Date: 26.11.2024

by Adam Dworak

Thailand’s N3 Lottery Faces Challenges Amid Efforts to Combat Underground Gambling

Thailand’s N3 lottery, launched as a pilot initiative to address the country’s significant underground lottery market, is facing mixed results in its experimental phase. With low prize values and limited features, its ability to compete with illegal gambling remains under scrutiny.

Pilot Program Aims to Combat Illegal Gambling

Introduced within a sandbox system, the N3 lottery aims to reduce reliance on underground lotteries, which generate an estimated 100–300 billion baht annually ($2.89 billion–$8.67 billion).

Despite its noble goal of curbing illegal gambling rather than generating revenue, the lottery has struggled to attract buyers during its initial two rounds of sales.

The lack of features such as credit-based purchases, commonly available in underground alternatives, has contributed to its limited appeal.

Trial Extension to Address Key Challenges

The Thai government plans to extend the trial period for another two to three months to further evaluate the N3 lottery’s popularity and potential as a sustainable solution. This extension will allow for adjustments and provide more data on the lottery’s ability to address gaps in the market.

Minister Julapun, a key proponent of the initiative, emphasized the importance of striking a balance: “The N3 lottery’s primary goal is to curb illegal gambling rather than generate revenue.”

However, for the program to succeed, it must compete effectively with the entrenched underground market and attract consistent buyers.

Monitoring the Impact on Existing Lotteries

The N3 lottery’s performance is also being assessed for its potential impact on Thailand’s existing six-digit lottery (L6) in both paper and digital formats.

Minister Julapun has instructed the Government Lottery Office to monitor competition between the two systems closely, as it could necessitate a reassessment of the project’s viability.

Compounding the situation is the declining demand for digital L6 tickets. Nearly one million tickets went unsold during the 16 November draw, raising questions about the broader lottery market’s stability.

Julapun attributed the dip to seasonal factors such as spending during the Loy Krathong festival and financial strain caused by recent flooding, suggesting these are temporary challenges.