In Thailand, lawmakers are moving forward with the approval of the Gaming Industry Act, an initiative that seeks to regulate video games, meaning online social games and esports. The legislation, drafted in March, could become law by the end of 2025.
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The proposal would create a regulator for online games and establish clear limits to ensure that features like sweepstakes and point-based rewards do not turn into gambling. Additionally, it would empower authorities to block unregistered games, oversee compliance with regulations, and establish a formal tax structure for the sector.
“The law is not a barrier, but a mechanism to regulate the gaming market to ensure fairness and facilitate free and responsible competition,” stated Nuttapon Nimmanphatcharin, director of the Thailand Digital Economy Promotion Agency (DEPA), the entity that developed the legislation along with the Ministries of Digital Economy and Society and Culture.
A Market with Growth Potential in Thailand
The gaming sector in Thailand is estimated to be worth up to 40 billion baht (1.23 billion dollars). According to Nuttapon, the industry could reach 100 billion baht in the next ten years. “This industry offers many opportunities. Video games are interconnected with many sectors, from education to entertainment and sports,” he told the Bangkok Post.
The approval of this law would make Thailand the first country in ASEAN with dedicated gaming legislation and the fourth in Asia, after China, Japan, and South Korea.
The Contrast with Physical Casinos
However, digital gaming revenues are modest compared to the potential of physical casinos. According to analysts, integrated casino resorts could generate up to 308 trillion baht annually, making Thailand the third-largest gaming market in the world, after Macau and Las Vegas.
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In January, the Thai cabinet approved a draft Entertainment Complex Bill, which would have allowed five complexes with gambling in different locations across the country. The main proponents were then-Prime Minister Paetongtarn Shinawatra and her father Thaksin, also a former prime minister.
Despite public opposition, the project seemed on track for approval. But in July, lawmakers shelved it following Paetongtarn’s mismanagement of a border conflict with Cambodia. In August, she was removed from office after being found guilty of ethical misconduct by a Thai court.
Her successor, Anutin Charnvirakul, has stated that casino legislation will not be reconsidered while he is in office.
Meanwhile, Bangkok will host Gamescom Asia 2025 for the first time, considered the largest B2B2C platform for the Southeast Asian video game industry. For the past decade, this convention has been held in Singapore.
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