The government could sell narcotics to counter overpriced illegal narcotics. How does this sound. All profit goes to the government, and not drug lords. Wants to do the same for sex trade too? Setting up government whore house to counter overpriced illegal sex services.

^^ i think the government mentality is usually principle based, so they should be the only game in town (cause the police should be busting underground casinos/drug dealers), so they will not participate by free market rules.

if drugs were legalized i am sure they would be priced at or above the current street market level.

As for "at what point it's no longer profitable" it's the same for any gambling operation, it's at whatever point where there is no longer a 'house edge,' and that will vary according to each underground 'house' because everyone has a different "price" (same for soccer/football betting as well) for end users and middlemen (although yes, 60-1 and 500-1 is the norm... although there are typically stipulations for 'popular numbers' -paying out only half for example- and of course middlemen commissions will vary and affect the house edge as well).

What I mean is, I would not be surprised if these underground lotteries could still turn a profit offering 90-1 on 2 numbers and 900-1 on three numbers.

I would not be surprised if these underground lotteries could still turn a profit offering 90-1 on 2 numbers and 900-1 on three numbers.

Yes they could turn a profit mathematically, but they couldn't operate in practical terms. The 500-1 payout keeps the house edge at around 50-51%. A 900-1 payout would mean a house edge of around 9-10%. Still a pretty good advantage for the house, considering that in many casinos, the table games only have a house edge of 5-8%, however you'd need such a huge customer base, and much larger cash reserves to keep your risk spread out/and to survive customer wins that you probably wouldn't be able to keep your operations "underground" or in business for long. This wouldn't be an issue of course for the gov't.

http://www.entrepreneur.com/tradejournals/.../198473960.html

But gambling also has its dark side. Families have been rent asunder by hardcore gamblers. In 2005, a man plagued by gambling debts jumped to his death after killing his family. In his suicide note to his pastor, he wrote about a painful miss after betting his last chance on 4-D.

When the government announced bonus cash handouts of S$200 to S$800 to Singaporeans in 2006, some Singaporeans indicated that they would spend the money on 4-D. This mentality caused some members of Parliament to question the effectiveness of these handouts in helping needy Singaporeans.

In the UK, there are more gambling shop (called book keepers) than you friendly corner shops (grocery).

For the benefit to those who have not been in the UK, the book keepers shop density is about the same as 7-Eleven in Thailand.

What is wrong with that. I don't see that the British are gamble crazy like the Thais.

Hmmmmm!! Let's wait a see we have been here before, close but no cigar

Gambling is the choice of the people, not the government.

If the Thai people thinks that it is OK to gamble, then change the law and legalize it.

If the majority objects, than keep it underground to keep the turn over low.

Thank you.