Illegal lotteries and a large outlaw economy in a developing country

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Abstract

This study aims to understand the illegal lottery businesses from economic, political, and social perspectives in Chiang Rai, Nakhon Ratchasima, Rayong, and Phuket provinces of Thailand, which have contributed to the outlaw economy. The study used qualitative methodologies to determine why illegal lotteries continue to exist and if members of the lower class, such as farmers, workers, and vendors in marketplaces with low incomes and education, were the primary contributors to their unlawful existence. The results showed that the cash flow of the illegal lottery was 0.91% of 2019 Thailand’s GDP and 0.93% of 2021 Thailand’s GDP (Center for Gambling Studies, 2019; Office of the National Economic and Social Development Council [NESDC], 2022), 5.10% of the government fiscal year in 2019, and 4.56% of the government fiscal year in 2021. The Budget Bureau has been the main source of revenue for community leaders such as politicians, government officials, and national or local authorities. In Thailand, large hidden organizations have administered and regulated illegal lotteries. Because of this, policy changes or flexibility are very important for the domestic market mechanism and the gambling industry in terms of the global setting.

Keywords: Illegal Lottery, Outlaw Economy, GDP, Thailand

Authors’ individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

Declaration of conflicting interests: The Author declares that there is no conflict of interest.

JEL Classification: E01, E12, E21, E27, E71

Received: 11.02.2022
Accepted: 20.05.2022
Published online: 23.05.2022

How to cite this paper: Sonsuphap, R. (2022). Illegal lotteries and a large outlaw economy in a developing country [Special issue]. Corporate Governance and Organizational Behavior Review, 6(2), 223–229. https://doi.org/10.22495/cgobrv6i2sip6