The Truth About the Gambling Business in Southeast Asia

Even when a region is bursting with online gaming activity, it can still be largely unregulated. Yes, this is the reality of most countries in Southeast Asia. Punters wager through illegal sites, payments are routed via digital wallets, local laws are outdated, and market behaviour is unpredictable. However, this will all be part of an old story, thanks to the incoming innovations and changes.

From an operator’s perspective, the numbers are impossible to ignore. Thailand, Malaysia, Vietnam, and Indonesia collectively host tens of millions of active bettors. Despite the lack of formal legal frameworks, online gambling thrives. The traffic is real, demand is high, and the mobile-first user base is growing daily.

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Current State of the Industry

The gambling market in Southeast Asia is already booming. At the same time, you will not see it on official reports or regulator dashboards. In practice, millions of users across the region wager daily via offshore sites, peer-to-peer platforms, and apps. The infrastructure may be unlicensed, but the demand is overwhelming.

Thailand

This country is a prime example. For decades, gambling was officially banned, yet widespread underground activity flourished. In 2024, the government signalled a pivot and implemented a bill to legalise resort-based casinos. With broad parliamentary support and growing public acceptance, the country is inching toward regulation and regional leadership.

Vietnam

The destination is testing cautiously and allows local access to select land-based casinos under pilot schemes. The state still holds tight control, but its appetite for foreign expertise and tax revenue is growing.

Malaysia

Not all countries have yet chosen their development directions and regulatory strategies. Malaysia sits somewhere in the middle. Though officially restrictive, conversations around digital betting are becoming louder, especially as consumer preferences move online.

Indonesia

Due to strong religious and political barriers, this state remains the most resistant on paper. Yet even here, online gambling exists at scale, often via VPNs, mobile proxies, and crypto-fuelled payment flows. The tools are decentralised, the user intent is high, and enforcement is patchy at best.

Shifts in Regulations

The legal changes in Southeast Asia are primarily driven by political considerations. Governments across the region are beginning to reassess their stance on gambling out of economic and social necessity. Billions in untaxed revenue, ineffective enforcement, and rising digital adoption made regulation look like a means of control.

Thailand’s legislative movement is a notable example. Its proposed casino resort framework is a broader signal that the government sees regulation as an opportunity to contain what it cannot eliminate. Once Thailand opens the gates, others may follow in its footsteps to remain regionally competitive.

Vietnam’s incremental pilot programmes hint at a gradualist approach. Malaysia is under mounting pressure to modernise and capture digital markets, as well as formalise certain types of betting. Even Indonesia, although unlikely to regulate soon, is facing growing challenges from tech-savvy users and increasingly effective payment workarounds.

What makes this different from past reform talks is that the conversation is now public and often backed by domestic stakeholders. Regulators are being imposed by national business groups, media outlets, and even state-owned enterprises.

For gambling operators, the opportunity lies in the anticipation of how this legalisation may unfold. It may start with land-based projects or closed-loop platforms. It may involve complex licensing tiers or mandatory local partnerships. At the same time, the direction is clear, and it is moving towards the green light in legalisation.

Comparison to Western Strategies

It is a significant mistake for operators entering Southeast Asia to assume that success can be copied from Europe or North America. In theory, it is easy to take a proven sportsbook or casino platform, localise the language, and launch. In reality, this approach often leads to wasted budgets, confused users, and regulatory dead ends.

The issue is in adaptation. Southeast Asian markets are deeply diverse in culture, payment infrastructure, and user behaviour. A mobile app built for the UK may feel clunky in Vietnam. A responsible gambling feature that works in Sweden might seem intrusive in Malaysia. A bonus structure designed for US users may completely miss the mark in Indonesia.

Platforms that succeed in this region are often rebuilt, not just relabeled. They engage with local communities, prioritise mobile-first UX, and integrate seamlessly with the preferred wallets, e-commerce flows, and social platforms of each country. They also respect local sensitivities around gambling and avoid overt branding or culturally tone-deaf messaging.

Land-based partnerships are often essential. Governments are more likely to trust domestic firms than foreign operators with no local roots. A successful entry strategy in Southeast Asia will almost always involve someone already respected on the ground.

Things that often go wrong when Western models enter Southeast Asia:

• interfaces overloaded with features that confuse mobile-first users;
• payment methods limited to cards or PayPal, ignoring regional wallets;
• customer support channels that lack local language coverage or response speed;
• RG tools copied from Western compliance models, with no cultural adaptation;
• over-emphasis on aggressive promotions, seen as untrustworthy or spammy.

Succeeding here is about adjustments and collaboration. The more you treat Southeast Asia as its own universe, the better your odds of navigating it well.

Key Rules for Success

If you are serious about the business in the region, you need a strategy adapted to its realities and based on what has worked for operators already.

Major nuances to keep in mind:

1. Start small and learn locally. Begin with one country, a single product vertical, or even a pilot partnership. Use it to understand local behaviour, regulatory signals, and cultural nuance before scaling.
2. Find the right partners early. A hotel group, fintech company, or state-licensed land-based operator will become a cornerstone of your success. Governments are more open to platforms backed by local allies they already trust.
3. Build mobile-first, not mobile-friendly. Most users in the region do not own laptops. Your entire product funnel, from sign-up to deposit to bet placement, must be optimised for small screens, limited bandwidth, and tap-based navigation.
4. Customise your responsible engagement strategy. A simple copying of your RG tools from Europe will not work. You need to align them with local views on gambling, privacy, and authority.
5. Watch the politics as much as the tech. A shiny platform means little if the regulatory door shuts. Monitor legal developments, election cycles, and policy shifts closely.

Survival in Southeast Asia is about being ready when the opportunity arrives. Those who approach it as a long game are far more likely to succeed.

The Main Things about the Business in Southeast Asia

Countries like Malaysia, Indonesia, Vietnam, and other representatives of the region should not be overlooked. Its markets are active, mobile-first, and politically complex, which requires more than just a good product to succeed.

Key aspects to consider if you plan to enter:

• Gambling demand is already booming across the region despite legal grey zones and patchy enforcement.
• Thailand, Malaysia, Vietnam, and Indonesia are all at different stages of regulatory evolution.
• Western platforms often fail here because they overlook cultural nuances, mobile behaviours, and regional payment preferences.
• Success depends on trusted local partnerships, strong mobile UX, and sensitive adaptation of responsible practices.