The hidden side of
Thailand's lottery
Thitinan Pongsudhirak on cancelling the online lottery
By Jon Fernquest 
The
Bangkok Post featured an insightful and informative
op-ed piece
this week on the controversial decision to not go ahead
with plans
to have an online lottery. The article was written by Chulalongkorn professor Thitinan Pongsudhirak.
lottery - a form of
gambling in which people buy numbers, a number is selected and people
with matching numbers win money (See Wikipedia)
insightful - shows a good understanding of people and situations and helps other people understand them better
informative - has useful information
op-ed piece - an article that expresses an opinion, of the newspaper's owner, of a journalist who works at the newspaper or of an invited expert (See Wikipedia)
controversial - a subject that the public argues about and disagrees about
go ahead with plans - do what you planned to do
insightful - shows a good understanding of people and situations and helps other people understand them better
informative - has useful information
op-ed piece - an article that expresses an opinion, of the newspaper's owner, of a journalist who works at the newspaper or of an invited expert (See Wikipedia)
controversial - a subject that the public argues about and disagrees about
go ahead with plans - do what you planned to do
(On right a photo of a sample receipt from an online lottery vending machine which PM Abhisit now says will not run)
Opinion
THAILAND: GOVT-SPONSORED VICE
The ethics and political economy of lottery12/01/2010
Thitinan Pongsudhirak
In view of its two decades on the drawing board, several years in legislation and months in the pipeline, the online lottery for two- and three-digit numbers appears to make policy sense.
Its economic argument to sap both the official and unofficial lottery black markets, the shadowy dens of rent seekers and mafiosi, should be a to any no-brainerself-respecting economist.
vice - criminal
activities (especially morality crimes such as prostitution,
pornography and gambling)
sponsor - help and support (through money or here through policy)
govt-sponsored vice - when the government supports and helps criminal activity (through policy)
ethics, morals - beliefs about what is right and wrong
political economy - economics that emphasizes the role and influence of politics on economic life and events (See Wikipedia)
on the drawing board - being planned
in the pipeline - now doing task but not finished yet
make sense - is logical (one can understand why it will be successful and effective)
make policy sense - a policy that is logical
sap - take the strength out of, make weak
black markets - a market where illegal goods are sold, smuggled in from other countries illegally, for example (See Wikipedia)
a den of thieves - a secret place where thieves meet
rent seeking - when people use their power to make money illegally and secretly, instead of competing fairly with other businesses in the market place (See Wikipedia)
rent seeker - a person who uses their power to make money illegally
mafiosi - members of the mafia and organized crime
organized crime - groups of criminals working together on crimes, gangs (See Wikipedia)
shadowy dens of rent seekers and mafiosi - the secret places where criminals meet
no-brainer - very easy to understand (even without a brain)
self-respecting economist - an economist who wishes people to have a high opinion of him as an economist
sponsor - help and support (through money or here through policy)
govt-sponsored vice - when the government supports and helps criminal activity (through policy)
ethics, morals - beliefs about what is right and wrong
political economy - economics that emphasizes the role and influence of politics on economic life and events (See Wikipedia)
on the drawing board - being planned
in the pipeline - now doing task but not finished yet
make sense - is logical (one can understand why it will be successful and effective)
make policy sense - a policy that is logical
sap - take the strength out of, make weak
black markets - a market where illegal goods are sold, smuggled in from other countries illegally, for example (See Wikipedia)
a den of thieves - a secret place where thieves meet
rent seeking - when people use their power to make money illegally and secretly, instead of competing fairly with other businesses in the market place (See Wikipedia)
rent seeker - a person who uses their power to make money illegally
mafiosi - members of the mafia and organized crime
organized crime - groups of criminals working together on crimes, gangs (See Wikipedia)
shadowy dens of rent seekers and mafiosi - the secret places where criminals meet
no-brainer - very easy to understand (even without a brain)
self-respecting economist - an economist who wishes people to have a high opinion of him as an economist
Yet Prime Minister Abhisit Vejjajiva now wants to can the online lottery. Without concomitant measures to tackle the thriving black market operations, the prime minister risks being seen as a misguided moralist and a conniving part and parcel of the lottery underworld who betrays his highly touted Oxford economics training.
can - get rid of,
eliminate, stop (for example: the Prime Minister was asked to can the
official)
concomitant measures - actions taken at the same time as another action
tackle - solve a problem
thriving - doing well and earning a lot of money
misguided moralist - someone who wants to do what is right, but does not know how
conniving - allow or help a wrong thing to happen even though they know it is wrong
X part and parcel of Y - X is part of Y
underworld - the secret hidden world of criminals
betray - say or do something that goes against your beliefs or education
highly touted Y - many people talk about Y and try to convince or persuade others Y is a good thing
betrays his highly touted Oxford economics training.
concomitant measures - actions taken at the same time as another action
tackle - solve a problem
thriving - doing well and earning a lot of money
misguided moralist - someone who wants to do what is right, but does not know how
conniving - allow or help a wrong thing to happen even though they know it is wrong
X part and parcel of Y - X is part of Y
underworld - the secret hidden world of criminals
betray - say or do something that goes against your beliefs or education
highly touted Y - many people talk about Y and try to convince or persuade others Y is a good thing
betrays his highly touted Oxford economics training.
