Thailand has seen growth in the iGaming (Internet Gambling) sector, although its legal framework has strict restrictions on gambling. Traditional gambling is illegal in Thailand, including casinos and sports betting.Despite this, many online betting sites continue to operate freely without major disruptions.The popularity of the Internet and mobile technology has also prompted some Thais to participate in gambling activities through online platforms.
Legal environment
Thailand has a very strict legal environment for gambling. The Gambling Act (enacted in 1935) makes most forms of gambling illegal in Thailand, with some specific exceptions, such as the national lottery and certain horse racing events. However, despite the strict legal provisions, there are certain loopholes in actual enforcement, especially in the Internet area.
Market demand
Despite legal restrictions, demand for gambling remains strong in Thailand. According to Statista, the size of Thailand’s online gambling market is estimated to reach approximately US$920 million in 2023. Unable to satisfy such needs through legal means, many Thais turn to international online gambling sites. These sites are often located offshore and offer services in Thai as well as payment options in Thai baht, attracting a large number of Thai users.
Technology push
Thailand's Internet penetration rate and smartphone penetration rate are very high, which provides technical support for the growth of iGaming. According to a report by We Are Social and Hootsuite, Thailand's Internet penetration rate will reach 78% in 2023, while smartphone penetration will reach 93%. More and more Thais are accessing online gambling sites via mobile phones and computers to participate in various gambling activities, including sports betting, slot machines, poker and lotteries.
Future Trends
Possibility of legal change
Although Thailand's gambling laws are currently very strict, as online gambling becomes increasingly popular, the government may consider legal reforms to better regulate this sector. Experience in other countries has shown that through legalization and regulation, governments can reduce illegal gambling activities and generate tax revenue from them. According to the Thai Ministry of Finance, the illegal gambling market causes the government to lose about $3 billion in potential tax revenue each year.
Market expansion
With the continuous advancement of technology, iGaming has huge market potential in Thailand. For example, artificial intelligence (AI) and big data technology can help gambling platforms provide more personalized services and improve user experience. It is estimated that Thailand’s iGaming market size is expected to reach US$1.5 billion by 2025, with a compound annual growth rate (CAGR) of approximately 8.7%.
Diversification of payment methods
With the popularity of virtual currency and blockchain technology, Thailand’s iGaming market may see more payment method options in the future. This not only provides a more convenient payment experience, but also improves the security and anonymity of transactions. According to a report by Chainalysis, Thailand is the third largest country in Southeast Asia in terms of cryptocurrency trading volume in 2022, showing the growth potential of virtual currencies in the region.
The rise of online gambling
The development of mobile technology allows more and more Thais to participate in online gambling activities anytime and anywhere. According to Statista, about 70% of global online gambling revenue will come from mobile devices in 2023, and this trend is also significant in Thailand. In the future, more iGaming platforms will optimize their mobile experiences to attract and retain users.
in conclusion
Although the current legal environment in Thailand has certain restrictions on the development of iGaming, market demand and technological progress have brought huge development potential to this field. In the future, through possible legal changes, market expansion, and the promotion of the application of emerging technologies, Thailand’s iGaming market is expected to achieve sustainable development.
