Gambling Industry in Thailand, Indonesia, and Vietnam

The casino market is one of the most dynamic areas of the digital segment of the economy. Among the promising regions, Southeast Asia deserves the operators’ special attention.

Indonesia, Vietnam, and Thailand attract owners of entertainment projects with the population size, the spread of mobile Internet, and interest in iGaming content.

However, entering the markets of these countries is associated with certain difficulties. Entrepreneurs need to deeply study the legal framework, the preferences of local people, the specifics of making payments, and much more.

Rosloto experts talk about the key challenges and opportunities of running a gambling business in Indonesia, Thailand, and Vietnam. There are legal, technical, and cultural reasons for that. We will help you launch a successful casino platform in Asia.

Brief Overview of the Market

More than 670 million people live in the region. A significant part of the population is a young generation that actively uses phones and the Internet. More than 90% of Thais visit the Web using mobile gadgets. In Vietnam and Indonesia, this figure exceeds 80%.

The list of popular financial instruments includes:

• e-wallets;
• QR transfers;
• local fintech solutions.

All this contributes to the development of the iGaming industry. However, access to legal entertainment is limited by law, which entails the activation of the illicit market:

1. According to publications in the Thai media, the annual turnover of the shadow online casino sector exceeds $1.5 billion.
2. The Indonesian Ministry of Communications (Kominfo) has repeatedly published information about the mass blocking of gaming sites: in recent years, access to more than 800,000 resources has been closed.
3. In Vietnam, official investigations regularly uncover illegal networks with a turnover of hundreds of millions of dollars. The data presented indicates the enormous popularity of entertainment for money in the countries of Southeast Asia.

In the 3 states mentioned in this article, the gambling business is partially or completely banned. However, this has not led to a decrease in user interest. High engagement metrics are achieved through the use of social networks, instant messengers, and streaming platforms.

Modern technologies and digital solutions offer additional opportunities for marketing expansion, but it is important for operators to adapt their communication tools to local particularities.

Legal Regulation of iGaming in Southeast Asia

There are restrictions on betting in the region. This carries certain risks for entrepreneurs who want to do business here.

Vietnam

Online gambling is prohibited by law. There are legal land-based establishments, but they are primarily aimed at tourists.

In 2017, an experimental government program was launched, according to which citizens of the country could visit traditional casinos. To do this, it is necessary to meet certain conditions, including:

• age from 21 years;
• confirmed monthly income of at least $430;
• no objections from the family (parents or spouses).

A limited number of establishments were accepted into the program (for example, Corona Resort & Casino on Phu Quoc Island). Operators are required to keep records of local gamblers and make relevant reports to the government commission.

The implementation of the pilot project is aimed at reducing the level of the shadow segment and controlling financial flows related to the gambling industry. Initiatives to scale the program were discussed in 2022–2023, but the final findings have not been published at the time of writing.

The state is paying increased attention to the online casino niche, trying to control traffic and monetary transactions. Local platforms are blocked, but the Vietnamese can play on foreign websites using VPN services.

The spread of smartphones, mobile Internet, and electronic payment systems contributes to the development of the grey market.

Indonesia

All types of gambling are banned in the country, both online and offline. The violation of the law entails criminal liability and imprisonment for up to 10 years. The Kominfo state regulator blocks entertainment portals — since 2018, access to more than 800,000 resources has been denied.

Despite strict prohibitions, the local population continues to place bets on casino platforms. For this purpose, various digital solutions are used:

• VPN systems;
• anonymisers;
• third-party applications.

Today, Indonesia is among the top 5 countries in terms of the number of downloads of such products.

The 6Wresearch Centre for Market Analysis and Consulting predicts that by 2026, the volume of gambling in the state may exceed $8.5 billion. Among the most popular areas, we can name the following:

• bets on sports events — 38%;
• poker, blackjack, and other card games — 26%;
• slot machines — 15%;
• lottery draws — 11%.

When planning to enter this market, entrepreneurs should consider all possible risks. It is necessary to pay special attention to the data storage and protection system.

Thailand

The prohibition of gambling has been in force since 1935. However, there are 2 exceptions — betting on horse racing and the state lottery. Online entertainment here is totally illegal.

To control the digital niche and block virtual casinos, the government cooperates with providers and intelligence services. To bypass the bans, Thais use proxy servers and VPN systems.

A government program on the possibility of legalising online bookmakers as a potential source of budget revenue is currently being developed.

Audience Behaviour in Southeast Asia

Let us consider the features of gambling in Vietnam, Thailand, and Indonesia.

