Sports Toto's Special Draw Will Be Less Than Expected
PETALING JAYA (Dec 6) The government's decision to cut special draws according to number forecast operators (NFO) to eight per year from 22 is likely impact earnings of Sports Toto Bhd less than expected. Hong Leong Investment Bank Research stated that it was not too worried, as special draws typically have lower sales. They also tend to cannibalise the sales of normal draws.
Lotteries in India
Lottery revenue is a major element of the budgets of several states. It is also a very popular form of entertainment for India's expanding, mobile-savvy, and tech-enabled population. But, this group is faced with a number of structural barriers that prevent it from expanding further. The fine-tuning of taxation issues and pushing for widespread digitization could be a significant step towards solving these issues.
The state-wide legal stance regarding lotteries can range from allowing lottery games to banning them completely. While some states have more discretionary policies however, the majority are stifling in regards to ticket prices and technology and jackpot size as well as public image. These restrictions affect the success of both private and government-run lotteries. Their popularity is growing despite the fact that tickets are affordable and readily accessible which gives them an advantage over illegal gambling operations or offshore operators.
The lottery industry is expected to follow the digital revolution, which has transformed other industries of the economy. Alongside facilitating new forms of play, digitization will also make the process of purchasing tickets faster and more practical for Indian customers. This will impact the offline lottery, a parallel aspect, where a large number of buyers are still used to purchasing tickets in person at the local sales point.
In the past, the lack of a digital infrastructure in India and high cost of internet access hindered the growth of the lottery business in India. Today, 750 million Indians have cheap internet access and this increases their buying power and convenience. The result will be an alteration in the structure of markets with both online and offline segments interacting.
Lottery players will find it easier to purchase tickets online and play from anywhere in the country. The Consumer Protection Act also provides the legal framework to settle complaints about deceptive advertisements and other business practices. This ensures that lottery players aren't abused by untrustworthy operators.
While the majority are run by the central government, a few of states have private companies licensed to run their draws. Private lotteries can be more flexible in their ticket prices, jackpot size and other aspects. They may also be more attractive to foreign investors. They can also avoid the restrictions of state-level legislation including the ban on cross-State sales.
One notable case involves the Essel Group's Playwin licensed to run the Sikkim state lottery. The company was plagued by financial issues after the introduction of GST which caused a drop in ticket sales. The company is now facing insolvency procedures. Private lotteries are still very popular in India despite the risk, especially among the younger generations. They can be played from smartphones, computers as well as TVs and the payouts are typically higher than regular lotteries. However, many players are skeptical regarding here the security and safety of these platforms. They are also worried about the risk of their personal information being disclosed. The government is working to address these concerns via new regulations and responsible gaming. The public can assist by reporting any suspicious activity to the authorities.