Safeguards needed for legal gambling
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Safeguards needed for legal gambling

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File photo dated May 27, 2022 shows the Police Cyber Task Force arresting operators at an online betting site known as ufaorc.com in Rayong province. Police Cyber Taskforce
File photo dated May 27, 2022 shows the Police Cyber Task Force arresting operators at an online betting site known as ufaorc.com in Rayong province. Police Cyber Taskforce

The government's dream of developing an integrated entertainment complex complete with a casino in Bangkok or on the eastern seaboard is facing hurdles after the Council of State last week raised an objection on the ground that such a megaproject is not relevant to the government's policy to promote a new form of tourism industry.

The Council of State also ruled that drafting a bill pertaining to the integrated entertainment complex is unnecessary as it would duplicate laws on hotels, restaurants and gambling. Moreover, the public's idea of an entertainment complex does not include a casino.

Even so, the Paetongtarn Shinawatra government seems to have another pet project at this time: legalising online casinos.

The government is adamant about legalising the lucrative online gambling business, which could earn several billion baht worth of revenue each year for operators, including criminal gangs.

According to former prime minister Thaksin Shinawatra, between 2.5 million and 4 million Thais are involved in illegal online gambling activities.

In his recent campaign speech in Chiang Rai, Thaksin said he wanted to bring online gambling above the ground so the government can earn revenue from the business through taxation.

In a swift response to Thaksin's idea, Digital Economy and Society Minister Prasert Chantararuangthong said the ministry is conducting a study on legalising online gambling. He did not elaborate.

In a purely economic sense, it is logical for the state to take a substantive share of the revenue from the lucrative gambling business instead of allowing all that revenue to go underground.

After all, it is impossible to stop Thais from gambling, legally or illegally.

So, backing the legalisation of online gambling reflects the old proverb: "If you can't beat them, join them".

It is an open secret the government's budget has been running in the red for many years in a row -- quite normal in many countries -- while tax collection is falling short of target due to an economic slowdown.

To offset the budgetary shortfall, the government resorts to borrowing, nearly maxing out its public debt threshold.

Hence, legalising online gambling in the hope of boosting taxation is a quick and logical option.

Putting online cabling on the ground can bring in a lot of revenue. The government does not have to borrow to fund infrastructure or even resort to economic stimulus schemes like digital wallets.

But that is easier said than done when one considers the kinds of problems society has been facing.

If online gambling activities are to be legalised, the government must make sure that guardrails preventing tax evasion, money laundering and negative social impacts are worked out and put in place.

To start with, there must be enforceable rules to prevent people under 20 years old from engaging in online betting.

More than 4 million young people have been drawn into online gambling, resulting in financial and health problems, according to research published in November by the Centre for Gambling Studies under the ThaiHealth Promotion Foundation.

Equally challenging the government must screen for reliable online betting operators to get decent business operators.

If not, the policy will be tantamount to helping mafia and unscrupulous officials.

When politicians talk about legalising online casinos, they do not address criminal problems such as human smuggling and money laundering that often come with it.

So, the government and law enforcers must have solutions and preventive measures to deal with those illegal operators -- some of whom are mafia linked with human smuggling and narcotics.

Last but not least, a special fund to help gambling addicts is needed.

The government can look to Britain as a model of how to manage online gambling activities, such as soccer betting on the Premier League, which is also popular among Thai gamblers.

Britain imposes a 15–21% gross gaming revenue tax on the net profits earned by gambling companies, while France imposes a 25–37% progressive GGR tax.

The government can also explore the use of artificial intelligence, blockchain systems and digital currency in online gambling in Thailand to prevent minors from gambling and monitor gambling activities.

To achieve that, the government and law enforcement agents must have enough resources to track down tax evasion and money laundering.

To legalise the industry, our law enforcers must be able to monitor and control wrongdoers. Negative social impacts are unavoidable from online gambling, be it legal or illegal. The government must carefully weigh the pros and cons and make the right decision for the country -- not just for short-term political gains.

Veera Prateepchaikul is former editor, 'Bangkok Post'.

Veera Prateepchaikul

Former Editor

Former Bangkok Post Editor, political commentator and a regular columnist at Post Publishing.

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