Thailand's Historical Addiction to Gambling

In recent weeks illegal gambling has again gotten official attention in Thailand. Public health officials determined that illegal gambling dens sparked a sudden resurgence in Covid-19 infections. The national police hurriedly announced an investigation to identify the owners and masterminds behind illegal gambling dens. Former Finance Minister Korn Chatikavanich, said legalizing gambling would allow better control of the pandemic and provide the government with significant revenue. Prime Minister Prayut Chan-o-cha set up a committee tasked with overseeing investigations into illegal gambling and announced he will consider legalizing gambling. The key question, he said, was whether Thais could overlook moral strictures against gambling.

This conflict over the morality of gambling is an old one. When King Chulalongkorn came to power in the mid-19th century gambling was legal and the government derived a significant part of its income from gambling concessions that were farmed out to the highest bidder – usually a wealthy Chinese businessman. By the end of his reign in 1910, however, new laws had begun restricting and closing gambling dens despite their wide popularity and ability to generate government revenue.

This issue has a major place in our novel, Beads on a String: a Novel of Southern Siam.

One of our lead characters, a young woman named Ploi, takes over the management of the family’s legal gambling den, only to have new gambling laws implemented first in her home province of Nakhon Srithammarat. Here is an excerpt from the book told from the point of view of a Pakpanang policeman.

“Miss Ploi, I regret to inform you the government has ordered the closure of the Jaikla Casino in accordance with the Gambling Revenue Act of 1902. The provisions of this act provide for…”

“I know the provisions,” Ploi interrupted. “I have been preparing for this order for some time. What I would like to ask is why now? Why here in Nakhon? There has been no action anywhere else in the country. Why Jaikla?”

What should he say? He had prepared a speech explaining the detailed provisions of the act, but was unsure how to answer her questions.

“The Gambling Revenue Act requires the closure of tax concession casinos at the discretion of the chief of police,” he said.

 “So, the police chief, who was gambling here earlier this month, as, if I am not mistaken, were you and several of your men, suddenly decided that it was time to close the Jaikla Casino?”

“It was legal then. Soon it will not be,” he tried to explain.

“So why now? To shut us down before Chinese New Year—our biggest day of the year. How much time can you give us?”

Her direct look was disturbing. He had planned to ask for a bribe to delay the shutdown since his boss had given him a month to close up all the casinos. Being so close to her in the small room he could sense the warmth of her breath. She smelled like coconut and flowers and something earthier. He had volunteered for this assignment because he had been unable to stop thinking of her. He had tried to tell himself this was stupid, that he had to abide by the Five Rules of his yantra—including the rule against other men’s wives.

“It’s not just Jaikla, every casino in the monthon must close when the district police chiefs decide the time is right. I am sorry, but it is the law,” he offered.

She didn’t seem upset, but stood up and looked at him coolly.

“You know the Na Nakhon royal family enjoys outings here, the head of the Chinese merchants’ association and the Nakhon self-help group all come here. Some of them may still have our tokens and they will lose their money if we close before they can redeem them. How much time?”

“A month,” he blurted out. No chance now to bargain for a bribe, but he didn’t care. What he really regretted was that so soon after meeting her, the closure of the casino meant he might never see her again.

Gambling in the reign of King Chulalongkorn.

Gambling in the reign of King Chulalongkorn.

In the novel, Ploi comes to an arrangement with the policeman that allows her to continue to operate her casino. As she expands her operations, Ploi and her Chinese partner, the former gambling concessionaire, work out another arrangement with senior officials. They agree to allow occasional “raids” on their dens and provide regular “loans” to the officials in return for protection of their expanding gambling empire.

For our account of gambling, we relied extensively on James Warren excellent study, Gambling, the State and Society in Thailand, c.1800–1945.  Warren documents that by the time King Chulalongkorn inherited the throne in 1868, gambling taxes provided 20% of government revenue. The moves to ban gambling came in fits and starts with frequent exceptions, such as the state lottery and horse racing that are still allowed today. However, the biggest obstacle to suppression of gambling is the revenue it generates for corrupt police.  This income has ensured that gambling dens and underground lotteries continue to supply a market demand that has never faltered. As Ploi’s partner says in our story:

“Thai people, from the lowliest fisherman to the wealthiest aristocrat, love to gamble. They have enjoyed this pastime for centuries. Cockfights, bullfights, cricket fights, even fights with fish—all for betting. The people love all the different card games and the cowrie games like Thua and Po. Even poor slaves bet their meager cash on their favorite numbers in one lottery or another. Shutting down the legal gambling dens does not shut down the desire to gamble. In fact, it continues more than ever, but now the government gets no revenue from it.”

Entrance to a legal gambling den about 1900 — a “First Class Gambling House”

Entrance to a legal gambling den about 1900 — a “First Class Gambling House”

Thailand’s Center of Gambling Studies and Center for Social and Business Development reported in 2020 that 57% of the country’s population, or 30.4 million Thais, gambled during the past year. This figure was an increase of 1.4 million since 2017.

As in our novel, there continue to be frequent, well-publicized police raids on illegal gambling dens – some 748 dens were supposedly raided in 2019, yet gambling continues to expand.

In the unlikely event that Gen. Prayut does legalize casino gambling, Thailand will simply be returning to the situation of the 19th century when gambling taxes provided such a big portion of state income.