Lottery revenue soars by over 40%
The Ministry of Finance has reported that in the first quarter of 2024, revenue from lottery sales reached 18,271 billion VND, which is a 42.5% increase compared to estimates. This is also the revenue category with the highest increase compared to the estimates. In the previous year, 2023, the total revenue from the lottery industry reached over 153,000 billion VND, representing an 11% increase compared to 2022. This is the highest revenue ever recorded, with 96% being contributed by traditional lottery sales.
Currently, there are 63 lottery companies operating in different localities across the country, along with the Vietnam Computerized Lottery One Member Limited Liability Company. Out of this, over 90% of traditional lottery revenue comes from 21 lottery companies in the Southern region.
In 2023, many lottery companies in the South reported high revenue and profits. For example, Binh Thuan Lottery Company achieved revenue of 5,776 billion VND with a post-tax profit of 584 billion VND. Can Tho Lottery One Member Limited Liability Company’s revenue exceeded 5,749 billion VND, marking an 11% increase compared to 2022. The net profit from Can Tho Lottery Company’s business operations in 2023 was over 732 billion VND, which is a 20% increase (equivalent to 131 billion VND compared to 2022).
Many lottery companies witnessed significant profits in 2023. Illustrative photo
Dong Nai General Lottery and Service Company also reported double-digit growth in 2023, reaching 5.815 billion VND. The net profit from lottery sales reached 859.3 billion VND.
Vinh Long Lottery One Member Limited Liability Company achieved revenue of 5.776 billion VND, representing a growth of over 10% compared to 2022. The company’s pre-tax profit was nearly 578 billion VND.
In many localities, lottery revenue is considered a major source of revenue, contributing to the budget. The Ministry of Finance revealed, localities use lottery revenue to fund development investments, prioritizing investments in education and training, vocational training, and healthcare.
“Lottery is inherently dependent on luck. If lottery ticket sales and lottery-related activities are promoted excessively, it can lead to the encouragement of people investing in risky ventures instead of focusing on productive economic activities. Therefore, lottery sales, despite being highly profitable, require strict control to avoid negative consequences if they grow too rapidly”. Mr. Ngo Tri Long
“This is an important source of revenue for localities, especially in the Southern provinces, for carrying out provincial development investment objectives. Additionally, lottery sales also create employment for lottery agents and vendors”, informed the Ministry of Finance.
To achieve the significant growth witnessed in 2023, many lottery companies offered commission to lottery vendors of around 15% of the revenue. For instance, Can Tho Lottery Company spent over 1,058 billion VND on lottery sales. Out of this, the commission paid to lottery vendors was over 947.9 billion VND, accounting for more than 16.4%.
Binh Thuan Lottery also paid commission to agents and authorized prize payments of more than 958.4 billion VND, equivalent to 16.5%. According to these calculations, in 2023, Binh Thuan Lottery agents received approximately 380 billion VND in commission.
Balancing growth and preventing overheating
Currently, traditional lottery tickets are primarily sold through agents. First and second-tier agents sell to street vendors. Therefore, lottery agents are considered the “extended arm” of lottery companies. Notably, in 2024, the Chairman of the People’s Committee of Vinh Long Province awarded Certificates of Merit to 69 lottery agents for their outstanding achievements in lottery sales. These agents were recognized for their contribution to the Vinh Long Lottery Company’s successful performance, exceeding targets for state budget contributions and for their role in the economic and social development of Vinh Long Province.
In light of the substantial growth, Southern regional lottery companies proposed increasing the number of lottery tickets issued in 2023. However, the Ministry of Finance stated that the issuance of lottery tickets should be handled cautiously, taking into account the maintenance of public order, safety, and social security, not just economic performance. The lottery business is a regulated industry, subject to strict control by competent state agencies, to ensure that it does not adversely affect public order and societal well-being.
“The proposal to increase the number of lottery tickets issued by lottery companies in the Southern region requires a comprehensive assessment of various factors and a consideration of both short-term and long-term benefits. Increasing the number of lottery tickets issued must ensure public order, safety, and social security, not just economic viability and market demand for tickets”, explained the Ministry of Finance.
Economic expert Ngo Tri Long opines that economic and investment challenges have led to an increase in people seeking spiritual comfort and relying on luck, which has contributed to the rapid growth of the lottery industry. Many localities are inclined to issue lottery tickets to generate substantial revenue. However, such practices should not be encouraged as they can lead to adverse consequences.
