E-sports in the mainstream; Exciting opportunities for the gaming industry

E-sports in the mainstream Exciting opportunities for the gaming industry

Thailand Board of Investment (BOI)

Attracting the interest of millions of people worldwide, e-sports has evolved from a niche sector of the video game industry into a global phenomenon in its own right. In Thailand, gaming is one of the fastest growing industries with a market value of US$961 million in 2022. The games market encompasses the creation, development, distribution, and monetisation of video games across a variety of platforms such as consoles, PCs, mobile devices, and cloud gaming services. It also includes related industries such as game streaming and gaming hardware.

RISING TRENDS IN THAILAND’S GAMING AND E-SPORTS INDUSTRY

The tremendous growth of the gaming industry in recent years has been made possible by the digital innovations and technology developments which have significantly enhanced the gaming experiences of players while also accelerating the game creation processes. Increased internet penetration and the accessibility of gaming devices and smartphones across Thailand have also opened up the industry to a greater number of players. Thailand’s e-sports also received a major boost in 2017 when it was recognised as an official sport by the Sports Authority of Thailand, resulting in a positive shift in attitudes towards gaming.

According to the Digital Economy Promotion Agency (DEPA), Thailand’s gaming industry is projected to reach US$1084 million in 2025 with 5% CAGR between 2020-2023. It is also expected that by 2027, the number of gamers in Thailand will reach 18.7 million, with over 10.7 million people actively following e-sports competitions.

THE GOVERNMENT’S SUPPORTING POLICY

The current government has made it clear that the gaming and e-sports industry will be fully promoted in line with Thailand’s goal to become a “Digital Economy Hub” under the Thailand Vision 2030. In addition, the gaming industry, as one of 11 promoted industries under the Soft Power policy, will receive additional support through entrepreneur development programs and funding. The government also has plans to build the Thailand e-sports Stadium in order to develop the infrastructure needed to support Thailand’s gaming industry. To address the shortage of specialists and skilled human resources in this sector, various government agencies are implementing their own gaming related plans with the aim of strengthening competitiveness and human capital. For example, the Digital Economy Promotion Agency (DEPA) established the Digital Economy Promotion Master Plan, aiming to drive digital industry, where the gaming industry is one of the priority sub-sectors for development.

Under the five-year investment plans from the Thailand Board of Investment (BOI), the gaming industry, as a part of the digital content sector, is one of the areas targeted for attracting investors. In this respect, the BOI is providing investment incentives and support measures for gaming and related industries.

To qualify for the BOI incentives, investors must meet specific criteria: (1) The minimum investment capital of each project must not be less than 1,500,000 baht per year, calculated on the basis of the expenditure on salaries for Thai information technology personnel employed after the application for investment promotion. (2) Qualifying projects must include a development process for software, digital platforms or digital content in Thailand. However, the investment promotion of this activity does not include the retail and wholesale of all types of products. The BOI also grants up to 8 years of CIT exemption with a set at 100 percent of the actual expenditure in the year of application including;

• Expenditure on salaries for Thai information technology personnel employed after the application in comparison with salaries for Thai information technology personnel employed before the submission date of the application for investment promotion

• Expenditure on information technology development related training courses to develop Thai personnel’s skills.

• Expenditure on operations to acquire the standard quality system certificate ISO 29110 or CMMI from Level 2 or other equivalent international standards.

• Furthermore, the Thailand Board of Investment has provided promotional benefits for entrepreneurs who invest in data center and cloud industries. Investment promotion measures can help improve digital infrastructure which is crucial to the development of the gaming industry. These include tax-based incentives such as an exemption of 8-year corporate income tax with no cap and import duties on machinery together with non-tax incentives such as a permit to own land and to bring skilled workers and experts into the country.

Contact details:

The Office of the Board of Investment +66 2 553 8111 head@boi.go.th www.boi.go.th