Two Spanish trade associations are calling for urgent regulation of online lotteries to protect the operations of independent retail businesses.
Digital Defence (DEDIT) and Lottery Vendors in the Fight (LELL) argue that, without regulation of online lotteries, the Spanish State Lottery and Betting Agency (SELAE) will effectively hold a ‘digital monopoly’ over the business of lotteries.
The organisations claim that this could be particularly damaging for independent retailers in small towns and rural areas. The duo made this claim during the presentation of the Report of the Roundtable for the Profitability and Digitalization of Online Lotteries.
Jon Urkiola, President of DEDIT, said: “We are neighborhood businesses, businesses of small towns and rural Spain. In small towns, the lottery is a service and a vital part of the social fabric.”
The abovementioned report was presented by two other Spanish business organisations – the Spanish Confederation of Business Organisations (CEOE), with the support of the Association of Self-Employed Workers (ATA).
The trade bodies argue that regulation of online lottery sales is needed to guarantee the viability of a commercial network of over 1,600 points of sale and 18,000 direct jobs, many of which are located in small towns and rural areas.
However, the organisations do not appear to be opposed to the digitisation of lotteries, seeing online lottery as already significant to the sector – both structurally and financially.
Similar to the US, where more and more state lotteries are moving towards launching an online proposition, Spain’s lottery retailers appear to have seen the writing on the wall -online lottery is here to stay.
According to data analysed by the DEDIT and LELL fund, digital sales represented around 30% of the revenue of most Spanish lottery associations, generating around €1.5bn (£1.3bn) annually.
Regardless, the associations want to see regulatory change around online lotteries to ensure that the wider lottery sector remains sustainable for all Spanish stakeholders.