Don't go lotto!
In the Netherlands, lotteries are primarily seen as a means of fund raising,
rather than as a consumer product.
Many organisations in the sporting-community
as well as organisations in the fields of environmental issues, development aid and more depend to a sometimes large extend on this
gambling-income. These circumstances have led to an overall emancipation
of Dutch lotteries in recent years.
Whereas at times in history gambling was merely considered a part of the industry of sins, like
prostitution, alcohol and drugs, the general attitude has changed.
Dutch lotteries have become important players within the charity market and their revenues
have increased significantly in the years past.
Another effect of the hand over of funds is that -obviously- the participant of
the lotto (or most of the other major Dutch lotteries) is not given a fair deal in
terms of chance and profit.
Based on our calculations (see Bankvoordeel or: 'house advantage') we made the comparison:
Bet one Euro and pick a number between 1 and 6. If the dice comes up with your number, you win a prize of 1.08 to 1.98 Euro.
Indeed these figures do not seem very competitive in an international context.
Meanwhile, with the aid of existing legislation and the Dutch supreme court, the national lotto has managed to rule out foreign providers
such as the British company Ladbrokes (see Dutch residents will be restricted, an email message to a Dutch customer from Ladbrokes). The reason for this would be 'protection of the consumer', 'prevention of gambling addiction'.
Given the above, we see grounds to doubt the sincerity of this argumentation.
Furthermore, in case of lotto, we find it difficult to see who would truly benefit from the current situation, other than
any of the many illegal lotto's available in clubs, at work, in bars and at tobacconist shops.
Since many of the potential customers realize that playing lotto is not much of a bargain, the lotto
is now missing out on a certain potential in that area.
Recommendation
The gambling market is to be seen as a normal market, in which anyone who conforms to
strict requirements of reliability and capability, is to be given a license to start a
lottery or a casino *).
Per provider and per type of game, it should be clear, measurable and communicated openly
which part of the stakes is returned to the players.
This will prevent financial injuries at the participants' end and it will help establishing a realistic view on gambling matters, which may guarantee
a far better protection for the consumer than closing the borders to international providers.
* taken from an oration of Nick Huls, professor in law and sociology, at the Erasmus-university
of Rotterdam, may 2004