Consumer benefits from competitive lottery market in Ja
JAMAICA OPERATES a free-market economy with competition in every sector and is among many countries that allow competition in the lottery segment of the gambling industry.
In jurisdictions where there is a single lottery operator, this monopoly is typically held by a state-owned entity. Not since the 1970s has the lottery in Jamaica been operated by the Government. In Jamaica, the lottery operators
are all private companies.
Since Jamaica first issued a lottery licence to a private entity in 1991, there has not been any policy restricting the number of lottery licences. In fact, there have been periods where multiple lottery licences have been issued, and in effect, with multiple licensees promoting their respective lottery products at the same time.
CONSUMER WINS
The Jamaican consumer has benefited from a competitive market by having more choices, access to innovative products and services, and competitive prices. The gambling industry should be no exception, and the Betting, Gaming and Lotteries Commission (BGLC) intends that unless otherwise instructed by law or government policy, its decisions should not compromise or disadvantage consumers’ right to choose with whom they do business.
The gambling industry now generates over J$50 billion in revenue for the lottery promoter, J$30 billion in prizes for consumers, and J$8 billion in tax revenue for the Government.
Lottery sales and tax revenue have been on a consistent growth trajectory, even when there have been multiple operators in this market. The trends in the historical data strongly suggest that this will continue.
Currently, revenue sources from gambling do pose a significant risk to the Government as 90 per cent of this revenue comes from a single source, Supreme Ventures.
Today, there are three entities that have received a lottery licence. Only one is approved to promote lotteries.
In 2011, a lottery licence was granted to Goodwill Gaming Enterprises. In 2019, BGLC received an application for a lottery licence from Mahoe Gaming Enterprises Limited. Having successfully cleared the due diligence in order to receive a lottery licence, that application was approved for a licence by the Board of Commissioners on July 24, 2020.
CONDITIONS
Both Goodwill and Mahoe must now satisfy a number of conditions before the BGLC grants approval to begin commercial operations. These conditions include:
• Financial surety being established – by placing a cash reserve with a BOJ-licensed financial institution and establishing a dedicated trust account in which proceeds of sales are to be deposited and from which prizes and statutory liabilities are paid.
• The proposed technical service provider is subject to a multijurisdictional due-diligence investigation of integrity and financial background to ensure the entity is fit and proper. Technical review of IT infrastructure, game types, standards, and procedures. Due-diligence investigation of proposed lottery sales agents and retail premises.
Until there is a government policy placing a moratorium on lottery licences, under the Betting, Gaming and Lotteries Act, when an application comes to the commission and the criteria under Section 7 of the act are satisfied, the BGLC is obligated to issue the licence.
Vitus Evans is the executive director of the BGLC. He is an attorney-at-law, a trustee of the International Association of Gaming Regulators, St Lucia’s honorary consul to Jamaica, and a past president of the then Jamaica Exporters’ Association. Send feedback to info@bglc.gov.jm.
The gambling industry now generates over J$50 billion in revenue for the lottery promoter, J$30 billion in prizes for consumers, and J$8 billion in tax revenue for the Government.