Blazing Controversy: Thai iGaming Proposal Under Scrutiny
International Body Sends Alert on Increased Criminal Activities with Accelerated Push for Online Gaming in Thailand
The Thai government's rapid-fire strategy to legalize the iGaming market is facing fierce opposition, this time from the United Nations Office on Drugs and Crime (UNODC).
Eager to fast-track an iGaming bill, Prime Minister Paetongtarn Shinawatra's administration announced last week that the legislation could be ready within a month.
iGaming: A Hidden Crime Nexus?
However, UNODC Deputy Representative for Southeast Asia and the Pacific, Benedikt Hofmann, argues that an iGaming market could serve as a hub for criminal activities. According to Voice of America, Hofmann refers to a legal gambling model in the Philippines, POGO, which was notoriously usurped by organized crime syndicates.
UNODC's warning adds fuel to the fire lit by former senator Wallop Tangkhananurak, who claimed the urgency to legalize iGaming, worth an estimated $2.89bn in annual revenue, appears suspicious.
Mounting Resistance
In addition to the internal critique, opposition lawmaker Rangsiman Rome, head of Thailand's Committee on National Security, voiced concerns echoing Tangkhananurak's warnings. While supporting legal casinos and controlled online gambling operators, Rome questions Thailand's readiness to combat criminal operators on a global scale. Rome expressed his concern stating, "Money laundering happens every day, and it looks like the Thai authorities don't know how to stop this."
Hofmann, after observing the collapse of the POGO model, suggests potential parallels between the Philippines' downfall and Thailand's future. Hofmann warns that Thailand might face a similar predicament, as an online iGaming market can facilitate 24/7 global crime operations and amplify the exchange of both legitimate and illicit funds.
A Magnet for Money Laundering?
In addition, Hofmann contends that digital currency transactions could make it easier for criminal elements to integrate cryptocurrency transactions, thereby reducing customer touchpointsโa perfect breeding ground for money laundering. Instead, Hofmann suggests Thailand focuses on stringent vetting of investors and casino market entrants, as anticipated by 2029, without prioritizing online gambling or cryptocurrency payments.
The ongoing debate surrounding the Thai iGaming proposal sees concerns raised about its potential ties to crime and money laundering, with UNODC's Deputy Representative for Southeast Asia and the Pacific, Benedikt Hofmann, pointing to the Phillips' POGO model as a cautionary example. Moreover, opposition lawmaker Rangsiman Rome voices similar concerns, questioning Thailand's preparedness to battle criminal operators in a global scale and preventing money laundering activities that could be facilitated by the digital currency transactions in an online iGaming market.