High Demand Under Restrictions

Despite legislative prohibitions, local players take the following actions to have fun:

• use proxy servers and VPN services;
• register on foreign entertainment portals;
• make deposits via electronic payment systems and cryptocurrency wallets.

According to several studies, almost 40% of Internet users from Southeast Asian countries have participated in online gambling at least once.

Common Formats

Customers’ preferences depend on the specific region, but there are some typical interests:

• bets on the results of sports events;
• card entertainment (mostly, poker);
• slots and mobile solutions.

Local games adapted to local traditions remain at the peak of popularity — for example, Qiu Qiu in Indonesia or Pai Gow in Vietnam.

Payment Methods

Most often, players use electronic wallets:

• Gopay;
• MoMo;
• TrueMoney, and others.

Cryptocurrency transactions remain prevalent. Digital tokens are chosen because of the ability to maintain anonymity. Bank cards are not so much in demand among clients, since there is a probability of blocking transactions by regulatory authorities.

Legal and Operational Risks for Casinos

Running an entertainment business in Southeast Asia is directly related to several threats.

Criminal Liability

In each of the 3 countries of the region, gambling activities without official permission are strictly prohibited.

The main risks include:

• fines and imprisonment of local entrepreneurs;
• confiscation of property;
• online casino blocking.

Foreign operators working from abroad are subject to local legislation.

Closure of Gaming Sites and Restrictions on Transfers

Regulatory authorities constantly monitor the Internet environment and block digital resources and applications related to the placement of bets.

Each of the countries has implemented different initiatives:

1. In Thailand, the termination of activities is carried out after receiving a corresponding request from the police department. In this case, a court decision is not required.
2. In Indonesia, a special service is used to filter content.
3. In Vietnam, not only are online casinos blocked, but also payment channels.

Transfers related to gambling usually fall under the “suspicious” category, which creates several threats for entrepreneurs, including:

• refusals to conduct transactions;
• return of transfers;
• account blocking;
• additional checks.

Online casino owners need to implement alternative methods of making deposits. For example, it is possible to use cryptocurrency wallets.

Besides, entrepreneurs need to implement and establish AML mechanisms — a system of measures to combat money laundering. In the gambling industry, such a regulation provides for:

• user verification in accordance with the KYC (Know-Your-Customer) principles;
• transaction monitoring and detection of suspicious activity;
• information of regulatory authorities in case of atypical transfers, etc.

For digital entertainment platforms, the application of AML tools is not only an obligation but also a way to maintain a good reputation.

Technological and Promotion Methods for Entering the Market

To successfully work in regions with high demand but severe restrictions, it is imperative to adapt to the local environment.

Mobility and Anonymity

More than 80% of players from Southeast Asia use smartphones to place bets. Entrepreneurs need to:

• adapt the interface for personal gadgets;
• optimise download speed;
• ensure low traffic consumption;
• support the work through proxy servers and VPN services;
• offer the possibility of paying from mobile wallets.

Product Localisation

This implies compliance with the environment:

• full localisation of content (language, currency, visual design, etc.);
• inclusion in the catalogue of regional entertainment;
• the need to take into account religious and social norms.

Features of Promotion

For marketing activities, it is recommended to choose the following channels:

• partner programs (affiliate marketing);
• advertising through messengers popular in a particular country — Zalo (Vietnam), Line (Thailand), and others;
• reviews in thematic blogs.

Guaranteeing Security and Building Trust

In regions with grey markets and government restrictions, the following aspects should be considered:

• encryption of user data;
• anonymous registration;
• cryptocurrency payments;
• multi-level control systems aimed at preventing fraud.

The Main Things about iGaming Platforms in Southeast Asia

Indonesia, Vietnam, and Thailand are countries where casino entertainment is officially banned, but the grey sector thrives here.

Those operators who plan to attract customers from these countries need to take into account the following aspects:

• Despite the bans, the local population finds ways to access foreign online casinos. To do this, they use VPN services and proxy servers.
• More than 80% of gamblers from Southeast Asia use smartphones. Entrepreneurs must adapt their platforms to personal devices.
• State regulatory bodies monitor and block transfers from bank cards. Project owners are advised to add electronic and mobile wallets, as well as cryptocurrency gateways, to their websites.

The article was prepared by Rosloto experts. We have vast experience in launching successful online casinos in different parts of the world. Our specialists will help you select the best jurisdiction.

The studio’s services include the development of turnkey platforms, the integration of entertainment from well-known providers, and the implementation of marketing campaigns. We know how to make your project profitable in the shortest possible time!