The head of the provincial regulator, Jorge Payeras, highlighted the considerable growth of online gaming in the province. Meanwhile, the lottery fell by 40 percent.
Argentina.- The head of the Financial Assistance Directorate for Social Action (DAFAS), Jorge Payeras, analyzed the results of the first quarter of 2024 in relation to gambling, particularly the Pampean Lottery and online gaming, which has been gaining ground among the preferences of the people of La Pampa.
Payeras offered a detailed view on the notable decrease in profits in the Lottery, explaining both the structural and circumstantial causes of this trend, while highlighting the significant increase in online gaming, which grew by 100 percent.
One of the points that drew attention from the DAFAS revenue figures was the fact that the Pampean Lottery distributed only AR$ 8m (USD 8,300) in profits during the first months of the year, a figure that is 10 times less than in other periods. Payeras explained that evaluating the results of the Lottery over such a short period is not the ideal method for analysis: “To make an analysis, it is good to take a longer period,” he noted.
This is because the Lottery is a game with narrow margins, with a gross quarterly income of between AR$ 4,000m (USD 4.1m) and AR$ 5,000m (USD 5.1m), but with 62 percent of that income allocated to prize payments. Thus, the net profit margin is more reduced than others.
Payeras also highlighted that variability in prize payments can significantly impact the results from one quarter to another: “Chance is on the side of the bettors at some times and on our side at others. A 1 percent more or less in prizes can mean a difference of between AR$ 40m (USD 40,000) and AR$ 50m (USD 50,000).” This can lead to a distortion in the perception of profits.
Payeras also emphasized that the Argentine economic crisis has a direct impact on revenue collection. In this regard, he dismissed the myth that in times of economic crisis, people turn to gambling more frequently. “It is not true that people gamble more when there is a crisis. If they don't have money, they simply don't gamble,” stressed Payeras, who added that income from bets in the Lottery was reduced by between 35 and 40 percent compared to the previous year.
See also: Argentina: deputies from La Pampa denounce that the official websites of the province advertise online betting sites
In the face of this decline in traditional games, the growth of online gaming presents itself as a reason for success for the province. According to Payeras, this segment “grew above inflation“, with an increase of 100 percent compared to the previous quarter. This, he explained, is due to the expansion of legal online gaming, which is gaining ground against illegal gaming. “Just as it happened with the clandestine Lottery at the time, legal online gaming will continue to gain space,” he predicted.
