Bangkok Post
November 23, 2014
Writer: Patsara Jikkham
It may be too early to judge the work of the National Council for Peace and Order, but at least one policy has obviously failed — lottery price control. In July, the NCPO launched a campaign to regulate the government's lottery sales and stop tickets being sold for more than the face value of 80 baht a pair.
At the time, NCPO head Gen Prayut Chan-o-cha threatened large distributors that their lottery ticket sale contracts would not be renewed if they sold tickets at inflated prices. Just a few weeks after the announcement, Gen Prayut conceded the NCPO could not cap the price of all tickets at 80 baht, because of existing contracts between the Government Lottery Office and distributors.
As a result, lottery tickets would be sold in two price categories — 80 baht for new sellers and a higher price for those under existing contracts. Distributors were asked to avoid selling tickets for more than 92 baht.
But six months after the NCPO took control, most lottery tickets are sold at 100-110 baht, or more for popular numbers — just like before the coup.
Sungsidh Piriyarangsan, dean of Rangsit University's College of Social Innovation, says the NCPO's campaign on pricing has failed to get to the heart of the problem. He says lottery ticket prices cannot be reduced without changes to distribution structures.
One key issue is that organizations and foundations granted lottery quotas from the GLO lack the capability to sell the tickets by themselves. Those organizations are forced to sell lottery tickets to second-level traders, who then resell the tickets to retail traders with high mark-up prices.
The GLO's lottery quotas allocated to small traders are too low, he says, at only three to four packs each on average, with 100 pairs of tickets per pack. Small traders will earn only 560 baht profit per pack if all the tickets are sold.
Most small traders choose [to] resell their lottery tickets to other vendors. As a result, the majority of lottery tickets fall into the hands of second-level traders, which allows them to control market prices.
Mr Sungsidh suggests revamping lottery quotas and revenue allocation by prioritizing low-income and disabled vendors and setting funds to repurchase unsold tickets from small traders. The scholar also supports the idea of selling lottery tickets via automatic vending machines.
Chuthamanee Songsaeng, 38, a retail trader, said she wanted to buy lottery tickets for resale but was unable to purchase any for 80 baht a pair. She is forced to pay 90 baht, so must resell them at 100-110 baht.
A trader who receives 20 packs for his lottery quota said he cannot sell the tickets at 80 baht because he has to factor in the financial risk of the tickets he fails to sell.
NCPO picks a loser on lotto pricing | Bangkok Post: news