Former Thai Prime Minister Thaksin Shinawatra has proposed a significant shift in Thailand’s approach to online gambling and cryptocurrency regulation.
Speaking at a public event in Bangkok, Thaksin outlined the economic potential of legalizing online gambling, a move he estimates could generate over 100 billion baht ($2.89 billion) annually in government revenue.
Potential Economic Impact of Legalizing Online Gambling
Thaksin, although not holding a formal role in government, remains a prominent political figure and is widely considered an influential force behind the current administration led by his daughter, Paetongtarn Shinawatra.
The comments from Thaksin coincide with the Thai cabinet’s recent approval of a draft law to legalize casinos. Thaksin’s suggestions build upon this momentum, emphasizing the need to regulate and tax the online gambling sector, which currently operates in legal grey areas.
His vision includes implementing a system to control access, safeguard underage users, and manage gambling-related harm, proposing a “passport” system for regulated participation. Thaksin also highlighted the substantial economic activity within Thailand’s gambling sector, despite its largely illegal status.
He noted that approximately 2 to 4 million Thais engage in online gambling, collectively holding 300 billion baht ($8.62 billion) in savings, with gains and losses amounting to 500 billion baht ($14.37 billion) annually.
By taxing this activity at a 20% rate, the government could secure over 100 billion baht in yearly revenue, he suggested. According to Thaksin, the proposed regulatory framework would aim to balance economic benefits with social safeguards.
Thaksin emphasized that identifying participants through a controlled system could minimize harm, prevent underage gambling, and monitor high-risk users.
This approach mirrors similar models in countries where gambling is legal but tightly regulated, creating a pathway for Thailand to monetize this underground economy.
Crypto Adoption and Financial Innovation
In addition to online gambling, Thaksin advocated for broader cryptocurrency adoption in Thailand. Citing developments in the United States, such as the pro-crypto stance of US President Donald Trump and the appointment of crypto-friendly officials, Thaksin urged Thai regulators to adopt a more progressive stance.
He called for the Thai Securities and Exchange Commission (SEC) to support stablecoins—cryptocurrencies backed by assets—and explore the potential of using cryptocurrency as a form of payment.
Thaksin noted that the Thai government is already considering a pilot project to allow crypto payments, with the resort island of Phuket being a possible testing ground.
He argued that cryptocurrencies present minimal risk and should be seen as another form of currency to facilitate global transactions. Such moves could align Thailand with other countries such as Hong Kong, and Singapore leveraging blockchain technology to drive financial innovation and tourism.
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