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98150
Mon, 01/04/2010 - 20:47
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Prime Minister admits ‘no go’ for online lottery vending project

BANGKOK, Jan 4 (TNA) - Prime Minister Abhisit Vejjajiva Monday admitted that the government was likely to compensate the private firm contracted to operate the long-delayed online lottery project in order to cancel it as his government did not want to encourage gambling and did not want to legalise the behaviour, which he described as a vice.

Mr Abhisit said he had closely followed the online lottery issue and when the Government Lottery Office (GLO) decided to go ahead with it, he had ordered setting up panel to find to way to scrap the project without violating the contract with the private firm.

He said the government did not want to legalise unlawful things which could lead to more vices.

Mr Abhisit said Sunday that a panel headed by Kiat Sittheeamorn, president of the Thailand Trade Representatives, would study the laws and contracts made with Loxley Gtech to determine how to end its electronic lottery project.

He said the project would have a negative impact on society, especially on youth.

"I believe that there are options open for the government to terminate the project with no damage to the government and no affect on the private firm," he said.

He said the 30-day time time frame given to the committee was sufficient to find the best solution.

Mr Abhisit stressed that the government did not want to take unfair advantage of the private firm, but that everything must be done according to the contract.

He said the study confirmed that the selling of two- and three-digit lottery would not solve the problem of the underground lottery but would instead increase the number of lottery buyers.

The online lottery was not a solution to reduce the underground lottery, he added.

If the contracting company felt that scraping of online lottery was unfair, it could tell the government in order to find a solution together, said the premier.

Loxley Gtech Technology (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 scraps the long-delayed online lottery project.

Trichakr Tansuphasiri, LGT president and chief executive officer, said he is awaiting a clear government oilicy on the online lottery project but the company will go ahead with the plan under the order of the Government Lottery Office (GLO) on December 4, 2009 assign the LGT 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 such a national online lottery in Thailand. Loxley would received 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 Office of the Council of State of Thailand had approved carrying out the online lottery under the contract.

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

He added that some 5,000 online vending machines are to be installed for the system. (TNA)

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