The Kingdom of Thailand (formerly Siam) attracts hordes of tourists each year who flock to the country to enjoy its unique cuisine, magnificent beaches, and striking ancient temples. The country’s tropical climate and centuries-old architecture make it a fantastic tourist destination, but if you plan to gamble during your stay, do not bother visiting.
Gambling is largely prohibited on Thai territory, with the ban extending to nearly every form of betting one can think of. However, the prohibition hardly prevents locals from participating in such activities. Illegal betting is rampant here, with gambling dens and illegal bookmaking shops scattered across the country. The scope of these activities is so great that there is even an unauthorized version of the national lottery whose popularity far surpasses that of the legal lottery.
A recent study carried out in 2019 revealed that approximately 57% of residents participated in some form of gambling during that year. When applied to Thailand’s entire population, this percentage corresponds to nearly 30.5 million citizens. State lotteries are the most widespread form of gambling, with around 23 million participants.
The figures were almost equally impressive for unlawful lotteries, with around 18 million players. The number of Thais who punted on soccer was significantly lower, at only 3.5 million. Bets on the popular sport nonetheless accounted for the highest customer spend (฿160.5 billion) according to the 2019 study.
Significantly fewer citizens pursue online gaming, which also falls within the scope of the general gambling prohibition. Now that you have a general idea of the size and scope of Thailand’s gambling industry, let’s explore the laws that govern it in more depth.
Laws That Govern Gambling in Thailand
Despite its massive popularity in Thailand, gambling remains largely prohibited. The only legal and regulated forms are state lotteries and horse race betting. In 1935, the government passed legislation known as the Gambling Act B.E. 2478, which repealed many provisions of the earlier Gambling Act B.E. 2473.
Another relevant law is the Anti-Money Laundering Act, B.E. 2542, which came into force in 1999. Nevertheless, the 1935 Act remains the primary statute governing gambling in the country. The Act regulates lotteries but does not provide a clear definition of gambling. Instead, it distinguishes between two categories of games, List A and List B.
List A and List B Games
Requirements for List B Games Permits
Sanctions for Violation of the 1935 Gambling Act
The Playing Cards Act of 1943Fees and Tax Rates in Thailand
Section 16 of the 1935 Gambling Act outlines the tax rates imposed on legal gambling in Thailand. Licensed lottery organizers are subject to tax rates of up to 10% of their gross gaming revenue (GGR), defined as the difference between their gross income and the prizes paid out to lottery winners.
The tax rate for authorized bookmakers who take bets on horse races is also 10%, but it applies to their net revenue rather than to the GGR. Licensed sweepstakes and raffle organizers must contribute up to 10% of the value of all tickets sold before deducting expenses.
Thailand’s Minister of Interior is authorized to impose additional taxes on licensees who organize horse racing, sweepstake, and tote betting. The rate is up to 2.5%, and the money goes toward funding the municipalities where the gambling activities take place.
Online Gambling in Thailand
Thai law makes no specific references to remote gambling, but these activities still fall within the scope of the Gambling Act B.E. 2478. Participation in such activities constitutes a legal violation and is punishable under the country’s criminal law. The ban hardly prevents locals from wagering at offshore gambling sites, as residents rarely find themselves in hot water for placing bets with foreign operators.
Thai authorities seldom initiate legal proceedings against locals who partake in offshore sports wagering, poker, or online casino gaming in the privacy of their homes. Despite the draconian measures, approximately 70% of the population admit to using offshore gambling services on a regular basis.
Sports betting, in particular, is massive in Thailand and leads to a significant outflow of money from the country. Statistics released by the Kasikorn Research Center show that local punters collectively spent approximately ฿58 billion on football wagers in 2016 alone.
The popularity of offshore gambling sites in the country is unsurprising, considering that many foreign operators cater to Thai customers with numerous payment methods and allow transactions in the local currency, the Thai baht (THB). Many offshore operators also enable Thai bettors to fund their accounts with cryptocurrencies like Bitcoin.
The Bank of Thailand (BOT) does not legally recognize cryptocurrencies because of the lack of regulations. BOT unveiled plans in early 2021 to introduce regulations on stablecoins. These are virtual tokens whose value is pegged to the USD. If enforced, the regulations will not cover cryptocurrencies like Ethereum and Bitcoin because they are not backed by fiat currencies.
Conclusion
As you can see, the legal climate in Thailand is rather harsh when it comes to gambling. Local laws prohibit most forms of gambling activity except state lotteries and horse race betting. However, this hardly stops locals from wagering in one way or another.
A substantial percentage of Thai residents engage in online gambling at offshore websites. An equally large number make frequent visits to the illegal gambling dens spread across the country. By the looks of it, Thailand’s government has no intention of changing its stance any time soon.