President Andrés Manuel López Obrador of Mexico has confirmed that two of Mexico’s lotteries will merge, creating one of the largest lotteries in the region. La Lotería Nacional para la Asistencia Pública will merge with Pronósticos para la Asistencia Pública.
The merger is designed to reverse Lotenal’s deficit of 540 million pesos (US$28.4 million) which was generated starting in 2008, when a special excise tax was imposed on the lottery. The government taxes certain products that are deemed harmful to the population or environment such as soft drinks, cigarettes, alcohol and gas. It is already imposed on casinos at a 30 percent rate.
In 2015, Mexico’s Chief Audit Office confirmed that Lotenal was in crisis, according to CDC Gaming Reports. Not only had the lottery stopped supporting charitable organizations, which was part of its mandate, it was dependent on government money to operate and even pay out prizes. Auditors advised that the lottery be dissolved. The government opted to merge Lotenal and Pronósticos.
Sales for Pronósticos are still robust. It’s the main retailer for electronic National Lottery tickets, with sales of $600 million per year.
