Panamanian President José Raúl Mulino has announced that electronic lottery operations will be terminated, in order to improve the efficiency and credibility of the National Lottery of Charity (LNB) and to promote its transformation. The decision was made based on reports from the LNB that, according to Mulino, “are not encouraging at all.”
During his second press conference after taking office on July 1, the president said that he ordered Saquina Jaramillo, the new director of the LNB, to end the Lotto and Pega 3 games of Panama’s electronic lottery, which are usually held on Tuesdays and Saturdays. Scientific Games LLC. is the company behind the 10-year concession of the digital lotteries.
Mulino highlighted that from now on the LNB will focus on the traditional draws of Miércolito, Dominguito and the Gordito del Zodiaco.
“The rest is over, which only reduces the efficiency and profitability of our lottery, benefiting some who profit from electronic lotteries, which this year generated a weekly gross sales of USD 900,000,” he added.
He also warned that the LNB is an institution that lacks adequate systems, and that the authorities in the Government’s modernization department will be asked to work on this, “because managing that entity without systems is the closest thing to disaster and bankruptcy.”
Mulino explained that the LNB reported a 27% return in July, six percentage points less than June, but described it as a high figure. He also noted that there are 13,500 ticket sellers in the country, who earn commissions on 10% of their sales.
“The ticket sellers’ commission is 12.5%, a little more than that of the National Lottery of Charity, which amounts to USD 117,000, and the operator also earns 2% of gross sales,” said the president.
“This is not a good business opportunity for the State. It is for third parties, but not for the State. So this institution will undergo an efficient, transparent and honest transformation, with the aim of making it a credible and beneficial entity for the Panamanian people again,” said Mulino.
He also reported that a law is being drafted to modify the current Organic Law of the Lottery, which dates back to 1969. “I wish to establish its modification, among other things, in order to give greater recognition to those thousands of ticket sellers who make the profitability of the lottery possible and, of course, the consequent benefit it gives to the population,” he said.
It is worth pointing out that, days ago, a publication by the Panama America media revealed that the electronic lottery business was set up and promoted by the government of Laurentino Cortizo, and that both Publio De Gracia, former head of the General Directorate of Revenue (DGI), and Luis Oliva, former administrator of the National Authority for Government Innovation (AIG), forced the implementation of the Lotto and Pega 3 games.
For their part, the sellers of lottery tickets for the Panamanian LNB said they could take legal action against officials of the former administration for the economic losses that this has caused to the charitable institution.
