Thailand Fears Tidal Wave Of World Cup Internet Betting

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Wednesday, June 4th, 2014 | Written by Charles Washington

The whole world is currently awaiting the kick-off to the 2014 FIFA World Cup in Brazil, scheduled to get underway on June 12th. Each year viewership of the spectacular tournament reaches new heights and this year is expected to boast 310 million people tuning in to watch this summer’s football tournament on a daily basis.

While most countries are excited over the prospect of watching the best teams in the world battle it out for soccer’s ultimate prize, the Southeast Asian country of Thailand, however, is apparently concerned that the global competition will lead to a tidal wave of online sports betting inside the country of 65 million people, as reported by the Bangkok Post.

Illegal betting on increase

Although Thailand is a great place for a holiday, it is not the place for gambling as the country has very strict gambling laws with its 1935 Gambling Act prohibiting all betting on contests of any kind with the exception of the state lottery and domestic horse racing. Nevertheless, estimates suggests around 70% of adult Thais gamble on a regular basis, generating around $6 billion in revenues each year.

Soccer betting has also been increasing at an alarming rate over the past decade and although at present 80% of football gambling in Thailand involves placing bets through agents, experts predict this will soon be replaced completely by online betting, usually via foreign internet gambling sites.

Concerns on effects of online gambling on young people

Despite being a relatively poor country, a 2013 Centre for Gambling Studies of 5,000 people over the age of 15 revealed that 57% of people surveyed were gamblers. From that tally, 9.41% concentrated on football betting, spending on average 260,000 baht (US$7,959) per person each year.

In addition, the study suggests that 19.21% of all the gamblers surveyed were problem gamblers and, not surprisingly, concerns over the figures and particularly how they affect the lives of young people have been expressed by non-profit organizations such as Family Media Watch. As the charity’s vice-president Charnchai Vikornvongvanich, explains:

“If family members provide such support once, there is no doubt that it will happen again, and the second time the debt will be larger because gamblers want to win back their losses. What we need is a ‘how-to’ book that can teach us how to deal with these issues, because we are unable to solve them by ourselves.”

Online betting doesn’t have same stigma as underground agents

Whereas in the past the stigma of dealing with shady agents and underground casinos meant many people were put off gambling, the proliferation of betting sites offering a range of incentives, such as bonuses and refunds on losses, has meant online betting is now being viewed as a new and acceptable form of gambling. As a result, it is feared the upcoming World Cup will spawn an unprecedented rise in online gambling.

According to Dhurakij Pundit’s Faculty of Economics lecturer, Visanu Vongsinsirikul, Thailand currently has four major football gambling agents, the biggest of which is a Malaysian online gambling business. Although the Ministry of Information and Communication Technology has the right to shut down illegal sites in contravention of the 2007 Computer Crime Act, up until now the unit has concentrated wholly on pornographic websites and those sites which pose a threat to Thailand’s security, 100,000 of which have made it onto the country’s ever-growing blacklist.

As well as not being the focus of the Ministry, catching online gamblers is increasingly seen as a near impossible job, especially as prepaid mobile phones which do not require registration represent an estimated 95% of the market. The task has therefore become even more demanding over the past few years as the mobile phone market continues to expand exponentially. The situation may also become more untenable, however, as viewing figures are expected to rise from 188 million people in 2010 to 310 million people this year. As Arris’ senior VP of EMEA, Steve McCaffrey, explains:

“Viewing figures for 2010 versus expected viewing figures for 2014 are exponentially different. In terms of the expectation in the World Cup – this is in addition to watching on the television – 63% will watch across computers, 23% across smartphones, and 25% across tablets.”

Regulation the answer?

Although some gambling analysts view internet wagering as hard to police, Pol Col Niwate Arpawasin, a superintendent at the High-Tech Crime Unit, suggests the country should now consider an altogether different approach on the issue, citing legislation as the way forward. As Niwate, explains:

“We are still stuck in the mindset that gambling is a vice under Buddhism. I think we should look around and accept that the world has changed. If we follow the same old rules, we won’t be able to solve the gambling problem and the addiction that goes with it.”