A contractual error is the main reason there has been a shortfall in the sports lotteries revenue, but the lotteries still have the potential to earn more money, an analyst said yesterday.
Taiwan Sports Lottery Corp, run by Taipei Fubon Bank, asked the government on Feb. 8 to allow it to halve the contracted amount of revenue it must give the treasury because sales were lower than forecasted. It attributed the slow sales to a delay in launching the lotteries, a change made to regulations governing its issuance and the global financial crisis.
“Given the current regulations, the sports lotteries are doomed to be non-profitable for operators,” said Griffey Chang, a sports lotteries analyst who breaks down game odds daily for betters. “It’s not that there’s no market for sports betting in Taiwan. On the contrary, there has been a huge underground betting market for years.”
One crucial factor was the government’s request that the Taiwan Sports Lottery submit the annual revenue by a fixed-rate portion of “expected sales” rather than “actual sales.”
The contract specifies that Taipei Fubon Bank must pay NT$20.83 billion (US$652 million) over six years, an average of NT$3.47 billion a year.
The bank had forecast sales would reach NT$33.65 billion from 2008 to last year, but the actual sales were NT$19.1 billion — 56.8 percent of expected sales.
The large amount of forecast revenue had forced the bank to add it as an operating cost and bookmakers to lower the game odds, making the lotteries unappealing for consumers, who ended up betting with underground operators, Chang said.
The other problem affecting sales was that betters cannot bet on single games because of fears this could lead to game-fixing. This means local professional baseball games are bundled with US Major League (MLB) games, which means betters have to correctly predict the outcomes of several local and MLB games to win.
“The design discourages betters who don’t follow foreign sports or do not read English,” Chang said.
The creation of the sports lotteries, however, has turned more people into sports fans, he said. Over time, the lotteries will have a positive impact on local sports by bringing in more fans as well as providing the sports federation with revenue, he said.
Taiwan Sports Lottery has a six-year contract to run the lotteries, from 2008 to 2013.
FUKUOKA SITUATION: Japanese media reported that the pathogen is expected to be identified by the summer, while the CDC downplayed the idea that it was hMPV A “mysterious cold-like illness” reported in Japan’s Fukuoka Prefecture does not seem to be a new disease, but Japanese authorities have been asked about the situation, the Centers for Disease Control (CDC) said yesterday. The Fukuoka Prefectural Medical Association on Wednesday told a news conference that a “mystery cold” that has become a hot topic on social media is “highly likely to be caused by some kind of viral infection,” Japan’s KBC News reported. “Many people are experiencing symptoms starting with a sore throat, followed by a runny nose, phlegm and a severe cough,” KBC News reported, citing association officials. Health authorities are
Nvidia Corp CEO Jensen Huang (黃仁勳) arrived in Taiwan yesterday ahead of upcoming AI and technology events, saying he plans to meet with clients and Taiwan Semiconductor Manufacturing Co Chairman C.C. Wei (魏哲家) during his visit. After landing at Taipei Songshan Airport, Huang posed for photos with fans and handed out Yakult drinks to reporters and supporters waiting at the scene, saying he has “a lot to do” during the trip. Asked about reports that Nvidia’s planned headquarters site in Taipei’s Beitou Shilin Technology Park could break ground on May 27, Huang said that if the company holds an event, he would
The Ministry of Finance this afternoon announced the winning numbers for the March-April uniform invoice lottery. The winning number for the NT$10 million (US$318,060) special prize is 19531471, and the winning number for the NT$2 million grand prize is 85941329. Three numbers were drawn for the NT$200,000 first prize: 07225810, 20231230 and 83518781. Those with receipts matching the last seven digits of any of the first-prize numbers will win the NT$40,000 second prize, while those matching the last six digits will win the NT$10,000 third prize. Those whose receipts match the last five digits of the first-prize numbers can claim the NT$4,000 fourth prize,
Former president Ma Ying-jeou (馬英九) yesterday expressed “shock and regret” over a statement issued by his wife without his consent, and rejected her assertion that his eldest sister, Ma Yi-nan (馬以南), would manage his medical care or act as his spokesperson amid an ongoing embezzlement probe into his foundation. Ma Ying-jeou in a statement said he was shocked by a statement by his wife, Chou Mei-ching (周美青), regarding his affairs. Ma Yi-nan “must not” be in charge of his healthcare and other personal affairs, nor can she be allowed to represent the Ma family, the former president said. He said he was also
RSS