Thai Casinos: Haven or Hazard for ‘Grey’ Chinese Money?

[webfact]

File photo for reference only //Wikipedia

 

ANALYSIS

 

Thailand sits at a crossroads as debates swirl around the potential opening of entertainment complexes and casinos, with looming concerns over their possible misuse as venues for money laundering by ‘grey’ Chinese businesses.

 

People’s MP Rangsiman Rome voiced these concerns yesterday, raising the spectre of illicit activities seeping into Thailand's gaming industry.

 

At the heart of the matter is the possibility that these establishments could act as conduits for laundering money from illicit activities such as call-centre scams, online gambling, and cross-border drug operations.

 

The term 'grey' Chinese refers to businesspersons whose operations straddle the hazy line between legal and illicit, often finding creative solutions to mask the origins of their funds.

 

Rangsiman Rome. Picture courtesy: Thai Post

 

Rangsiman’s critique is timely, as the Thai government embarks on a legislative journey to establish entertainment and gaming hubs, a move intended to boost tourism and generate significant revenue. These plans, however, do not yet include robust measures to prevent illegal activities.

 

The absence of rigorous regulations and monitoring processes could inadvertently transform Thailand’s casinos into attractive destinations for shady operators looking to ‘clean’ their money.

There’s also the question of competition in the region. Countries like Japan, particularly with their casinos in Osaka, alongside Macau and Singapore, have already established themselves as global gaming centres. They attract not only tourists but also substantial international investment.

 

Thailand’s allure must be balanced carefully to ensure it draws legitimate business without courting unwanted illegal activities.

 

This legislative push comes as Thailand’s Pheu Thai-led government weighs the economic boost against the potential reputational risks. There’s promise in the planned development of these entertainment complexes, which are expected to bring billions of Thai Baht into the economy and create jobs.

 

However, transparency and firm regulations are crucial. Authorities must develop strategies to deflect any potential infiltration by illicit entities.

 

If casinos are to open their doors, they should do so under strict scrutiny, with policies that include comprehensive background checks, financial monitoring, and collaboration with international agencies to track suspicious capital flow.

 

Ultimately, if managed ineffectively, the lure of quick gains through casinos could become a double-edged sword. While they promise economic prosperity and global allure, they also pose significant risks if not tightly regulated. In a region with notorious financial crime challenges,

 

Thailand needs to ensure that its future casinos don’t become easy prey for those looking to exploit legal loopholes. This is not just about casino chips on the table, but a decisive moment for Thailand to define its stance on illicit money flows within its borders, write Thai Newsroom Reporters.

 

-- 2025-01-15

 

 

[Artisi]

Nothing will change to what is currently happening, the only difference being the casinos will be legal. 

[MikeandDow]

this is going down the same route as the Cannabis debacle

[Tropicalevo]

2 hours ago, Artisi said:

Nothing will change to what is currently happening, the only difference being the casinos will be legal. 

 

I disagree.

Thailand will become the mega-hub of money laundering.

Scams will increase - especially involving fake money (Bitcoin etc)

Even more criminals and undesirables and netizens will become outraged as they are not getting a slice of the action.

[Gottfrid]

2 hours ago, webfact said:

People’s MP Rangsiman Rome voiced these concerns yesterday, raising the spectre of illicit activities seeping into Thailand's gaming industry.

He is very right in what he say. Money laundering is very much represented all over the world regarding gambling business. The MGA and CGCB has been having a lot of problems with it regarding online gambling providers as well. Even Sweden, with their very strict license and gambling regulation, has started to co-op with gambling providers to fight money laundering. Now Thailand thinks they can start from scratch with a gambling regulation that probably resemble the rest of the laws looking like a Swiss Cheese with holes of opportunities. This is already laid out for total disaster.

[MikeandDow]

1 hour ago, Gottfrid said:

He is very right in what he say. Money laundering is very much represented all over the world regarding gambling business. The MGA and CGCB has been having a lot of problems with it regarding online gambling providers as well. Even Sweden, with their very strict license and gambling regulation, has started to co-op with gambling providers to fight money laundering. Now Thailand thinks they can start from scratch with a gambling regulation that probably resemble the rest of the laws looking like a Swiss Cheese with holes of opportunities. This is already laid out for total disaster.

Yes agree ! The Thai goverment think by having legal casinos it will solve the economic mess!!!!

[Triton]

If Thai government open a legal casino, it should not build in Bangkok but in some upcountry like Roiet or Buriram to promote and stimulate rural economic. 

[Sydebolle]

What a joke by the semi-divine racists. All the while they blocked all non-Thai accounts with PayPal - wondering seriously, who would launder substantial money amounts through PayPal in the first place. Do they sell condos in Thailand now through PayPal and credit cards too? 

