During a recent event in Bangkok, former Thai Prime Minister Thaksin Shinawatra laid out an ambitious plan to transform the way Thailand handles online gambling and cryptocurrency.
He passionately argued that legalizing online gambling could be a game-changer for the Thai economy, estimating this move could bring in over 100 billion baht, which is around $2.89 billion, in annual government revenue.
Despite not currently being in an official government role, Thaksin remains a key political influencer, especially since his daughter, Paetongtarn Shinawatra, leads the present administration. His insights came on the heels of the Thai cabinet’s decision to push forward with a draft law that would pave the way for legal casinos.
Thaksin proposed regulating and taxing online gambling, which exists in a legal limbo at the moment. He envisions a system that not only controls access but also safeguards young users and addresses the potential harms of gambling. His suggestion of a “passport” system aims to ensure that participation in gambling is tightly regulated. Despite being largely illegal, the gambling industry is vibrant in Thailand, as Thaksin pointed out.
He shared striking figures, estimating that 2 to 4 million Thais participate in online gambling, holding savings of about 300 billion baht, equivalent to $8.62 billion, and their annual gambling turnover might be around 500 billion baht, or $14.37 billion. Introducing a 20% tax on this activity, he suggested, could guarantee over 100 billion baht in yearly revenue.
By implementing this kind of regulatory framework, Thaksin believes Thailand can enjoy the economic advantages of gambling while putting in place necessary social protections. This controlled environment would help identify gamblers, reduce harm, prevent minors from gambling, and monitor those at high risk.
His approach takes cues from countries where gambling is both legal and strictly controlled, presenting an opportunity for Thailand to benefit from these insights and uplift its economy.
Turning to crypto, Thaksin also expressed support for expanding the use of cryptocurrencies within Thailand. He pointed to the U.S., where a pro-crypto stance is gaining ground, and encouraged Thai regulators to catch up with this trend.
Thaksin urged the Thai Securities and Exchange Commission (SEC) to back stablecoins, which are cryptocurrencies anchored by real-world assets, and to consider cryptocurrency as a viable payment method. The Thai government is even exploring the possibility of a pilot project to allow cryptocurrency transactions, with Phuket being eyed as an ideal test location.
In his view, cryptocurrencies carry minimal risks and could be adopted just like any other currency to streamline global transactions. Aligning with similar strides in countries like Hong Kong and Singapore, such a move could push Thailand to the forefront of financial innovation and tourism, leveraging blockchain technology as a major incentive.
In summary, Thaksin sees these initiatives as building blocks for a forward-thinking economic strategy, one that could integrate Thailand more fully into the digital age while driving substantial revenue and technological advancement.
