Thailand’s plan under pictured PM Paetongtarn to roll out a legal iGaming market within a month has come under attack from the UNDOC. [Image: Shutterstock.com]

Plans under fire

The Thai government’s plan to fast-track a legal iGaming market has come under further attack, this time by the United Nations Office on Drugs and Crime.

Prime Minister Paetongtarn Shinawatra’s new government last week revealed it was working on an iGaming bill that “could be ready within a month.”

iGaming market represents a major crime risk

According to the Voice of America, however, UNDOC Deputy Representative for Southeast Asia and the Pacific, Benedikt Hofmann, said an iGaming market represents a major crime risk. 

Hofmann said that while a legal market had benefits, it would also allow criminals to use the system for their illicit purposes, with the UNDOC representative giving the now collapsed POGO gambling model in the Philippines as a case study. 

The UNDOC’s warning adds to an internal shot fired against the iGaming bill by ex-senator who alleged “something suspicious” about the urgency to legalize the vertical worth an estimated $2.89bn in annual revenue.

Opposition mounts 

Adding to the domestic concerns over regulation voiced by ex-senator Wallop Tangkhananurak last week, who warned of a “a society plagued by vices,” is Rangsiman Rome, an opposition lawmaker in Thailand’s House of Representatives.

Thaksin Shinawatra, former Thailand PM and the father of its current leader Paetongtarn, has used his influence in recent weeks to publicly announce his daughter’s administration’s pursuit of iGaming and crypto markets.

Rome, who also chairs Thailand’s Committee on National Security, said while he backs legal casinos and limited online operators, he believes Thailand currently doesn’t have the capacity to safeguard its system against criminal operators.

“Money laundering […] happens every day, and it looks like the Thai authorities don’t know how to stop this.”

Hofmann can see parallels between Thailand and the Philippines, where despite legal licensing and regulatory frameworks for gambling operators under POGO, the system was eventually hi-jacked by organized crime gangs. 

Trouble with online

The UNDOC exec reiterated the threat facing Thailand, claiming the online crime operations run 24/7 and have a global capacity that increases the volume of both legitimate and illicit funds potentially flowing through iGaming markets.

a magnet for money laundering

Hofmann added the market would give criminal elements “easier ways to integrate crypto transactions and reduce customer touchpoints,” which is a magnet for money laundering.

The UNDOC representative said Thailand should therefore “consider foregoing online gambling and cryptocurrency payments altogether.” Hofmann recommends Thailand focuses instead on ensuring its regulators effectively vet the investors and players seeking to enter the casino market expected to launch by 2029.