Thailand’s lawmakers, who effectively shot down a legal gambling industry over the summer, are moving toward passage of the Game Industry Act, which would regulate online social games.
Drafted in March, the legislation could become law by the end of 2025.
In addition to creating a regulator for online games, the act would ensure that features like lucky draws and points-based rewards don’t rise to the level of online gambling. The act would also empower law enforcement to block unregistered games and monitor others for compliance and safety. And, of course, it would establish a formal tax structure for the industry.
“The law is not a barrier, but rather a mechanism to regulate the gaming market to ensure fairness and facilitate free and responsible market competition,” said Nuttapon Nimmanphatcharin, head of Thailand’s Digital Economy Promotion Agency. DEPA developed the legislation in collaboration with the Digital Economy and Society Ministry and the Ministry of Culture.
According to the Bangkok Post, Nuttapon says the measure will make the Thailand gaming sector, which includes esports, more competitive globally.
Games industry valued at up to 40 billion baht
Thailand’s gaming sector is currently estimated to be worth up to 40 billion baht (US$1.23 billion). It could reach 100 billion baht within the next 10 years, Nuttapon told the Post in an April interview.
“This industry has a lot of opportunities,” he said. “Games are interconnected with many sectors, from education to entertainment and sports. In addition, games are a cultural activity in a region that has many similar elements.”
But social gaming revenue pales in comparison to that generated by a land-based casino industry. According to analysts, integrated casino resorts would make Thailand a major player in the global gaming industry, with estimated gross gaming revenue of up to 308 trillion baht per year. At that level, Thailand would be the world’s third-largest gaming market after Macau and Las Vegas.
But Thailand recently shelved a controversial measure that would have legalised casinos, following a political scandal involving former prime minister Paetongtarn Shinawatra.
Will Thailand reintroduce casino legislation?
In January, the Thai cabinet approved a draft of the Entertainment Complex Bill, which would have permitted five IRs with gaming in locations around the country. Proponents of the measure included Paetongtarn and her father, Thaksin, a former prime minister, who also supported a legal iGaming industry.
Despite pronounced public opposition, the bill seemed on its way to passage. But in July, lawmakers shelved it after Paetongtarn’s mishandling of a border conflict with Cambodia. In August, after a Thai court found her guilty of ethical misconduct, she was impeached. Her successor, Anutin Charnvirakul, has said casino legislation will not return while he holds office.
Meanwhile, passage of the Game Industry Act would make Thailand the first ASEAN nation with dedicated game legislation and the fourth in Asia, after China, Japan and South Korea.
In related news, a major games industry convention is coming to Bangkok for the first time. Gamescom Asia 2025 bills itself as “the biggest B2B2C platform for the games industry in Southeast Asia and one of the biggest in the world”. For the past decade, the convention has been held in Singapore.
Original article: https://igamingbusiness.com/casino-games/social-gaming/thailand-game-control-act-regulate-digital-social-games/
