» » » » » » Economics of Gambling in Czech Republic – Lotteries

Economics of Gambling in Czech Republic – Lotteries

Flag_of_the_Czech_Republic

More than two thirds of the adult population of the Czech Republic (69%) participated in gaming and betting in 2004. The participants included all ages; however, the majority (60%) were between 30 and 59 years old. The share of players 60 years and older has increased since 2003 and the share of players younger than 30 is currently decreasing. The proportion of players with a higher education who participate in odds betting is gradually increasing over time. Scratch cards, however, attract mostly people with only a secondary education.

The players of slot machines are aging. Currently, 51% of players of slot machines are younger than 35 years, which is a decrease from 66% seven years ago. At the same time, 23% of players are older than 46 at present, when seven years ago it was only 12%. Summary of the Czech Republic Gambling Market 2004 (in € million)

  • Sales: (Turnover) Payout <> Revenues (GGR) <> Taxes, Administ. + Local Fees, <> Good Causes
  • Lottery: 188.7 <> 92.2 <> 96.5 <> 2.7 <> 34.3
  • Betting: 333.1 <> 286.8 <> 46.3 <> 1.8 <> 5.6
  • Bingo: 6.2 <> 4.4 <> 1.9 <> 0.2 <> 0.1
  • Casino: 344.2 <> 276.4 <> 67.8 <> 7.4 <> 5.4
  • Gaming Machines: 1497.1 <> 1122.8 <> 374.3 <> 51.5 <> 16.3
  • Audiotex and technical devices (IVT): 282.4 <> 228.8 <> 53.7 <> 5.9 <> 4.6
  • TOTAL (in € million): 2651.7 <> 2011.4 <> 640.3 <> 69.6 <> 66.3

Source: Submission to the Enquiry from SAZKA

GAMING SECTOR ANALYSIS

Lotteries

Sazka is the lottery company that dominates the Czech lottery sector. In the number lotteries market, it has 98% market share. In the instant lotteries market, Sazka has 90% market share where Ceskomoravska loterijni controls the other 10%. Ministry of Finance of the Czech Republic has issued fourteen permissions for Central Lottery Systems (CLS) with (Interactive Videolottery Terminals (IVT):

  • SAZKA, a.s. (Cyberview)
  • Synot Lotto, a.s. (hardware from Play&Win České Budějovice, software BossMedia),
  • Comax (system from a UK company),
  • Fair Play Trend, a.s. ( own system).

SAZKA Turnover (lottery, betting and other services) 2002-2004:

  • Turnover: 2002 <> 2003 <> 2004
  • Turnover (CZK billion): 7.48 <> 8.45 <> 8.5
  • Turnover (€m): 233 <> 266 <> 268

Source: Submission to the Enquiry from SAZKA

SAZKA’s revenues come from lotteries (85.5%), odds and sports betting (9.8%), instant lotteries (5.6%) and non-lottery activities.

SAZKA Lottery Turnover 2002-2004 (in € million):

  • Lotteries: 2002 <> 2003 <> 2004
  • Number Lotteries: 199.21 <> 227.43 <> 229.14
  • Instant Lotteries: 13.04 <> 14.89 <> 15.01
  • Total: 212.26 <> 242.32 <> 244.15

Source: Submission to the Enquiry from SAZKA

SAZKA GGR 2002-2006 (in CZK):

  • GGR: 2000 <> 2001 <> 2002 <> 2003 <> 2004
  • number lotteries: 3,134,912,852 <> 2,834,041,408 <> 3,245,926,209 <> 3,188,811,008 <> 2,836,833,681
  • VLT: 0 <> 0 <> 0 <> 0 <> 3,577,935
  • instants: 111,893,880 <> 47,401,870 <> 1,404,500 <> 245,042,080 <> 156,159,365
  • Total Lottery: 3,246,806,732 <> 2,881,443,278 <> 3,247,330,709 <> 3,433,853,088 <> 2,996,570,981
  • sports betting: 32,579,920 <> 64,373,831 <> 100,339,926 <> 101,919,878 <> 66,820,655
  • Total: 3,279,386,652 <> 2,945,817,109 <> 3,347,670,635 <> 3,535,772,966 <> 3,063,391,636
  • GGR: 2005 <> 2006
  • number lotteries: 3,141,704,826 <> 3,345,000,000
  • VLT: 16,479,330 <> 205,650,000
  • instants: 120,392,618 <> 196,425,000
  • Total Lottery: 3,278,576,774 <> 3,747,075,000
  • sports betting: 31,457,978 <> 36,370,000
  • Total: 3,310,034,752 <> 3,783,445,000

Note: Figures for 2005 are estimated as of 30 November. Figures for 2006 are forcasted.

Source: Submission to the Enquiry from SAZKA

SAZKA GGR 2002-2006 (in €):

  • GGR: 2000 <> 2001 <> 2002 <> 2003 <> 2004
  • number lotteries: 88,034,621 <> 83,182,900 <> 105,329,078 <> 100,151,099 <> 88,923,380
  • VLT: 0 <> 0 <> 0 <> 0 <> 112,154
  • instants: 3,142,204 <> 1,391,308 <> 45,575 <> 7,696,045 <> 4,894,971
  • Total Lottery: 91,176,825 <> 84,574,208 <> 105,374,654 <> 107,847,145 <> 93,930,505
  • sports betting: 914,909 <> 1,889,458 <> 3,255,993 <> 3,201,001 <> 2,094,560
  • Total: 92,091,734 <> 86,463,666 <> 108,630,647 <> 111,048,146 <> 96,025,065
  • GGR: 2005 <> 2006
  • number lotteries: 118,757,928 <> 115,344,828
  • VLT: 716,839 <> 7,091,379
  • instants: 4,042,870 <> 6,773,276
  • Total Lottery: 123,517,637 <> 129,209,483
  • sports betting: 1,112,336 <> 1,254,138
  • Total: 124,629,972 <> 130,463,621

Note: Figures for 2005 are estimated as of 30 November. Figures for 2006 are forecasted.

Source: Submission to the Enquiry from SAZKA

SAZKA Employment and Distribution Network 2000-2006:

  • Emloyees: 2000 <> 2001 <> 2002 <> 2003 <> 2004
  • direct: 398 <> 405 <> 432 <> 435 <> 435
  • indirect (not POS agents): n/a <> n/a <> n/a <> n/a <> 27
  • Number of outlets: 5353 <> 5941 <> 7057 <> 7028 <> 6973
  • Emloyees: 2005 <> 2006 <> 2007
  • direct: 454 <> 460 <> 467
  • indirect (not POS agents): n/a <> n/a <> n/a
  • Number of outlets: 7062 <> n/a <> n/a

Source: Submission to the Enquiry from SAZKA

SAZKA has no obligations to pay any good causes contribution; however it continues to do so on an annual basis. In 2004 the amount SAZKA contributed CZK 1.1billion to the public good, which exceeded by more then CZK 500 million the amount suggested by the Lottery Act.

SAZKA Good Causes Contributions 1995-2004 (in mCZK):

  • Year: 1995 <> 1996 <> 1997 <> 1998 <> 1999 <> 2000 <> 2001 <> 2002 <> 2003 <> 2004
  • Contribution: 632 <> 680.9 <> 715.8 <> 838.1 <> 860 <> 901 <> 960 <> 1000 <> 1051.9 <> 1107.5

Source: Submission to the Enquiry from SAZKA

Leave a Reply

Your email address will not be published. Required fields are marked *