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Lottery retailers articulate concerns over bad business

The nation's charity lottery retailers voiced concern at a public hearing yesterday that the coming sports lottery would have a negative impact on their business.

Earlier this month, the government announced that a sports lottery would start as early as next April.

"Lottery retailers estimated that a sports lottery may take 15 percent of their market share," Democratic Progressive Party Legislator William Lai (賴清德) said. "We therefore have to consider if there is a big enough market for both the charity and sports lotteries."

Taipei Fubon Bank's lottery department vice-president Jlong Hsu (許志隆) said it would not be a problem. Taipei Fubon Bank has been selected as the issuing bank for sports lottery.

"The markets for the sports lottery and the charity lottery are different," Hsu said.

Studies on similar cases abroad found only 5 percent of overlapping business, he said.

However, Hsu did not convince retailers and lawmakers.

"A larger percentage of sports lottery sales revenue will be allocated to prizes -- how can you be sure that such a factor would not attract charity lottery customers?" Chinese Nationalist Party (KMT) Legislator Wang Yu-ting (王昱婷) asked.

Currently, only 60 percent of revenue from charity lottery sales is used for prizes while 75 percent of sports lottery sales revenue will be used for prizes.

"I would suggest combining the sales channels of both lotteries," Lottery Retailers' Union chairman Huang Hsien-tung (黃顯堂) said.

Representatives from Chinatrust Financial Holding Co, the firm that runs the charity lottery, agreed with the suggestion.

"We will negotiate with Taipei Fubon Bank on behalf of the 5,000 charity lottery retailers on marketing channel integration," Chinatrust chief information officer Chang Ruu-tian (張汝恬) said, adding that an integrated lottery sales system is in place in 57 countries.
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