The Supreme Administrative Court yesterday ordered the Government Lottery Office (GLO) to pay more than 1.65 billion baht in damages to Loxley GTech Technology Co in a dispute over the online lottery saga.
The court upheld the Central Administrative Court's decision to order the GLO to pay compensation.
But the Supreme Administrative Court also decided to increase the amount of the compensation of 945 million baht awarded by the lower court to more than 1.65 billion baht plus 7.5% interest per year, beginning from April 7 of 2011, the day the company filed the lawsuit with the court, to April 10 of this year.
The interest will be 3% per year plus an incremental rate of 2% per year from April 11 of this year until the compensation is fully paid. The compensation must be paid within 60 days.
Loxley GTech, a joint venture between the Thai trading conglomerate Loxley Plc and American gaming system provider IGT Global Solutions, demanded 1.32 billion baht in compensation after the GLO cancelled the contract to provide the lottery game service system signed in 2005.
But the Central Administrative Court ordered the GLO to pay 945 million baht plus 7.5% interest per year to Loxley GTech, beginning from April 7, 2011. The two sides then appealed to the Supreme Administrative Court.
Loxley GTech installed an online lottery system and machines nationwide, as well as trained personnel to operate the system. After the system was tested to ensure smooth operations, the company handed the system over to the GLO on Oct 17, 2006.
However, the Council of State, the government's legal advisory body, informed the GLO that the sale of two and three-digit lottery tickets was not in compliance with the law.