Sports Toto's Special Draw Will Be Less Than Expected
PETALING JAYA (Dec 6) The government's decision to reduce special draws based on number forecast operators (NFO) to eight per year instead of 22 is likely impact earnings of Sports Toto Bhd, which is less than what was anticipated. Hong Leong Investment Bank Research said it was not too concerned, as special draws typically have lower sales. They can also often reduce the sales of regular draws.
Lotteries in India
The lottery sector contributes a significant amount to the budgets of State governments. It is also a popular type of entertainment among India's rapidly growing, mobile-savvy, and tech-enabled population. However, this segment struggles with a number of structural obstacles that hinder it from growing even more. The fine-tuning of taxation issues and pushing for mass digitization could be a significant step towards settling these challenges.
The legal position of the state on lotteries can range from allowing them to banning completely. Some states have a more relaxed position, however the majority are stricter in terms of ticket prices and technology and jackpot size, as well as public image. These restrictions affect the success of both government-run and private lotteries. Their popularity is growing despite the fact that tickets are inexpensive and widely accessible which gives them an advantage over illegal gambling operations or offshore operators.
As the digital boom transforms other areas of the economy, it's expected that the lottery industry will also be transformed. Digitization will not just provide new ways to play however, it will also allow Indian consumers to purchase tickets. This will affect the offline lottery, where the majority of players are still accustomed to purchasing tickets at local sales points.
In the past, India's lottery industry was hampered by the expensive cost of internet access and absence of a digital infrastructure. Today, 750 millions Indians have access to cheap internet, which increases their purchasing power and convenience. The result is likely to see a shift in the market's read more structure with offline and online segments coexisting side-by-side.
Lottery players will find it easier to buy tickets online and play from anywhere in the country. The Consumer Protection Act also provides an legal framework for settling complaints regarding deceptive advertising and other business practices. This ensures that players won't be exploited by fraudulent operators.
While the majority are managed by the central government, a handful of states have private companies licensed to manage their draws. Private lotteries are more flexible in their ticket prices, jackpot size and other parameters. They can also be more appealing to foreign investors. They can also avoid the limitations of legislation at the state level including the ban on cross-State sales.
One notable case involves the Essel Group's Playwin, licensed to operate the Sikkim state lottery. The company was plagued by financial difficulties due to the introduction of GST which caused an increase in ticket sales. The company is now facing bankruptcy legal proceedings. Private lotteries are still very popular in India despite the risk particularly among younger generation. They can be played on mobile devices, computer browsers as well as TVs and the payouts are typically higher than regular lotteries. However, many players are concerned about the safety and security of these platforms. They are concerned about the possibility of exposing personal data. The government is working to address these concerns through new regulations and responsible gaming. Reporting any suspicious activity can assist the public.