A UN expert expressed concerns about potential money laundering risks associated with Thailand's push for legalized casinos.
Thailand's pursuit of legalizing casinos within large entertainment complexes has garnered both excitement for its potential economic benefits and serious concerns about the risks of money laundering and criminal infiltration. A recent statement by a United Nations expert highlights these very dangers.
Benedikt Hofmann, deputy representative for Southeast Asia and the Pacific for the United Nations Office on Drugs and Crime (UNODC), expressed apprehension in a recent interview with VOA, warning that legalizing casinos could inadvertently create opportunities for criminal activity.
“But it also opens the door for ostensibly legitimate investments and use of the system by criminal actors for their illicit purposes, especially in a region rife with such actors,” Hofmann stated. He further drew parallels with the Philippines' experience with Philippine Offshore Gaming Operators (POGOs), noting that “creating legal licensing and regulatory frameworks for gambling operators, like the POGO scheme, did not prevent the system from being taken over by highly problematic actors,” Hofmann said.
The draft bill has been approved earlier in January and is expected to be enacted into a law within 6 months.
Despite these concerns, the Thai government is pushing forward with its plans. According to former Prime Minister Thaksin Shinawatra, a key figure in the ruling Pheu Thai Party, each entertainment complex is projected to generate approximately 20,000 jobs, providing a significant boost to local economies.
Thaksin also clarified that Thailand wants to issue casino licenses through a strict bidding process. Successful bidders will be selected based on the tourism and tax benefits outlined in their proposals. Thaksin expressed confidence that the bill will be passed within the current year.
“The truth is the license will be given out by means of open bidding in which any interested parties could compete,” Thaksin said, as reported by The Bangkok Post. “They [bidders] will have to propose what they have to offer in terms of tourism benefits and tax revenue for the government.”
Thaksin also dismissed calls from the opposition for a referendum on casino legalization, deeming it “not necessary.” He argued that critics are overly focused on the presence of casinos within the broader entertainment complexes.
As reported by The Bangkok Post, Thaksin drew a comparison with Singapore, stating, “Like in Singapore, the casino here will take up less than 10% of the space in the entertainment complex which will have many other activities to offer tourists.” He reiterated the potential for these complexes to create 20,000 jobs per site for local residents.
Thaksin concluded his address with a focus on the potential economic benefits for Thai citizens, stating, “It has to leave Thai people better off. All too often, people find all that’s left when they put their hands in their pockets are pawn tickets.”
Read related article: 2026 Enactment, Pushback From Crime Rings Await Thai IR Bill
Comments