Online lottery contract allows state to cancel project

BANGKOK, Jan 5 (TNA) – Thailand’s Prime Minister Abhisit Vejjajiva on Tuesday reasserted that his government is ready to scrap the online lottery project, saying that contract made with Loxley Gtech Technology (LGT), as contractor, allows the government to end the project, while the amount of compensation should be agreed by both sides.

The premier commented as LGT, a subsidiary of Loxley, assigned by the ousted government of prime minister Thaksin Shinawatra to install electronic lottery vending machines in Thailand, threatened to sue for Bt3 billion if the Abhisit government terminates the long-delayed project.

Mr Abhisit said that all actions must adhere to the terms of the contract, acknowledging that his government will offer compensation to LGT if the project is cancelled.  He said the amount will be set in accordance with the contract, acceptable to both parties, not imposed by either.

“I will not exploit or break the contract,” said Mr Abhisit. “When the contract was been signed, the private company accepted the condition that the government’s policy may be cancelled.”

The premier added that the online lottery project is not a public-private joint venture, saying that the contract has been written that LGT is contractor, while the Thai government is the principal.

“So it is the right of the principal [to decide] whether it wants to continue the project or not,” said Mr Abhisit.

The premier added that he has assigned Kiat Sittheeamorn, president of the Thailand Trade Representatives, to review the relevant laws and contract details to determine how to end the project.

Mr Abhisit reasserted the reason that the “no go” decision regarding the online lottery is that the government will not intensify the social problems which are already caused by the underground lottery.

He indicated that many major world cities depend on the gambling industry, which he allowed can make huge incomes for the cities, but it also leads to a number of social problems.

“So the options are whether we want money which comes with social problems,” he said, “or do we choose [between] either of them.”

The premier reasserted that he personally disagreed with the online lottery, reasoning that if he accepts the project, many questions will follow such as whether drugs problem and prostitution should be solved in the same pattern.

LGT president and chief executive officer Trichakr Tansuphasiri earlier said that the company will go ahead with the plan as ordered by the Government Lottery Office (GLO) on December 4, assigning the firm to prepare the lottery system within 90 days, by about March this year.

Under the terms of the deal with the government agency, Loxley Gtech is responsible for setting up the system and providing equipment, technology and services for the national online lottery in Thailand. Loxley would receive a 75 satang fee per lottery ticket while the GLO would own the electronic lottery, he said.

LGT did not receive the concession from the government and the GLO-LGT contract did not come under the Public-Private Joint Venture Act, he said, but the Council of State had approved carrying out the online lottery under the contract.

Mr Trichakr said LGT had invested Bt2 billion in the system and could consider a Bt3 billion compensation if the government cancels the plan.

Meanwhile, the Government Lottery Office’s executive board on Tuesday delays online lottery project, waiting for Kiat panel findings and research and prepares for legal action from the contracted firm. (TNA)