1 week Ago
The Digital Economy and Society (DES) Ministry has assigned the Digital Economy Promotion Agency (depa) to draft the country's first Game Industry Act in collaboration with the Culture Ministry, creating a law that covers all dimensions of the digital game business and services. Digital games are now available on a variety of devices and platforms. Why is the bill necessary? State agencies have been concerned with online gaming as its content can sometimes include gambling activities.
This means it should be defined and supervised with clear regulatory conditions and a registration system, seeking a balance between monitoring and promoting the gaming ecosystem, noted the DES Ministry. The ministry said the games category is more expansive than physical activities at internet cafes, motion pictures, or online platforms on both iOS and Android operating platforms. The law should deal with the sophisticated development of the gaming sector, currently valued at 30-40 billion baht, while promoting Thailand to become a gaming hub in Southeast Asia, said the DES Ministry.
Earlier the Culture Ministry considered amending the Film Act by adding additional content to cover games. However, the DES and Culture ministries later agreed that games should be dealt with separately under a specific law. Nuttapon Nimmanphatcharin, president of depa, said gaming has become a creative sector that plays an important role in the global economy.
"We expect the value of the local game industry to reach 100 billion baht within the next 10 years," he said. Mr Nuttapon said game exports are valued at 800 million baht per year, with the sector tallying a trade deficit due to a higher import value. "This industry has a lot of opportunities.
Games are interconnected with many sectors, from education to entertainment and sports. In addition, games are a cultural activity in a region that has many similar elements," he said. A clear scheme in the upcoming law will help regulate and promote the gaming ecosystem, while providing a framework for a digital service tax in the future, said Mr Nuttapon.
What does the law cover? The bill covers five important facets: improving the gaming definition, establishing a related committee, registration, supervision and a promotion fund. He said the law not only attempts to improve economic growth, but also focuses on creating a balance between promoting the industry and protecting society, especially protecting young people and preventing mental health impacts. The goal is to create an environment conducive to the positive use of the gaming industry, said Mr Nuttapon.
Depa is coordinating with relevant agencies to prepare a process to support enforcement of the law, such as the registration of online game service providers, a game ratings system in line with international standards, and expediting meetings with agencies to ensure consistency with other laws being drafted, such as the regulation of online gambling being prepared by the Interior Ministry. The bill sets a framework for the development of the gaming industry in all dimensions, from human resource development to promoting Thai game entrepreneurs through various mechanisms, setting guidelines aimed at preventing negative social impacts, while attracting investment to Thailand from overseas entrepreneurs. Game entrepreneurs, manufacturers, developers, distributors and game platform providers or those offering related products or services are all expected to register under the new regime, he said.
Registration is expected to increase the efficiency and competitiveness of the domestic game industry to meet international standards, said Mr Nuttapon. The law should develop standards, criteria and methods for regulating and controlling the game industry, allowing for effective supervision and enforcement of the law, he said. The law will also support the development of the industry throughout the supply chain and the value of games through the promotion fund, said Mr Nuttapon.
The promotion fund is expected to receive 500 million baht a year from the National Broadcasting and Telecommunications Commission fund and another 500 million baht a year from the Revenue Department. He said the fund will be operated by the Game Promotion Institute, established under depa. Earlier Mr Nuttapon said this draft law would not overrule other laws, instead enhancing current laws and enabling new laws to function more effectively.
What is the status of the bill? The bill recently passed a public hearing. Representatives from the private sector and educational institutions noted manpower is essential in the gaming sector and proposed adding manpower development to the bill. They proposed representatives from the private sector, education, and gaming executives be added to a committee as the gaming industry is rapidly developing.
This participation would enable the committee to follow recent developments and learn about various issues quickly and accurately, according to businesses. DES Minister Prasert Jantararuangtong said opinions and suggestions put forward during the hearing will be combined with the results of four rounds of brainstorming meetings conducted with government agencies and the private sector. Mr Nuttapon said depa applied opinions from all sectors to expedite improvement of the draft.
On March 21, the subcommittee on accelerating urgent legislation from parliament called on depa to clarify the process. The agency explained the details and necessity of the law, saying it is not an emergency, but is needed to supervise and prevent problems arising from illegal activities and gambling. In addition, the private sector wants a legal framework to help develop new industries and increase the market value of game exports from Thailand.
Depa expects to present the bill to the DES Ministry to forward to the cabinet within 60 days for consideration and approval. The agency expects the law to become effective by year-end, or in 2026. What are the expectations for the bill? As the law requires all related parties to register, these parties will receive tax benefits such as tax deductions to support the development of the gaming industry and for companies that train digital workers.
Tax support is also expected for Thai gaming operators to promote employment and digital skills development. The law includes game ratings to prevent problems from playing certain games, particularly online gambling and violence in games, according to depa. The law also creates measures to encourage Thai entrepreneurs to compete internationally.
Promotion in the bill covers the entire supply chain, from content design, character creation and animation production to tying content into games and organising e-sports competitions to encourage foreign developers to invest in Thailand, with the goal of making Thailand a regional gaming hub..
