronic fraud.
However, the ban did not bring the expected "devastation" to the Philippine gambling industry; instead, it has achieved significant growth over the past few years.
According to data from the Philippine Amusement and Gaming Corporation (Pagcor), total gambling revenue in 2024 reached 410.5 billion Philippine pesos (about 7.8 billion US dollars), a 25% increase year-on-year, far exceeding the previous target of 334 billion pesos. It is expected to grow by another 17% in 2025, reaching between 450 billion and 480 billion pesos (about 7.8 billion to 8.3 billion US dollars).
This growth in the Philippine gambling industry is mainly due to the expansion of the e-games sector and the development of integrated resorts, making Manila attractive to many international high-end players.
For this reason, PAGCOR has further reduced the rate for e-games from 35% to 30% starting from January 1, 2025, and the rate for e-games operated by integrated resorts has also been reduced to 25% to compensate for the management costs incurred by physical operators.
According to last month's data, PAGCOR has issued nearly 1200 licenses for various live and online gaming products, a 14% increase from the number of licenses issued in 2023. The number of recognized gaming service providers has also reached five times the number in 2023!
It is evident that PAGCOR has high hopes for the development of e-games and integrated resorts!
Thailand: Moving towards gambling legalization
Looking at Thailand, the country is also actively advancing the process of gambling legalization.
On January 13, 2025, the Thai Cabinet approved a draft bill aimed at legalizing casinos, planning to set up casinos, hotels, shopping centers, conference centers, and theme parks within large entertainment venues. This move aims to boost tourism, increase employment opportunities, and attract investments. After legalization, the number of foreign tourists is expected to increase by 5% to 10%, and tourism revenue is expected to increase by up to 220 billion Thai baht (about 6.3 billion US dollars).
According to the bill, foreigners can enter casinos for free, while Thai citizens must have at least 50 million Thai baht in fixed deposits in banks and pay an entry fee of 5000 Thai baht (about 148 US dollars), and must be over 20 years old.
PS: The latest news on March 3, the latest revised draft bill has removed the condition of "Thai citizens entering casinos need to have 50 million Thai baht in deposits" and changed it to "Thai citizens entering casinos need to submit tax proof from the past three years."
In addition, the draft bill also proposes that Thai casinos must be separate from a wide range of entertainment complexes and have their own doors and entrances, although the maximum area of the casino should be set at 10% of the total area of the resort, higher than the previous 5% limit.
In February, government sources confirmed that the "Casino Law" draft bill is currently in the final stage of public consultation, expected to be submitted to the Cabinet for approval on March 11, 2025. If approved, the bill will be submitted to Parliament for consideration. If it also passes in Parliament, the bill is expected to be enacted in the first quarter of 2026.
At the same time, the "Entertainment Complex Business Bill" (also known as the "Comprehensive Entertainment Industry Bill") is also expected to be enacted in the first quarter of 2026, further regulating entertainment venues.
Additionally, international operators such as Resorts World Sentosa, Las Vegas Sands, Galaxy Entertainment Group, Melco Resorts & Entertainment, Wynn Resorts, and MGM Resorts have previously expressed interest in Thailand.
However, given such strict entry thresholds, analysts from Resorts World Sentosa have stated that if the market size is limited to foreign tourists, it would be difficult to commit to high capital expenditures for resorts.
Moreover, in a country where Buddhism is prevalent and underground gambling is widespread, it remains uncertain how far gambling legalization can go and whether it can proceed smoothly.
Singapore: A mature gambling market
Singapore has two large legal casinos: Resorts World Sentosa and Marina Bay Sands. These integrated resorts not only provide gambling services to tourists but also include hotels, shopping centers, and entertainment facilities, becoming an important part of Singapore's tourism industry.
