BANGKOK: As the Thai government scrambles to find new sources of revenue for the national treasury, one massive underground economy continues to operate unchecked — generating tens of billions of baht annually without ever entering the budget or tax system.
The Nation dives deep into the "gambling kickback" network, one of the most powerful illicit business systems in Thailand.
The kickback economy: An 80-billion-baht shadow system
Investigations reveal that Thailand's illegal gambling industry is worth approximately 1.1 trillion baht annually. From this, a shadowy kickback system has emerged, valued at around 80 billion baht per year. None of this money is taxed, audited, or subjected to legal scrutiny.
According to confidential documents cited by Post Today, the structure of kickback payments in Thailand is divided into two main sectors:
1. Physical gambling dens
Kickback rate: 5–8% of revenue
Estimated annual kickbacks: 30–48 billion baht
2. Online gambling platforms
Kickback rate: 3–6% of revenue
Estimated annual kickbacks: 15–30 billion baht
Total estimated annual kickbacks: 45–78 billion baht
Post Today reports that these funds are neither taxed nor traceable, and recipients are legally untouchable.
How the money moves: A 3-tier power chain
Investigative reports detail a structured flow of kickbacks through three primary levels:
1. From gambling operators → direct payments to local “protectors” or influential figures.
2. Local official networks → involving police, administrative officers, and some local government personnel.
3. Higher-level beneficiaries → especially in areas with large gambling operations or prominent online platforms, payments may reach high-ranking politicians and senior government officials.
“The bigger the den, the more central the location, the higher the protection cost,” said an insider.
The big question: Why doesn’t the state intervene?
Many are asking why the government allows this massive cash flow to persist outside the formal economy — especially when taxing it could generate 220 billion baht annually and reduce social harm.
Analysts point to “policy inertia”, a condition where the state avoids systemic change because certain individuals benefit from maintaining the status quo.
This is no longer just about money — it’s about power. The tens of billions flowing through this kickback system serve as a political war chest, funding local and national networks, purchasing influence, and potentially being funnelled back into election campaigns.
“This system is too complex to dismantle unless the power of those protecting it is taken away,” concluded a former senior police officer. - The Nation/ANN
