As Thailand’s government urgently seeks new revenue streams to stabilize its budget, one of the country’s largest untaxed economies continues to operate in the shadows: the illegal gambling kickback system, reportedly worth tens of billions of baht each year.
Investigative reporting by The Nation and Post Today has brought to light the inner workings of this massive underground network — a parallel economy feeding a web of local influencers, law enforcement officers, and allegedly even senior political figures.
💰 A Hidden Empire: 1.1 Trillion Baht in Annual Gambling Activity
Estimates suggest that Thailand’s illegal gambling industry rakes in 1.1 trillion baht annually. Within that, a kickback system valued at 45–78 billion baht per year serves as protection money to shield operations from legal action.
- Physical gambling dens
- Kickback rate: 5–8%
- Estimated annual kickbacks: 30–48 billion baht
- Online gambling platforms
- Kickback rate: 3–6%
- Estimated annual kickbacks: 15–30 billion baht
None of this revenue is taxed, audited, or subject to oversight, making it one of the largest unregulated sectors in the country.
🧱 The 3-Tier Power Chain
At the heart of this system lies a structured chain of influence:
- Operators → Pay local protectors (often influential community figures)
- Local networks → Include police, administrative staff, and some local government officials
- High-level beneficiaries → In areas with large-scale operations, payments reportedly reach senior government officials and national political actors
“The bigger the den, the more central the location, the higher the protection cost,” a source revealed.
❓ Why Doesn’t the Government Act?
Despite the possibility of generating up to 220 billion baht annually in taxes, analysts say the government’s reluctance to legalize or dismantle the system comes down to “policy inertia.” This suggests powerful individuals benefit from the current setup, turning the kickback money into a political war chest used to fuel campaigns, buy loyalty, and maintain influence.
“This is not just about money — it’s about power,” a former senior police officer noted. “Dismantling the system would require stripping influence from those who currently thrive on it.”
🚨 The Bottom Line
As Thailand grapples with financial challenges, the growing pressure to bring transparency to this shadow economy could become a turning point — but only if the political will exists to confront those at the top of the pyramid.
