San Juan lottery agencies are having difficulty keeping up with the growing demand for lottery services. Much of this increased activity has been fueled by large jackpots in recent months, creating renewed interest in the lottery.
However, even with the upswing in activity, these agencies have not been able to increase profitability or grow revenues, primarily due to higher operational costs.
Ernesto Pérez, representative of the Chamber of Lottery Agencies (CALA), stated:
The revenues we are receiving now are over 50% more than the revenues received during the same period last year. The financial reality is still complex. Even though we have higher revenue, margins are getting smaller.
Industry participants have also expressed concern over rising costs related to doing business, such as utilities, rent, and other normal operational expenses, which are growing at much greater rates than the growth of revenues. This poses an additional challenge for much of the industry, as there is currently a decline in the number of lottery agencies. In fact, in San Juan there were 440 lottery agencies four years ago; however, there are now 390 lottery agencies in San Juan.
Another challenge to the lottery industry is the proliferation of online gaming platforms. While it is illegal for individuals to operate an online gaming platform, the rise of this form of gaming has become a real threat to the lottery business.
Ernesto Pérez added:
It is not allowed in the province, but apps are appearing, and people are turning to them, especially younger users. We want to be included in any application that is legal.
The developments above have resulted in significant changes within the overall lottery industry in San Juan. The growth of demand within the industry has resulted from jackpots and promotional efforts; however, new costs and technology are combining to change the business model of the lottery industry.
