Thailand and the debate over the casinos legalization: The lessons from Philippines and Singapore

The interest in casinos reflects Thai society’s long-standing familiarity with gambling. However, in the past, legal casinos existed in Thailand only briefly, and that was a long time ago.

Now, the government is pushing for their return, sparking both support and opposition. Many are watching closely to see whether legal casinos in Thailand will materialize, what form they will take if they do, and, most importantly, what impact they will have on Thai society.

Lessons from the Philippines

The Philippines serves as an example of a country that legalized casinos but did not achieve the desired outcomes.

The Philippine government first allowed casinos in 1977, with the same rationale as Thailand’s current proposal—to generate revenue from foreign tourists. Initially, the casino industry thrived, featuring casino resorts similar to the model being proposed in Thailand. However, over time, locals began gambling excessively, beyond regulatory control, leading to rising crime rates, severe debt problems, and broader social issues.

The situation worsened due to widespread political corruption and increasing economic inequality driven by population growth.

In 2016, President Rodrigo Duterte legalized online gambling, including online casinos, sports betting, and other forms of wagering, primarily targeting Chinese gamblers. The goal was to regulate illegal gambling operations and bring them under government oversight. However, this approach failed, as both legal and underground gambling continued to coexist.

Between 2016 and 2020, online gambling flourished and generated substantial revenue for the country. However, it also led to major problems such as human trafficking, cyber fraud, money laundering, and illegal immigration. By July 2024, President Ferdinand Marcos Jr. decided to shut down all legalized online gambling, citing national security concerns and its links to organized crime.

The Current State of Casinos in the Philippines

Traditional brick-and-mortar casinos remain legal in the Philippines, but online gambling—once aimed at attracting foreign tourists—has been completely banned. The government concluded that the "revenue gained" was not worth the "social costs incurred."

Furthermore, crime rates in the Philippines have surged significantly over the past 6–7 years, making it the country with the highest crime rate in Southeast Asia. As a result, foreign tourist arrivals have declined sharply.

Lessons from Singapore

Singapore is considered a successful country in operating casinos, utilizing the Integrated Resorts (IRs) model, which combines the tourism industry with strict regulatory measures to minimize the negative impacts of gambling. This policy allows Singapore to generate revenue from tourists without significantly affecting its local population.

Singapore's casino model is highly regulated and limited, differing from countries with liberal gambling laws. The government permits only two casinos: Marina Bay Sands (MBS), operated by Las Vegas Sands, and Resorts World Sentosa (RWS), operated by Genting Group. Both must be part of an integrated resort that includes hotels, convention centres, shopping malls, and world-class entertainment facilities, ensuring a steady influx of tourists and year-round revenue, rather than relying solely on weekend traffic.

Singapore enforces strict casino regulations through laws and regulatory bodies such as the Casino Control Act (CCA), the primary legislation governing casino operations, and the Casino Regulatory Authority (CRA), which oversees licensing and compliance. Additionally, the Ministry of Home Affairs (MHA) and the Monetary Authority of Singapore (MAS) play key roles in preventing money laundering and financial crimes.

To curb gambling addiction, Singapore implements strict control measures, including entry fees for citizens and permanent residents. The fees are set at S$150 (approximately 4,000 THB) per day or S$3,000 (approximately 90,000 THB) per year to limit access and prevent excessive gambling. Furthermore, Exclusion Orders can be issued for individuals facing financial difficulties, allowing them to self-exclude or enabling family members to request a Family Exclusion.

In terms of financial oversight, Singapore enforces stringent Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) measures. Casinos must implement Know Your Customer (KYC) protocols to verify players’ identities, restrict cash transactions exceeding S$5,000, and report any suspicious transactions (Suspicious Transaction Reports – STR) to relevant authorities.

Singapore's casino model has successfully attracted high-spending tourists, particularly from China, Indonesia, and Malaysia, boosting the tourism industry and generating substantial employment in the service sector. However, the government has maintained a cap of two casinos until 2030, requiring further investment in resort expansion for license renewal. Additional regulatory measures may also be introduced to mitigate potential social issues related to gambling.

With its strict regulations and sustainable development approach, Singapore has leveraged casinos as an economic driver without causing severe social problems. This model serves as a benchmark for other countries considering the development of integrated resorts under stringent regulatory frameworks.