To be sure, the prime minister may have been late in announcing his opposition to the online lottery, but he has staked out this position many months ago in pocket books and public comments. While his decision to lower the axe in the face of thousands of lottery machines already set up and ready to roll should have been hinted earlier, it was not hasty.
His argument, in one of his 100 published dreams for Thailand, is ethical and moral. Lottery is an abominable vice that has an "intoxicating" effect on the masses of poor people who are primary customers. That the state should play "house" in the bi-monthly virtual lotto casino is equally repulsive and unacceptable.
staked out this position
- created a firm and strong position or opinion about an
issues
lower the axe - make a decision (that hurts some people)
abominable - very bad
"intoxicating - gives you a pleasant drunk and out-of-control feeling
play "house" - meaning: be the one do it or control it (this appears to be a piece of language that is the author's own style or invention)
bi-monthly - happens two times every month
lotto - a short way of saying "lottery" found in lottery names
virtual lotto casino - an internet system where people can gamble with lotto
repulsive - disgusting, makes you sick to see
lower the axe - make a decision (that hurts some people)
abominable - very bad
"intoxicating - gives you a pleasant drunk and out-of-control feeling
play "house" - meaning: be the one do it or control it (this appears to be a piece of language that is the author's own style or invention)
bi-monthly - happens two times every month
lotto - a short way of saying "lottery" found in lottery names
virtual lotto casino - an internet system where people can gamble with lotto
repulsive - disgusting, makes you sick to see
Mr Abhisit's ethical and moral argument, however, rests on shaky ground. It also fails to address the political economy of the current lotto arrangements that are beset by collusion and corruption.
On the surface, the current official lottery set-up features six-digit numbers on tickets with an 80-baht face value. These tickets exit the Government Lottery Office at around 75 baht for the disabled and disadvantaged, who are supposed to be the main selling beneficiaries, to earn the difference.
In reality, a collusive oligarchy of middle parties purchases and monopolises the lotto tickets. Same numbers are stapled for premium prices of up to 120 baht or more apiece to be sold in batches. Each of the stand-alone individual tickets sells up to 100 baht each at street level.
The huge margins are completely unaccounted for and feed the rent-seeking fat-cat middle parties who in turn provide certain returns to politicians and the powerful to maintain cosy ties. Such goes the age-old story of official lottery corruption.
argument rests on shaky ground
- argument is faulty and not really correct (facts or logic wrong)
Government Lottery Office (GLO) - the Thai government agency responsibile for the lottery
collusion (noun) - secret or illegal cooperation
collusive (adjective)
oligarchy - a small group of people who run and control some activity (an industry, organization or even whole country)
collusive oligarchy of middle parties - people in between (government and buyers) who control the market
stand-alone - each one taken separately
huge margins - very large profits
unaccounted for - not recorded or not explained where it comes from or how they got it
fat-cat - a rich and important person
rent-seeking fat-cat - a rich and important person who uses their power to make money illegally
maintain cosy ties - work closely together
Government Lottery Office (GLO) - the Thai government agency responsibile for the lottery
collusion (noun) - secret or illegal cooperation
collusive (adjective)
oligarchy - a small group of people who run and control some activity (an industry, organization or even whole country)
collusive oligarchy of middle parties - people in between (government and buyers) who control the market
stand-alone - each one taken separately
huge margins - very large profits
unaccounted for - not recorded or not explained where it comes from or how they got it
fat-cat - a rich and important person
rent-seeking fat-cat - a rich and important person who uses their power to make money illegally
maintain cosy ties - work closely together
The unofficial businesses, transactions and associated bribe payments are even more lucrative. The bi-monthly set-up is the same, which means the GLO still has exclusivity on churning out the numbers twice a month.
But in these schemes, an assortment of underground lottery bosses who accept only two- and three-digit luck quests get to play "house," not the GLO.
lucrative -
profitable
exclusivity - they are the only one who does it (others are not allowed)
churning out - producing large amounts of
exclusivity - they are the only one who does it (others are not allowed)
churning out - producing large amounts of
Punters always want to win big but they settle for two- and three-digit bets for higher chances of winning. One baht fetches roughly 60 for two digits. Innovative underground providers give discounts for larger sums and allow losing customers extra time to pay up subsequently.
This underground industry is completely opaque, estimated by academic studies to be worth in the ballpark of 300 billion baht or more, completely untaxed and unaccounted for.
For those who have followed the Thai lottery schemes and scams, all of this is common knowledge.
pay
up - pay the money you owe to some person
subsequently - after that
opaque - cannot see what is happening, not transparent
worth in the ballpark of 300 billion baht - has a value about or approximately 300 billion baht
scams - a way of cheating people and getting their money dishonestly
subsequently - after that
opaque - cannot see what is happening, not transparent
worth in the ballpark of 300 billion baht - has a value about or approximately 300 billion baht
scams - a way of cheating people and getting their money dishonestly
The online lottery would multiply vendors of two- and three-digit lottery and decimate the underground bosses. Income on lottery sales by vendors would be more transparent and taxable. The GLO would get to play "house."
