It has always been believed that having a lottery administration is synonymous with having a business with high profitability and insurance, but “all that glitters is gold.” According to the National Group of Provincial Associations of Lottery Administrators (ANAPAL), more than 4,100 establishments operate in Spain under a model that has not updated the price of tickets since 2002, while accumulated inflation in that period exceeds 60% and the cost of living has skyrocketed.
In this sense, content creator Eric Ponce has interviewed several lotteries in Spain, who tell us what the “crude” reality of having a lottery administration is like. They describe their work as “a pittance” and assure that “they haven’t raised our commissions in 20 years”, not to mention that they can no longer collect prizes over 2,000 euros, which is another large commission they lose.
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The business, managed directly under the supervision of the Ministry of Finance through State Lotteries and Betting, is based on commissions that have not changed in 20 years, despite the general rise in the cost of living. “Of each tenth of the Christmas Lottery, the current commission is 5% gross. That is, of the 20 euros that the client pays, the lottery keeps only one euro before taxes and contributions,” explains Rosa María, owner of a lottery administration.
“Today is not a good business, it is very slave”
For the lotteries interviewed, they all have the same opinion and assure that it is a business that has collapsed. “Prices are not going up, commissions are not going up, and the standard of living is. It’s been 20 years since they updated our margins,” they denounce. Furthermore, lotteries take high risks with the money they manage.
Every week they must deposit everything sold into the State coffers and then receive their share in commissions. “We work for the State. They are the bosses. We put in the effort, but they keep almost everything,” summarizes one of the interviewees.
Although there are many draws managed by the Lottery Administration, the truth is that only the Extraordinary Draw of the Christmas Lottery and the Children’s Lottery are the only ones that keep the business afloat during the rest of the year. “If the campaign goes badly, you can end up in losses and risk everything,” they lament. For this reason, many are forced to carry out aggressive campaigns, look for clients outside and maintain a stable portfolio of subscribers.
The business model has become unsustainable for many small business owners. Fixed expenses such as premises rent, security or employee payrolls are added to the low margins. “When there is no Christmas raffle, day-to-day life is not enough to pay payroll, rent or anything. Christmas has to cover the entire year,” they explain.
During the pandemic, the blow was especially hard, since with no activity there was no income, many had to resort to ICO loans to pay salaries or even “to eat.” One of the lotteries remembers: “In the end it was paying for the toilet paper. We are self-employed, but we depend on the State.”
“The State is drowning us little by little”
Those interviewed agree in pointing out the lack of support from the Government. “Loterías is a company within the Ministry of Finance. The presidents are politicians on duty who do not know how this works from below,” they denounce.
They assure that, while public officials “raise their salaries every few minutes,” salespeople continue to earn the same amount for two decades. “They are drowning us little by little so that we die of inaction,” laments one.
They also do not receive compensation when they distribute prizes. “Before we could pay up to 5,000 or 6,000 euros at the counter and they gave us a commission. Now, with the limit of 2,000, everything else goes through the bank. And we no longer see a cent of that.”
The impact of digitalization has also changed the rules of the game. Many young customers buy their tickets online through platforms such as TuLotero or directly on the State Lotteries and Betting website, which reduces in-person clientele.
“We are animals on the verge of extinction,” says one of the sellers. Although some administrations have adapted with applications and digital sales, competition with the state system itself leaves them at a clear disadvantage.
Even so, lotteries highlight the human value of their job, such as direct dealings with clients, the stories behind each number and the satisfaction of spreading joy. “When you give a prize and see how it changes a person’s life, everything compensates a little. But you don’t make a living from that,” they acknowledge.
The video ends by showing that being a lottery is not synonymous with wealth and quite the opposite. “You can live, have a decent salary, but you won’t become a millionaire by selling numbers,” says one of them. Another sums it up more starkly: “I wouldn’t open an administration again. It’s a lot of work, a lot of risk and little reward.”
Despite everything, many continue to lead by vocation and tradition. “If I went back and were young, I would do it again. But not now. Let the new generation come,” Rosa María concludes.