Most importantly, Singapore has relatively well-established regulations for casinos, and operations are very mature, with basically no issues. Last August, the Singapore government also revised the casino entry fee policy, officially setting the casino entry fee for Singapore citizens and permanent residents at 150 Singapore dollars per day or 3000 Singapore dollars per year, to curb impulsive and random gambling behavior.
Regarding the casinos, last October, the Las Vegas Sands group, which owns Marina Bay Sands Resort, announced an 8 billion US dollar expansion project called IR2, which will include the construction of a fourth hotel tower with 570 luxury suites, a gambling area, a 15,000-person arena, a rooftop pool, dining facilities, and 110,000 square feet of exhibition and conference space. Last November, the Singapore Gambling Regulatory Authority (GRA) renewed the casino license of Resorts World Sentosa for two years, instead of the usual three years, due to the need for improvements in its tourism performance.
Cambodia: The rise and challenges of the gambling industry
The gambling industry in Cambodia has rapidly developed in recent years, attracting a large number of foreign investors and tourists.
As of the end of last year, the Cambodia Commercial Gambling Committee had issued operating licenses to 195 casinos, more than 100 of which are in Sihanoukville. Moreover, the capital city of Phnom Penh is home to Cambodia's largest integrated casino—NagaWorld.
PS: It was reported that when Zhang Jike was exposed for gambling, he was found to have traveled multiple times between Beijing and Phnom Penh during 2019.
In 2024, Cambodia's gambling (casinos and lucky lotteries, etc.) tax revenue was about 60 million US dollars, an 85% increase year-on-year. It is expected to reach 70 million US dollars in 2025.
However, the rapid expansion of the industry has also brought about regulatory and social issues. In recent years, to attract more customers, legal physical casinos have mostly opened online businesses. At the same time, Phnom Penh and Sihanoukville have a large number of online gambling fraud parks. This has led to issues such as human trafficking, illegal money laundering, and sexual exploitation.
We often see news like this: Chinese people in Cambodia committing suicide, jumping off buildings, being kidnapped, etc.
Driven by domestic pressure, Cambodia has ordered a complete halt to the issuance of online gambling licenses. Recently, in the tense atmosphere throughout Southeast Asia, the Cambodian government not only implemented increasingly strict inspection systems for foreigners in Cambodia but also had the Prime Minister Hun Manet last month stating that he would personally lead and enforce the law with an iron fist to comprehensively combat online gambling and electronic fraud crimes, to maintain national security and image.
Other countries: Diverse policies
The attitude towards the gambling industry varies among other Southeast Asian countries.
As the Philippines cracks down on POGO, many gambling practitioners have moved to Thailand, Dubai, or Cambodia. However, these countries are not ideal long-term bases and face identity verification and legal risks.
Especially in recent months, with the development of the Wang Xing incident, Southeast Asian countries have launched an anti-fraud campaign, targeting illegal electronic fraud parks hidden along the Thai-Myanmar border and within Myanmar. The Thai government and local forces in Myanmar have successively taken action, not only cutting off electricity and internet but also jointly acting to arrest illegal electronic fraud personnel and cooperate in repatriation.
Currently, nearly 5,000 Chinese citizens have been rescued from fraud centers in Myawaddy, Shwe Kokko, and KK Park, but China has only received 621 people so far, leaving a large number of people still stranded in Myanmar waiting for repatriation. Due to the limited capabilities of the BGF, the detention of these people has also caused a considerable burden.
Looking at other countries: Malaysia has the legal Genting Highlands Casino, while Indonesia and Brunei strictly prohibit gambling activities. Emerging markets like East Timor, with economic development and policy evolution, are also gradually nurturing new growth spaces.
In conclusion
The legal gambling market in Southeast Asia is rapidly evolving, and each country has adopted different policies and development paths based on its economic goals, cultural values, and social needs, providing new opportunities and challenges for operators and investors.
However, while seeking economic growth, it is inevitable to face many social and regulatory issues. How to balance social impacts and regulatory challenges while seeking economic growth is a question that governments need to consider!
