Luck of the draw

The Government Lottery Office (GLO) has launched a pilot version of the N3 three-digit lotto. This number game will legalise the underground lottery, generating massive revenue for the state coffers.
The underground lottery market in Thailand is estimated to be worth between 100 billion and 300 billion baht annually, and the GLO aims to capture a portion of this through the N3 lottery.
Regardless of its potential, the initial phase of N3 sales, which began on Oct 17, reveals some limitations. The major hurdle is the limited access to N3 lottery tickets. Currently, buyers must travel to one of a total of 647 vendors selling the N3 tickets across the country, which is woefully inadequate for a nation with over 7,000 sub-districts and more than 75,000 villages.
Without fixing this problem, gamblers will choose the underground channel, which is far more convenient. The underground network has formed informal yet ubiquitous networks where gamblers can place their bets everywhere.
In today’s digital age, easy access is a determining factor. In this category, the underground lottery syndicate has established a system and illegal outlets in many countries. Illegal bookies now use online apps such as Line as their betting channel. This underground betting also allows gamblers to defer payment and even offer higher prize money compared to state lotteries.
While the underground business expands its network and technologies to the community level, the GLO relies on physical vendors and outlets to sell N3 tickets apart from six-digit lottery tickets, or L6. While this strategy is designed to protect legal outlets and vendors, the strategy is misguided and can backfire.
The same vendors who sell the six-digit lottery tickets, or L6, will not be affected by the new N3. Both lottos are different. The L6 tickets, priced at 80 baht, offer jackpot prizes of up to 6 million baht, while N3 tickets, priced at 20 baht each, offer variable payouts based on the number of winners and sales in each draw. This variance ensures the two lotteries attract different customer bases, allowing for both products to coexist without cannibalising each other.
Instead of consigning the N3 to physical outlets, the GLO must make it easier for buyers to bet. Indeed, the GLO already sells L6 tickets through the government’s Paotang application, and there is no reason why the N3 tickets should not be available through the same digital channels.
The pilot phase has resulted in a rise of demand. Gamblers are gradually trying the N3 lotto because they want to avoid “locked” numbers in underground betting — illegal bookies often prevent gamblers betting on some popular numbers. Still, GLO needs to revise its strategy by prioritising on-line sales. Without a seamless, user-friendly online purchasing system, the N3 lottery will not be able to compete with the black market.
As the N3 lottery heads toward its full launch in April next year, the GLO must ensure it provides the public with the convenience and accessibility they need.
Only then can this new product truly fulfil its potential as a legal, state-controlled alternative to the underground lottery and contribute meaningfully to the economy.