Abhisit Vejjajiva plans to convene a working group to find a way to “smoothly” cancel the online lottery.
The prime minister said he was deeply concerned about the social problems the lottery could cause.
“I do not want the online lottery but I must solve the problem of obligations under the contract,” Mr Abhisit said.
“I will try to find a way out. From my point of view, I see the cons of the online lottery. If it can be avoided, it should be.”
The working group will be headed by Thailand Trade Representative president Kiat Sittheeamorn, a member of Mr Abhisit’s Democrat Party.
The group will study the requirements under the contract with a private company and find a way within 30 days to negotiate a way to cancel it that will not involve any damages.
Mr Abhisit admitted the contract had obligations that could lead to a lawsuit being brought against the government unless it was revoked carefully.
The online lottery scheme was initiated by the Thaksin Shinawatra administration to tackle the problem of ticket overpricing and illegal underground betting.