Unions object to lotteries proposals

The Lotto Receivers Union (LRU) and the Union Haddiema Maghqudin have written to Parliamentary Secretary Tonio Fenech expressing their disappointment at the changes being proposed by Maltco Lotteries for Super 5 and lotto.

In a joint statement, the two unions said they were convinced punters would be negatively affected by the proposed changes.

Contacted, LRU president Arthur Rossi said Maltco was proposing to raise the cost of a Super 5 ticket by 15c to 65c. The union had no objection as long as the winnings were increased accordingly. He said Maltco was offering to increase the prize fund the week after the Super 5 jackpot is won to Lm50,000 from Lm40,000, but the union considered this increase to be a "gimmick".

Mr Rossi said the main proposal for the weekly lotto was the reintroduction of a "quota", or the capping of the total sum of money that can be won. In this way, winnings would be reduced if the sum won exceeded the quota.

In 1997, then Finance Minister Leo Brincat had raised the quota to Lm500,000, effectively doing away with it as this sum was never reached, Mr Rossi said.

He added that Maltco wants the winnings to be cut when in any particular week the amount of winnings reaches 70 per cent of sales of lotto tickets.

Both unions said they fear the proposed measures would make punters lose their confidence in Super 5 and lotto, a factor that could lead to the further spread of illegal gambling.

A negative effect on organised lotteries would also mean fewer funds for voluntary organisations and musical societies that benefited from financial assistance through the National Lotteries Good Causes Fund, the two unions noted.

The LRU and the UHM appealed to the gaming authority not to allow the proposed measures to hinder the industry that was developing and generating money for the economy and providing jobs.

Maltco said when contacted that since it operates in a highly-regulated environment, it acts within the regulatory framework that recognises two parties, namely the Lotteries and Gaming Authority as the regulator and Maltco as the National Lottery licensee.

At this stage, therefore, the company feels it is not appropriate to comment on the subject, a spokesman said.

Mario Galea, chief executive officer at the Lotteries and Gaming Authority, said when asked to comment that the authority had taken into consideration the social impact, not necessarily the economic one, of the game of lotto and ensured that the game - which had for a long time formed part of the Maltese social fabric - would continue to exist.