Company CEO Trichakr Tansuphasiri yesterday said the firm would demand at least 3 billion Baht in compensation if the government cancelled the contract for the project as it had already invested about 2 billion baht in the system for online machines.It would be difficult for foreign investors to accept if the government fails to honour the contract between the company and the Government Lottery Office (GLO), Mr Trichakr said.
The deal was signed in 2005 by the government led by then prime minister Thaksin Shinawatra and the firm, which is a joint venture between Loxley and US-based GTech Corp. GTech holds a 49% stake in the venture.
Loxley GTech Technology will charge the GLO a service fee of 75 satang for each lottery ticket, while the GLO will be the owner of the online lottery tickets.
The company has already set up the online lottery system with about 5,000 lottery vending machines.Ticket sales were to have begun in 2006 but the scheme was abandoned by the next government led by Gen Surayud Chulanont over legal problems involving revenue sharing and strong opposition to gambling and from lottery sellers.
Mr Trichakr said several retail online lottery agents had withdrawn from the project because they were uncertain about the government's policy.
The GLO board last month decided to go ahead with the project, saying all problems had been settled.
But Mr Abhisit yesterday made clear he did not favour the project because he was concerned about encouraging young people to gamble.
The prime minister said he had kept seeking information about the lottery from the GLO after its board decided to launch the project.
Mr Abhisit's reluctance to approve the lottery led to his decision to set up a working group to look into the government's obligations.
He said the working group, led by Thai Trade Representative Kiat Sitttheeamorn, would explore ways the government could compensate the contractor. The study is expected to be ready in a month.
Mr Abhisit was confident cancellation of the project would not cause any damage to the government.
The project was initiated by Thaksin Shinawatra to curb the illegal underground lottery industry.
But Mr Abhisit said yesterday he was not convinced the illegal lottery would be wiped out as a result of the project and, in fact, it could do more harm than good to the country.
GLO board chairman Sathit Limpongpan said yesterday the board would hold an urgent meeting this week after learning of the prime minister's opposition to the project.
The prime minister "could have additional information" that the board does not have which has led to his attempt to cancel the project, he said.
Sangsidh Piriyarangsan, the director of the doctorate programme at Chandarakasem Rajabhat University and an expert on the underground economy, condemned the prime minister for trying to stop the lottery project.
He insisted the scheme could help reduce the number of people playing the underground lottery.
Without the scheme, underground lottery bookmakers and their associates would continue to enjoy making up to 30 billion baht in profit from about 300 billion baht that flows through the illegal operation each year.
Mr Sangsidh said the right way to solve the underground lottery problem was to legalise lottery schemes.
Torphong Selanon, vice chairman of the Association of the Blind, applauded the prime minister's plan to scrap the online lottery.
He said an online system would destroy the livelihoods of up to 60,000 disabled lottery ticket sellers nationwide.
Source: BangkokPost
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