The political economy rationale is loud and clear. The income transfer from underground lottery bosses to the GLO would be substantial.
The positive side-effects are also far-reaching. Obscure underground mafia who also engage in other vices and pay bribes to politicians, police and so on would be directly undermined.
decimate - destroy
transparent - public can see what is happening
income transfer - taking money or income from one group of people and giving it to another group
side-effects - other things that happen when action is taken to achieve some goal
obscure - hard to see or know about
engage in Y - do activity Y
undermined - made weak
transparent - public can see what is happening
income transfer - taking money or income from one group of people and giving it to another group
side-effects - other things that happen when action is taken to achieve some goal
obscure - hard to see or know about
engage in Y - do activity Y
undermined - made weak
Yet this economic argument can be superseded by ethical and moral concerns. Indeed, gambling is a sinful vice that should be avoided. PM Abhisit's logic against online lottery for its intoxicating effect and the immorality of the government's "house" role should lead him to eliminate the bi-monthly lottery altogether.
Prohibition is the logical conclusion of the PM's ethical argument.
He alluded to this in his published dream but he has done nothing about it so far. Even with official prohibition on lottery, the Oxford-educated PM surely must know that a black market will still find ways to operate.
It thus does not add up.
superseded by -
replaced by
ethical and moral concerns - the issue of whether an acticity is bad or good (and if it bad whether the government should prevent it)
sinful - goes against, violates, breaks the rules of a religion
government's "house" role - the government runs the gambling operation (a gambling operator is called "the house")
prohibition - when laws prohibit the sale and consumption of alcohol
alluded to - mentioned, talked about, referred to
ethical and moral concerns - the issue of whether an acticity is bad or good (and if it bad whether the government should prevent it)
sinful - goes against, violates, breaks the rules of a religion
government's "house" role - the government runs the gambling operation (a gambling operator is called "the house")
prohibition - when laws prohibit the sale and consumption of alcohol
alluded to - mentioned, talked about, referred to
If online lottery is to be cancelled at a high cost on sinful and amoral grounds, what is to be done with the officially known collusion and monopoly of ticket sales? And would not the underground bosses of unofficial sales be the ultimate beneficiaries?
While the economic argument is unaddressed and the ethical concerns are inconsistent, the PM also should beware the nature of lottery. The masses may not be as gullible and easily intoxicated as he might think. As in tobacco and alcohol and other sin products that make up the massive excise tax in this country, people should be given information to think for themselves.
The government should not take a paternalistic stand and decide for the masses what they see as their chances for a better life.
Mr Abhisit's lottery dream is out of touch with the upward dreams of the poor masses.
amoral
- neither moral nor immoral (simply not dealing with
morality at all)
grounds - reasons
collusion - when people work together to achieve illegal or dishonest goals
monopoly - a business with only one company or operator in control
the ultimate beneficiaries - the people who gain in the end (when the full process has finished)
the economic argument is unaddressed - does not deal with or do anything about the economic side of the issue (discussed in this article)
inconsistent - contradict each other (parts of it can not go together logically)
ethical concerns are inconsistent - the ethical aspects of it contradict or go against each other
the nature of Y - deep down what Y really is
gullible - believes things too easily (therefore easy to lie to and believes things that are not true)
excise tax - tax on goods sold (such as alcohol or cigarettes)
paternalistic - acting like a father (doing what you think is best for them and believing that they do not know what is best for themselves)
take a paternalistic stand - having a paternalistic opinion about some issue (belieiving that you should act like people's father)
out of touch with - does not really know what is happening (because has not experienced or had contact with for a long time)
grounds - reasons
collusion - when people work together to achieve illegal or dishonest goals
monopoly - a business with only one company or operator in control
the ultimate beneficiaries - the people who gain in the end (when the full process has finished)
the economic argument is unaddressed - does not deal with or do anything about the economic side of the issue (discussed in this article)
inconsistent - contradict each other (parts of it can not go together logically)
ethical concerns are inconsistent - the ethical aspects of it contradict or go against each other
the nature of Y - deep down what Y really is
gullible - believes things too easily (therefore easy to lie to and believes things that are not true)
excise tax - tax on goods sold (such as alcohol or cigarettes)
paternalistic - acting like a father (doing what you think is best for them and believing that they do not know what is best for themselves)
take a paternalistic stand - having a paternalistic opinion about some issue (belieiving that you should act like people's father)
out of touch with - does not really know what is happening (because has not experienced or had contact with for a long time)
The writer is Director of the Institute of Security and International Studies, Faculty of Political Science, Chulalongkorn University.
(Source: THAILAND: GOVT-SPONSORED VICE, The ethics and political economy of lottery, 12/01/2010, Thitinan Pongsudhirak, link)
