The Digital Economy and Society (DES) Ministry is drafting the Game Industry Act to deal with sophisticated development of the video game sector, which is worth 40 billion baht per year.
The move also aims to promote Thailand as a regional gaming hub, according to the ministry.
The ministry assigned the Digital Economy Promotion Agency (Depa) to draft the law, in collaboration with the Culture Ministry, said Depa president and chief executive Nuttapon Nimmanphatcharin.
He said the draft would cover all dimensions of the game business and services, which are available on many platforms and devices.
The public and state agencies are concerned that some gaming content, especially on online games, might lead to gambling, said Mr Nuttapon. The content should be clearly defined and supervised, with regulatory conditions and a registration system, he said.
The law will seek to balance monitoring and promoting the gaming ecosystem, said Mr Nuttapon.
"The draft is expected to be completed by September, before heading to a public hearing. Then it will be submitted to the cabinet and the Office of the Council of State," he said.
Mr Nuttapon said the law is expected to come into effect next year.
He said the draft is the result of discussions between the government and private agencies to ensure it includes practical details and conditions to ensure a balance between supervision and promotion.
The draft comprises a definition of game products and services, a registration system and a supervision scheme that covers a game rating system and the promotion of the supply chain, said Mr Nuttapon.
Many online platforms on both iOS and Android offer games.
When the drafting process commenced last year, the Culture Ministry considered amending the Film Act by adding additional content to cover games.
However, the DES and Culture ministries later agreed that games should be dealt with separately under a specific law.
"Games are not merely physical activities or moving pictures, as defined by the old regulatory scheme, which is impractical for supervising the gaming ecosystem," said Mr Nuttapon.
He said the definition of gaming would cover all types on all platforms, as well as services. Some games will need to be carefully monitored as they may be misused and lead to gambling, said Mr Nuttapon.
He said the draft will require the registration of game operators, developers and platform providers -- known as publishers or game licensors under the old definition -- who distribute games in Thailand.
Mr Nuttapon said the draft will require data linkage between relevant agencies, such as the Commerce Ministry and the Revenue Department, for registrants to receive tax benefits, such as a tax deduction, to support the development of the country's gaming industry.
The benefits include tax deductions for companies that train digital workers, and tax support for Thai gaming operators to promote employment and digital skills development in the country.
In terms of supervision, the focus is on game ratings and prevention, aiming to solve problems that may arise from playing games, including online gambling and violence in games, he said.
Agencies such as the Cyber Police Bureau are expected to cooperate with authorities that oversee digital payments to ensure that supervision covers many digital aspects, said Mr Nuttapon.
In addition, the draft will contain measures to encourage Thai entrepreneurs to compete on the international stage, he said.
The draft will promote the entire supply chain, ranging from content design, character creation and animation production, to tying content into games and organising e-sports competitions to attract foreign developers to invest in Thailand. All of these can make Thailand a regional gaming hub in the future, Mr Nuttapon said.