[lordgrinz]

The last thing Thailand needs is casino's and marijuana, they have a long way to go before adding even more vices to what is nothing more than a banana republic. They need to focus on corruption, transportation safety, public safety, pollution, and education. Until these things are tackled, adding Casinos and Drugs to the equation is an act of lunacy.

[phetphet]

A lot of high ups must be salivating, and rubbing their hands with glee in anticipation of the vast amounts of money to be made or cleaned.

 

If they want to get the big gamblers, they should site any casino where it is easiest for the Chinese to access. Make it easier for them to travel in and out.

[Marco51]

5 hours ago, webfact said:

File photo for reference only //Wikipedia

 

ANALYSIS

 

Thailand sits at a crossroads as debates swirl around the potential opening of entertainment complexes and casinos, with looming concerns over their possible misuse as venues for money laundering by ‘grey’ Chinese businesses.

 

People’s MP Rangsiman Rome voiced these concerns yesterday, raising the spectre of illicit activities seeping into Thailand's gaming industry.

 

At the heart of the matter is the possibility that these establishments could act as conduits for laundering money from illicit activities such as call-centre scams, online gambling, and cross-border drug operations.

 

The term 'grey' Chinese refers to businesspersons whose operations straddle the hazy line between legal and illicit, often finding creative solutions to mask the origins of their funds.

 

Rangsiman Rome. Picture courtesy: Thai Post

 

Rangsiman’s critique is timely, as the Thai government embarks on a legislative journey to establish entertainment and gaming hubs, a move intended to boost tourism and generate significant revenue. These plans, however, do not yet include robust measures to prevent illegal activities.

 

The absence of rigorous regulations and monitoring processes could inadvertently transform Thailand’s casinos into attractive destinations for shady operators looking to ‘clean’ their money.

There’s also the question of competition in the region. Countries like Japan, particularly with their casinos in Osaka, alongside Macau and Singapore, have already established themselves as global gaming centres. They attract not only tourists but also substantial international investment.

 

Thailand’s allure must be balanced carefully to ensure it draws legitimate business without courting unwanted illegal activities.

 

This legislative push comes as Thailand’s Pheu Thai-led government weighs the economic boost against the potential reputational risks. There’s promise in the planned development of these entertainment complexes, which are expected to bring billions of Thai Baht into the economy and create jobs.

 

However, transparency and firm regulations are crucial. Authorities must develop strategies to deflect any potential infiltration by illicit entities.

 

If casinos are to open their doors, they should do so under strict scrutiny, with policies that include comprehensive background checks, financial monitoring, and collaboration with international agencies to track suspicious capital flow.

 

Ultimately, if managed ineffectively, the lure of quick gains through casinos could become a double-edged sword. While they promise economic prosperity and global allure, they also pose significant risks if not tightly regulated. In a region with notorious financial crime challenges,

 

Thailand needs to ensure that its future casinos don’t become easy prey for those looking to exploit legal loopholes. This is not just about casino chips on the table, but a decisive moment for Thailand to define its stance on illicit money flows within its borders, write Thai Newsroom Reporters.

 

-- 2025-01-15

 

 

Of course gambling is everywhere, especially in SEA which seems to have an affection more than other areas of the planet. Fine, no problem except that most of SEA countries also have a double standard moral code which pushes amongst other vices that occur wanted or not in to the illegal and dark corners. And of course gambling should be legalised under the motto "if you cannot beat them join them" because illegal gambling and the siblings black money, mafias, corruption and criminality are rampant . The suspicion that keeping it illegal is profiting only said mafias, corrupt law enforcement and the money laundering armies of the corrupt is at hand and should definately be looked at more closely when deciding on legalising . The catch on the other hand as seen in many countries with legal gambling is the lack or real control as companies or individuals interested in running these establishments are in most cases the colourful legal arm of said corrupt or mafiose corporates and individuals. So in order to establish a much needed legal gambling industry to profit an always ailing social state a rigorous regulation and control must be introduced and kept up. And that is where I have my doubts here in Thailand if even in much more organised and less "laisser faire" countries-putting it nicely- are utterly failing in that aspect................an ethics commission perhaps?

[wensiensheng]

“If casinos are to open their doors, they should do so under strict scrutiny, with policies that include comprehensive background checks, financial monitoring, and collaboration with international agencies to track suspicious capital flow.”

 

how well have those things worked in every single other regulated activity? Is there a single one that isn’t riddled with corruption rendering them ineffective? If there is, I’ve yet to see it.

[Pdavies99]

The perfect scenario for high end thieves and money laundering.

[spidermike007]

Casinos are a very bad idea here, nothing to do with morality, everything to do with the inconsistency and undependility of the subsequent administrations.

 

Like next door in Cambodia billions of dollars could be invested in these casinos only to have the next clown administration vote it down and then you have more abandoned buildings and huge fortunes lost. 

 

 

[hotchilli]

6 hours ago, webfact said:

Thailand sits at a crossroads as debates swirl around the potential opening of entertainment complexes and casinos, with looming concerns over their possible misuse as venues for money laundering by ‘grey’ Chinese businesses.

