The ex-Prime Minister of Thailand, Thaksin Shinawatra, has suggested a major change in how Thailand manages regulations concerning online betting and digital currencies.
At a public gathering held in Bangkok, Thaksin emphasized the significant financial opportunities associated with legalizing internet-based gambling. He anticipates that such a decision would yield approximately 100 billion baht ($2.89 billion) every year for the government’s coffers.
Potential Economic Impact of Legalizing Online Gambling
As a crypto enthusiast, I’ve noticed that while Thaksin may not hold an official position within the government, he still wields significant influence. He’s often seen as a powerful figure guiding the current administration, which is headed by his daughter, Paetongtarn Shinawatra.
Thaksin’s remarks align with the Thai government’s recent endorsement of a bill permitting casinos. Thaksin is capitalizing on this momentum by advocating for regulation and taxation of the unregulated online gambling industry.
Thaksin’s vision encompasses establishing a regulatory system to ensure safe access, protect minors, and mitigate problems related to gambling, by suggesting a “passport” scheme for authorized participation. Moreover, he emphasized the significant economic activity in Thailand’s gambling industry, despite its predominantly illicit nature.
It’s estimated that between 2 and 4 million Thai citizens participate in online gambling, accumulating around 300 billion baht ($8.62 billion) collectively in savings. Their combined annual earnings and losses are approximately 500 billion baht ($14.37 billion).
Proposing a 20% tax on that particular activity could generate approximately 100 billion baht annually for the government, Thaksin suggested. As for the regulatory framework, Thaksin indicated it would strive for an equilibrium between economic advantages and societal protections.
Thaksin highlighted the importance of using a regulated system for recognizing participants, which would help reduce potential harm, discourage underage gambling, and keep an eye on high-risk gamblers.
As a researcher studying this topic, I propose an approach that reflects regulatory models from nations where gambling is both legal and strictly controlled. This strategy could potentially pave the way for Thailand to tap into its currently clandestine gambling economy, generating revenue in a regulated manner.
Crypto Adoption and Financial Innovation
Beyond promoting online betting, Thaksin also advocated for wider use of cryptocurrencies within Thailand. Referencing advancements in the U.S., like the pro-cryptocurrency views of President Donald Trump and the appointment of crypto-friendly officials, Thaksin called on Thai authorities to take a more open-minded approach.
He advocated that the Thai Securities and Exchange Commission (SEC) should endorse stablecoins, which are cryptocurrencies tied to traditional assets, and investigate the feasibility of adopting cryptocurrency as a method for transactions.
Thaksin mentioned that the Thai administration is contemplating an initial endeavor for accepting cryptocurrency transactions, and the vacation spot island of Phuket could potentially serve as a trial location.
He contended that cryptocurrencies carry a low level of risk and can be viewed as an alternative means for conducting international transactions. Adopting this approach might position Thailand alongside nations like Hong Kong and Singapore, both of which are utilizing blockchain technology to spur financial advancements and attract tourism by embracing innovative digital finance solutions.
Featured image created with DALL-E, Chart from TradingView
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2025-01-15 10:41