Gambling and online casinos in Thailand

Thailand is one of the most touristy countries in the world, yet one of the strictest on gambling.

Under current law, casinos, slots, poker and online gambling are prohibited, with the exception of two forms:

1. Thai Government Lottery.

2. Betting on licensed racecourses (Bangkok Horse Racing Club).

Despite this, the country is in the top 5 Asian markets in terms of illegal gambling, and online casinos and sports betting bring billions of dollars to the shadow sector.

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Legislative framework

Basic law governing gambling:

• The Gambling Act B.E. 2478 (1935) - completely prohibits gambling in the country, except for specially authorized by the state.
• The Lottery Act (1974) - regulates the national lottery.
• Computer Crime Act (2007) - extends responsibility to online activities, including online betting.

Main provisions:

• organization of gambling - a criminal offense;
• participation in a game for money - punishable by a fine of up to 5,000 baht and a prison term of up to 1 year;
• operators and owners of illegal casinos can receive up to 2 years in prison;
• advertising online gambling and casinos in social networks and instant messengers is also prohibited.

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Public policy

Thailand has supported a tough ban for decades, motivating it to protect society from dependence and financial problems.

However, the high interest of citizens in gambling, as well as the development of neighboring markets - Cambodia, Laos and Myanmar, where casinos are allowed - create pressure on the government.

In 2023-2024, the Thai government began discussing a project to legalize integrated casino resorts (IR), following the example of Singapore and the Philippines.

The project involves:

• opening of 5 major gambling zones in tourist regions (Bangkok, Pattaya, Phuket, Chiang Mai, Ubon);
• licensing of operators under strict control;
• tax rate of 17-20% of profit;
• banning low-income citizens from casinos.

The plan is before parliament and could be passed by 2026.

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Online gambling

At the moment, online gambling is prohibited, but thrives in an illegal form.

The Thai Economic Policy Research Institute (2024) estimates that there are more than 1.5 million active online players in the country, and the total market volume exceeds 400 billion baht (≈ $11 billion) per year.

How the market works:

• Players use offshore sites registered in Curaçao, the Philippines, Cambodia and Laos.
• Popular brands: 1xBet, W88, Fun88, BK8, Parimatch, Stake, Bet365.
• Payment is made through TrueMoney Wallet, cryptocurrency (USDT, BTC) or intermediaries in Telegram.
• VPNs and site mirrors are used for access, since domains are regularly blocked by the Ministry of Digital Economy and Society (MDES).

In 2023, the ministry blocked more than 20,000 casino and bookmaker sites, but access is restored within a few hours.

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Legal forms of gambling

1. Government Lottery Office (GLO)

held twice a month (on the 1st and 16th);

covers more than 25 million participants;

28% of profits go to the state budget.

2. Horse racing at racecourses (Royal Bangkok Sports Club)

the only legal type of sports betting;

under the control of the Ministry of the Interior.

All other types of gambling (poker, roulette, machines, bingo, online money games) are prohibited by law.

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Economic impact

Although gambling is officially banned, Thailand is losing billions of dollars in capital leaks to neighboring countries:

• residents visit casinos en masse in Cambodia (Poipet), Laos (Savannakhet) and Myanmar (Myawatti);
• more than 5 million Thais spend money annually in foreign gambling zones.

The Bangkok Post estimates that if casinos are legalized in the country, the budget could receive up to 100 billion baht ($2.8 billion) in tax revenue annually.

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Social aspect

Buddhism - the country's main religion - has traditionally condemned gambling as a source of suffering and family destruction.

However, more than 50% of the population participate in lotteries, and more than 10% in unofficial bets and card games.

The main problems are:

• rising debts due to illegal rates;
• youth participation in online gambling;
• fraud in Telegram groups and casino applications.

The government is promoting a "Stop Gambling, Start Saving" campaign aimed at reducing gambling addiction.

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Cryptocurrencies and the shadow sector

Thailand officially recognizes cryptocurrencies as digital assets, but their use for gambling is prohibited.

However, many illegal operators accept deposits in USDT, Bitcoin, Ethereum, Tron.

In 2024, police identified more than 1,000 crypto accounts linked to illegal casinos and seized assets worth more than 800 million baht.

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Development prospects

Thailand is on the verge of legalising the casino industry in what could be the biggest reform in decades.

Government plan:

1. Establishment of tourist gambling complexes (IR) modeled on Singapore and Macau.

2. Introduction of an online gambling licensing system with a 20% tax.

3. Tightening control over illegal platforms and offshore.

4. Creation of the Responsible Gaming Center under the Ministry of Finance.

If the law is passed, Thailand could become Southeast Asia's new hub for legal gambling, competing with Macau and Singapore.

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Thailand is a country where prohibition and reality have long diverged.

Gambling is officially banned, but millions of Thais bet online every day using VPNs and offshore sites.

The state is aware of the economic potential of the gambling industry and is preparing for the partial legalization of casinos and online gambling.