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Rapa Quindlen
PUNTCHOLING – At least 67.9% of Bhutan’s economically active population aged between 23 and 37 years are actively participating in the gaming platform of Bhutan Lottery Limited (BLL).
According to the player data of BLL Puen Tsolin, 69,112 players in this age group (39,261 males and 29,851 females) are currently engaged in online gambling, while the total number of players is 101,707 (58,826 males and 42,881 females).
As expected, 9% of the players are between the ages of 18 and 22, with a total of 9,217 players. The remaining 20,423 players (20.1%) are between the ages of 38 and 52, while 2,955 players are 53 years old and older.
Thimphu has the highest number of lottery players, followed by Puentsholing, Klephu and Paro. However, reaching every clan remains a difficult task due to limited interest in lottery purchases and meagre returns.
Saran Gurung, deputy general manager of BLL, said the business model will soon change. “We will remove the geographical restriction that agents can only sell within their jurisdiction, so that any agent can sell anywhere.”
Officials said sales increase in the last week of each month as the payment period approaches, but fall during weekends due to outdoor entertainment. Peak online sales last until 1 a.m. as the daily e-lottery deposit limit of 1,000 Ngultrum is exhausted by 12 a.m.
In July, the weekly revenue of online games was about 13.97 million Ngultrum in the first week, about 12.53 million Ngultrum in the second week, about 11.60 million Ngultrum in the third week, and about 17.41 million Ngultrum in the last week.
“Usually, we see a drop in lottery business during the monsoon season as people usually prefer to buy lottery tickets during festive seasons,” said Saran Gurung, adding that the lottery business depends on the speed of the internet and the quality of the payment system.
Sales are currently down about 20 to 25 percent compared to the same period last year. According to officials, factors such as low income, inflation, global recession, weak economy, inconsistent payment systems and internet challenges are responsible for the sluggish turnover.
Online gaming revenues fell to 55.52 million Nu in July from 56.55 million Nu in June, paper lottery revenues fell to 3.71 million Nu from 4.41 million Nu, while scratch card revenues increased to 4.21 million Nu from 3.08 million Nu. This suggests an average monthly revenue of about 63.73 million Nu.
BLL offers seven online products, as well as paper lottery tickets and scratch cards. The online gambling platform was launched in May 2021 during the pandemic and has been a huge success, generating 83% of its annual revenue, with the remaining 17% coming from traditional paper lotteries.
In 2023, the BLL paid out prizes of N800 million, leaving it N200 million short of N1 billion. In July, a total of N42.9 million was awarded, including N38.21 million in online games, N2.39 million in paper lottery prizes, and N2.3 million in scratch cards. Winners of prizes over N5,000 must pay a 20% tax.
As of August 13, the game had generated revenue of N31.09 million, with online games generating the highest revenue of N27.11 million, followed by scratch cards with N2.25 million and paper lottery tickets with N1.72 million.
Planning and Finance
Performance
To boost sales, BLL is working with Tbank and the National Bank of Bhutan to integrate their mobile banking systems, which will make it easier for Bhutanese players living abroad to participate.
Given that the Royal Monetary Authority’s payment gateway requires one-time password (OTP) verification to complete transactions, a process that can be challenging for overseas players, BLL has integrated mBoB as an alternative, which does not require OTP.
The BLL also increased the annual grand prize from three to four and offered a prize of Ngultrum 10 million to the first winner of the National Day, up from the previous top prize of Ngultrum 3 million.
“The lower level awards will also become more attractive. The award structure needs to be balanced from top to bottom and we will work out the formula and finalise it after discussion with the programme committee,” said Saran Gurung.
“From the current trend, if we continue to produce the same products, sales will slowly decline,” he said. “Some products are doing well, while others may not be doing well.”
Asked about the full shift to digital, he said paper tickets would still be necessary for agents who sell tickets in person to customers, even though digital tickets are more user-friendly. “Some of our customers rely on traditional lottery options, including scratch cards and paper tickets,” he added.
BLL has repositioned itself as an innovative and responsible gambling platform that has generated the highest revenue in its eight years of operation. Annual sales revenue increased by 14.3%, from Ngultrum 948.7 million in 2022 to Ngultrum 1,084 billion in 2023.
Profit before tax (PBT) increased by 16% to Nu 216.4 million from Nu 186.6 million in 2022. Net profit after tax was Nu 151.4 million, exceeding the 2023 target of Nu 148.3 million.
In 2023, BLL remitted Nu28.7 million to the government as bonus tax, which means an average remittance of Nu2.39 million per month. It also paid Nu64.9 million in corporate income tax.
BLL is the only online gambling platform approved by the government, and authorized lotteries are not considered gambling under the Bhutanese Criminal Code. BLL was originally a state-owned enterprise under the Ministry of Finance, and its shares were transferred in October 2023 to fund the De-Suung skills training program.
BLL has 10 Dzongkha lottery agents, a total of about 70 secondary sellers operating on commission basis, and 7 open sellers. The age limit for players is below 18 years old, and agents are given clear instructions.
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