The gambling industry in Southeast Asia has been evolving rapidly, shaped by diverse regulatory frameworks, market sizes, and development trajectories across different countries. Each nation is taking unique approaches to policy adjustments and industry expansion. Let’s explore the latest developments in key Southeast Asian markets.
Philippines: POGO Crackdown and the Rise of E-Gambling
A major shake-up in the Philippine gambling industry occurred in mid-2024 when the government revoked all offshore gambling operator (POGO) licenses, aiming to combat illegal activities such as human trafficking and financial fraud.
Surprisingly, the ban did not cripple the industry. Instead, gambling revenue has continued to soar. According to the Philippine Amusement and Gaming Corporation (PAGCOR), total gambling revenue in 2024 reached 410.5 billion PHP ($7.8 billion USD)—a 25% year-on-year increase, surpassing initial targets. Projections for 2025 indicate further growth, estimated at 450–480 billion PHP ($7.8–8.3 billion USD).
Key drivers behind this growth include:
- Expansion of e-games and integrated resorts, drawing high-end international players.
- PAGCOR’s tax reductions for e-games (from 35% to 30%) and integrated resort-based online gaming (down to 25%) to support operators.
- A 14% increase in gaming licenses issued in 2024, totaling nearly 1,200 licenses, along with a fivefold increase in gaming service providers compared to 2023.
PAGCOR is betting big on the future of e-gaming and integrated resorts!
Thailand: Legalization Efforts Gain Momentum
Thailand has made significant strides toward legalizing gambling. On January 13, 2025, the Thai Cabinet approved a draft bill proposing the establishment of casinos within large entertainment complexes, featuring hotels, shopping centers, and conference centers to boost tourism and investment.
Expected Economic Impact:
- A 5–10% increase in foreign tourist arrivals.
- Up to 220 billion THB ($6.3 billion USD) in additional tourism revenue.
Key Provisions of the Bill:
- Foreigners enter casinos for free.
- Thai citizens must meet entry conditions: Initially, a 50-million-THB fixed deposit was required, but the latest draft (March 3) revised it to a three-year tax proof requirement instead.
- Casinos must be physically separated from other entertainment venues, with a maximum area of 10% of the resort space.
As of February 2025, the “Casino Law” bill is in its final public consultation phase and is expected to be submitted to the Cabinet on March 11. If passed, it could be enacted by Q1 2026, alongside the “Entertainment Complex Business Bill.”
International Interest & Challenges: Major global operators—including Resorts World Sentosa, Las Vegas Sands, and MGM Resorts—have expressed interest. However, concerns remain about:
- Strict entry restrictions limiting the local customer base.
- Religious and social resistance in a Buddhist-majority nation with widespread underground gambling.
Singapore: A Well-Regulated, Thriving Market
Singapore’s gambling industry is dominated by two integrated resorts: Resorts World Sentosa and Marina Bay Sands. These establishments have successfully blended gambling with tourism, contributing significantly to the economy.
Key Regulatory Updates:
- Casino entry fees for locals increased to 150 SGD per day or 3,000 SGD per year to curb impulsive gambling.
- Marina Bay Sands announced an $8 billion USD expansion (IR2), adding a fourth hotel tower, a new gaming area, and a 15,000-seat arena.
- Resorts World Sentosa’s casino license was renewed for two years (instead of the usual three) due to the need for improved tourism performance.
Cambodia: A Booming Yet Controversial Market
Cambodia’s gambling sector has expanded rapidly, drawing international investors and tourists. As of late 2024, the Cambodia Commercial Gambling Committee had issued 195 casino licenses, with over 100 based in Sihanoukville.
Industry Growth:
- 2024 gambling tax revenue: $60 million USD (85% YoY increase).
- 2025 forecast: $70 million USD.
However, Cambodia faces significant regulatory and criminal challenges, including:
- Illegal online gambling operations linked to human trafficking, money laundering, and fraud.
- Reports of Chinese nationals being kidnapped, trafficked, or forced into cyber scams.
- Government-imposed restrictions on online gambling licenses and intensified crackdowns led by Prime Minister Hun Manet to restore national security and reputation.
Other Southeast Asian Markets: Diverse Policies
As the Philippines phases out POGOs, operators are relocating to Thailand, Dubai, or Cambodia—though each presents legal and operational risks.
In response to fraud-related concerns, regional governments have launched an anti-scam crackdown, focusing on illicit gambling operations in Myanmar’s border regions. Recent efforts have:
- Rescued nearly 5,000 Chinese nationals from scam centers.
- Led to mass arrests and deportations in coordination with Chinese authorities.
Additional Country Snapshots:
- Malaysia: Home to Genting Highlands, Southeast Asia’s only other legal casino outside Singapore.
- Indonesia & Brunei: Maintain strict anti-gambling laws.
- East Timor: An emerging market with potential policy shifts.
Conclusion
Southeast Asia’s gambling landscape is in flux, with countries adopting varied regulatory strategies based on economic goals and social concerns. While market expansion and legalization efforts create new opportunities, operators and investors must navigate strict regulations, social resistance, and compliance risks.
Balancing economic growth with social responsibility will be the key challenge for governments moving forward.
