Gaming revenue increases, but the government receives less | Business
Despite a 9% increase in sales, government revenue from the gambling industry has declined, albeit slightly, according to the latest quarterly report from the Betting, Gaming and Lotteries Commission, BGLC.
For the July to September 2021 period, industry sales totaled $36.514 billion, an improvement of 9.2% over the corresponding quarter in 2020. However, levies and fees paid by the industry have decreased by 1% to $1.98 billion.
The largest contributor to government sales and revenue continues to be the lottery sector, which generated 92% of total sales in 2021 and 91% in the 2020 quarter.
But the lottery was also the biggest drag on government revenue in the 2021 quarter, falling 11%, BGLC reported. This is because game companies paid more in prizes for the period.
Gaming industry revenues are distributed in four ways: the Consolidated Fund receives just over 50%; the CHASE fund obtains 25 to 30%; the BGLC gets about 17% and the Jamaica Racing Commission about 2%.
For the quarter, the gaming industry paid out over $31.16 billion in prize money, representing just over 85% of the $36.51 billion in total sales. Comparatively, gaming companies only paid out 82% of the $33.44 billion bettors wagered during the same period in 2020.
The BGLC also reported that overall ticket sales declined in August 2021 “for all lottery games, primarily due to blackout days and curfew restrictions”, while in September, says There, all lottery games declined except for smaller ticket games, Cash Pot, Dollaz, Money Time, Hot Pick and Dream 6.
The lottery market includes Supreme Ventures Limited and new entrants Mahoe Gaming Enterprises Limited and Goodwill Gaming Enterprises Limited, the three of which are jostling each other in the field as evidenced by rising prices for small ticket games.