Laos is set to establish a regulatory framework for online gambling, allowing licensed operators to target markets in Southeast Asia, including Thailand. The licensing model is similar to the Philippine Offshore Gaming Operators (POGOs), where operators can establish online gambling operations but cannot accept customers based in Laos.
The Laotian government is currently in the process of developing regulations for the sector, with plans to publish licensing guidelines in the coming months. This move aims to regulate gambling more effectively while capitalizing on the profitability of online gambling, following the impact of the Covid-19 pandemic on Laos’ land-based casinos.
Licensing and Operational Structure:
Consultant Danny Too, who is assisting the Laotian government, explained that initial master licenses would be issued to a select number of businesses. These license holders can then subcontract “sub-licenses” to a broader range of operators, adopting a similar model to Curaçao. The decision to implement this structure was influenced by the Covid-19 pandemic, which severely affected Laos’ foreigner-only land-based casinos. By regulating gambling and embracing online operations, Laos aims to achieve dual objectives of proper gambling oversight and increased profitability.
Focus on Southeast Asian Markets:
While the Chinese government has criticized POGOs for targeting Chinese customers, Laos intends to avoid involvement in the sensitive issue. Given Laos’ smaller size and population of 7.3 million, it is likely to yield to pressure from China if necessary. Consequently, Laos is prioritizing other markets such as Thailand. During the awarding process, China was not mentioned, and Laos aims to avoid any complications in this regard. Currently, the top contenders for master licenses are based in Thailand, indicating their potential dominance in the Laotian online gambling sector.
Advantages and Cost Efficiency:
Laos plans to adopt approximately 90% of the POGO model, offering operators lower costs and more convenient locations within Southeast Asia. By enticing operators with favorable cost structures, Laos aims to attract significant interest in establishing online gambling operations. Additionally, the Laotian government is working to expedite the process for working visas, allowing businesses to hire foreign staff. These measures will further facilitate the growth and development of the online gambling sector in Laos.
Laos’ decision to regulate online gambling and target markets in Southeast Asia reflects its strategy to capitalize on the success of online gambling operations in neighboring countries. By adopting a licensing model similar to POGOs, Laos aims to establish an effective regulatory framework while maximizing profitability.
While China remains a sensitive issue, Laos intends to focus on markets such as Thailand. Through lower costs, convenient locations, and streamlined visa processes, Laos seeks to attract operators and position itself as a key player in the Southeast Asian online gambling market.