Not forgetting Thai influential people...

[Funkymover]

so now even changing their gambling laws to please and help with the chinese take over 

[NorthernRyland]

How does Chinese laundering money affect Thailand though? Seems like this is more a problem for the Chinese government than Thailand itself.

[Kerryd]

6 minutes ago, NorthernRyland said:

How does Chinese laundering money affect Thailand though? Seems like this is more a problem for the Chinese government than Thailand itself.

If the international community and banking industries see Thailand being used to launder huge amounts of illegal cash, it could have significant problems resulting in restricted access to foreign banking networks, increased surveillance, increased regulation, even sanctions against gaming officials and gov't Ministers suspected of being connected to such enterprises.

[NorthernRyland]

Just now, Kerryd said:

If the international community and banking industries see Thailand being used to launder huge amounts of illegal cash, it could have significant problems resulting in restricted access to foreign banking networks, increased surveillance, increased regulation, even sanctions against gaming officials and gov't Ministers suspected of being connected to such enterprises.

in that case probably too risky to pursue. We all know it's going to happen and Thailand is prone to corruption, especially by Chinese who know how to play the system.

[brewsterbudgen]

Surely there has to be one in Pattaya - one more step to it becoming Thailand's Las Vegas! ♠️♦️

[Kerryd]

Thailand has been the "hub of corruption" for generations.

The proposed casino legislation is entirely designed to benefit the Chinese, who will likely build/own/operate most of them and where Chinese citizens (working here and tourists) will spend a lot of their money.

This proposal, along with the proposal to change the condo ownership rules "in special designated areas" and the new Visa rules, are literally done specifically with the Chinese in mind. (Sorry all you expats that seem to think the Thai economy lives and dies based on what little money your meagre pension affords you to spend here.)

China is digging it's claws into Thailand the same way it's done to Laos, Myanmar and Cambodia. Low interest "loans" to build things like high speed rail lines directly linking China and Thailand (through Laos). Prosposed "land bridges" in South Thailand to allow Chinese shipments to reach the Indian Ocean faster/cheaper and with less chance of having strategic routes blocked.
Submarine sales. Condo proposals. Casinos.

Pretty soon the subject country is so indebted to China that they have to dance to whatever tune Beijing tells them to or risk having those loans called in, projects shut down and economies collapsing.

Keep in mind that China "leased" nearly 20% of Cambodia's entire coastline - so they could build a self-contained "resort" complete with it's own water and power generation equipment, waste-treatment facilities - and casinos.

And then they built a new airport a short distance away "to bring Chinese tourists to/from the resort".

(It's all BS. The airport is actually a forward air base with runways far longer than even the largest commercial cargo and passenger jets need, but perfect for fully loaded Chinese jet bombers to take off and land on.

And the "resort" is a self-contained barracks and HQ for the troops that would be working at the air base.

And the Chinese have a 99 year lease on that property so they aren't going anywhere anytime soon.

And the Chinese have been doing a lot of corrupt practises themselves. Things that would get them shot (or hung) back in China.

But with a casino to take your cash - and give you Bitcoin in exchange - it's literally begging for corrupt money to flow in.

Casinos were already huge money laundering enterprises long before Bitcoin was invented. No reason to think they'll change in the future.

And to show how easy it is, here's an example.

Donald Trump had a casino in Atlantic City. He was losing money (in other endeavours) and missing payments on his bank loans.
At one point he was on the verge of missing a "final notice" to make a $3 million payment on a loan or the bank would foreclose on the casino.
His father sent a trusted accountant to the casino with $3 million in a briefcase. The accountant bought $3 million worth of chips, left them on the counter and walked out without making a single bet. (Bet that guy got a rather nice Christmas bonus !)

The casino not only made $3 mil in cash without having to pay out anything, but they could then resell those chips and make another $3 mil.

Technically that was illegal as it broke some Federal regulation about "illegal loans" or something but by the time the Feds found out I guess it was too late to do anything about it (lack of hard proof and such).

And that was it. $3 mil disappeared in the blink of an eye and no one, outside of the Casino operators (and the Trumps) were any wiser to it.

I would find it very hard to believe that the same thing couldn't happen here.

[black tabby12345]

8 hours ago, Artisi said:

Nothing will change to what is currently happening, the only difference being the casinos will be legal. 

 

The biggest impact is, the lighter olice workload ; no more need to bust underground gambling site.

[Graham8888]

2 hours ago, lordgrinz said:

The last thing Thailand needs is casino's and marijuana, they have a long way to go before adding even more vices to what is nothing more than a banana republic. They need to focus on corruption, transportation safety, public safety, pollution, and education. Until these things are tackled, adding Casinos and Drugs to the equation is an act of lunacy.

Yes - you nly need to look at cambodia to see the disastrous consequences of “legal” casinos