Vietnam lottery firms hike prizes amid tough competition
In this article (4)
Effective January 1, the firms increased their top prizes to VND2 billion (nearly $86,100), up 33.3 percent from VND1.5 billion ($64,600).
The hike was based on a decision made by the Southern Lottery Council in October of 2016. Prior to that, traditional lottery prizes in Vietnam topped out at VND1.5 billion ($64,600). Companies who sold the numbered tickets have complained that the mega jackpots have eaten up their businesses.
A manager at a traditional lottery in Ho Chi Minh City told VnExpress in early October that the number of tickets sold in recent months had declined by about 10-30 percent due to competition from Vietlott.
On Christmas day, Vietlott, the operator of the American-style lottery, announced that two winners had split a $7 million jackpot–the largest to date. The pair represented the seventh and eighth winners of the lottery, which began two months prior.
Vietnam’s annual average income was around $2,100 in 2015, according to the World Bank.
Vietnam generally does not allow its citizens to gamble, but lottery tickets are popular across the country.
Questions & Answers
Q.What specifically caused traditional lottery firms to raise their top prizes?
What specifically caused traditional lottery firms to raise their top prizes?
Traditional lottery companies increased their top prizes to compete with a new American-style jackpot. They stated that mega jackpots offered by the new competitor had negatively impacted their businesses.
Q.How significantly have traditional lottery ticket sales been affected by the new competition?
How significantly have traditional lottery ticket sales been affected by the new competition?
A manager from a traditional lottery in Ho Chi Minh City reported that ticket sales had declined by approximately 10-30 percent in recent months. This decline is attributed to competition from Vietlott.
Q.When was the decision made to increase the top prizes for traditional lotteries?
When was the decision made to increase the top prizes for traditional lotteries?
The Southern Lottery Council made the decision to hike the top prizes in October of 2016. The increased prizes then became effective from January 1.
Reader pulse
Will prize hikes stop customer churn?
18,793 votes so far