The potential for Latin American lotteries to co-operate

The potential for Latin American lotteries to co-operate

Thursday, May 11, 2017
Interview with Tiburcio Perdomo, commercial director for the National Lottery of the Dominican Republic

Tiburcio Perdomo, commercial director for the National Lottery of the Dominican Republic, spoke to TotallyGaming.com ahead of his appearance at Juegos Miami to discuss regulation in the region.

Para leer esto en español, haga clic aquí.

Totally Gaming: How would you summarise the year 2016 for the National Lottery of the Dominican Republic?

Tiburcio Perdomo: The National Lottery of the Dominican Republic is a Dominican State institution which was created on October 24th 1882 by the priest Francisco Xavier Billini, with the objective of supporting the less fortunate through a series of institutions [LA1] that he directed.

From its creation until 1999, it was the only institution authorised to market and regulate the lottery game in the country. However, in that year a process of privatization of state institutions began, which the lottery did not escape.

Due to the fact that gambling remains one of the most profitable industries in the country, with sales of approximately 3.2 billion USD, and that the Dominican Republic is among the top three countries worldwide for lottery playing, the National Lottery has been given to the private sector, which has a 99% stake in the gaming market.

For these reasons, the lottery has not seen much advancement over the past eighteen years.

TG: Could you give us a summary of the current situation for Latin American lotteries? Do lotteries continue to grow throughout the region?

TP: Participating in CIBELAE over the past eight years as representatives of the Dominican National Lottery, in nearly all the events held across the region, has affirmed for us the great achievements being made by Latin American lotteries, as well as the technological advances that the gaming industry has undergone in recent years.

Online lotteries, social and mobile gaming are now a reality in the region, and effective responsible gambling, anti-money laundering policies, as well as the fight against illegal gaming, are all achievements to be highlighted.

TG: What would be the importance of a multijurisdictional game for Latin America? When was the concept formulated? How many people would you play and how much would you earn in game revenue?

TP: My participation in the gaming industry began in 2008. One of my main concerns was the development and marketing of games with attractive prizes for players and generating resources to dedicate them to good causes, following the tradition of the founder of the Dominican Lottery, Father Billini.

Thus, in December 2008 I moved to Spain to begin negotiations with the authorities of SELAE (Lottery of the State of Spain) that allowed us to develop and market different games in the country, with the "Gordo de la Primitiva" Lotus type attracting us most.

After obtaining the necessary guarantees from both States, 2 August 2013 saw the first agreement signed for the commercialisation of the Spanish lottery’s "Gordo de la Primitiva" between the countries called "El Gordo Iberoamericano ".

Discussions with the Spanish lottery authorities, led by its then-President Gonzalo Fernández and Commercial Director Juan Gallardo, revolved around the creation of a multi-jurisdictional game to be marketed from the Dominican Republic, where SELAE would put the technology and the initial float. Said game began on February 18, 2013, with a guaranteed minimum pot of five million euros and bets at 1.5 euros. For reasons beyond our control, a change of authorities in the Spanish lottery aborted this beautiful project after a year of initiation.

At the seminar THE PRODUCTS: Trends, Channels and Modern Marketing, celebrated in Punta Cana, Dominican Republic from 2 to 4 July 2012, CIBELAE discussed the feasibility of presenting a strategic plan for the region that would allow the updating of gaming systems to new technologies, social networks, etc., and in which the most advanced countries could cooperate with countries of less advanced lottery systems in order to help them become an instrument for the advancement and development of their respective people.

In another seminar also held in Dominican Republic in March 2014: "Online gambling and virtual sales channels pushing State Lotteries", one of the central issues was the creation of a multijurisdictional game for the region.

Due to our experience in this type of game and as a member of CIBELAE, in my capacity as the Vice President and Executive Directorate for Central America and the Caribbean, we were entrusted with creating a multijurisdictional game project for the Corporation at the meeting of the Board of Directors in Fortaleza, Brazil (June 2014).

In September 2014, we made the first presentation of it through video conference, in a Round Table held by GLI in Peru, while in October of the same year we presented it to the Board of Directors of CIBELAE in Cartagena de India, Colombia. From that moment, important operators like Novomatic, Intralot and Gtech have been interested in the project and made interesting proposals. In the last three years, I have had the opportunity to explain the scope and benefits of this type of game.

There is no doubt that a multijurisdictional game for the region is of transcendental importance because, amongst other things:

  1. The region has a population of more than 550 million people.
  2. It would be possible to unite America through lotteries.
  3. Technological advances for the improvement of the gaming industry in the region would be taken advantage of.
  4. Joint policies would be implemented to combat illegal gambling, common systems and regulations and the fight against money laundering.

All this would contribute to creating advanced lottery systems that would benefit bettors and achieve greater development for the peoples of the region.

I want to clarify that this project I am presenting in a personal capacity as a contribution to Clarion Events.

TG: What would be the prizes, the matrices and the cost of playing such a game?

TP: The game we propose is lotus type, with two matrices: 5/45 and 2/10. The selling price should not be less than 1.5 dollars, which would be the reference currency. The raffles would be weekly with boats between 5 to 10 million dollars guaranteed minimum.

Weekly sales will depend on which of the lotteries participating, but taking into account that Euromillions is marketed in 9 countries and has distributed a prize of 190 million euros, prizes could exceed 200 million dollars given our target population is several times greater than that reached in Europe with Euromillons.

TG: Since its inception in 2004, Euromillions has distributed massive funds throughout Europe. Are European and Latino lottery professionals collaborating on the creation of a multijurisdictional game?

TP: The experience of Euromillions, like any other game, could be used for the implementation of a multijurisdictional game. In the development of this project. I have held meetings with professionals from Spain, Austria, Portugal and the region.

TG: A regional lottery has the potential to offer big prizes and significant income for good causes, but it would be a complex operation. What would be the main challenges when developing such a game and what are the game professionals doing to overcome them?

TP: The development and implementation of a project of this magnitude that could involve more than 20 countries and a population so large would have to face great challenges. The first thing that should be done is to study the legislation that each country has on the gaming industry; Try to unify the legislation, the regulatory, advertising, monetary framework and define the administrative-financial direction of the project.

TG: What is the best regulatory model for the Latin American gaming sector and how can we achieve it?

TP: The best regulatory model for the sector in the region will be determined by joint legislation that can be implemented.

TG: Finally, in addition to the creation of a multijurisdictional game, what are the main objectives of the National Lottery of the Dominican Republic for 2017?

TP: At the moment, the prospects of the National Lottery Dominican are not very promising; everything is subject to what the private sector decides.

Juegos Miami takes place from May 31 to June 2 at The Biltmore Hotel in Miami. For more information on participating in the invitation-only event, visit www.juegosmiami.com

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