Lotto winnings capped at 70% when sales are exceeded

Maltco has explained its capping policy after punters reported a substantial cut in their winnings on Saturday.

The gaming company said the last Lotto draw resulted in very high winnings amounting to 203% of its sales.

It said that in terms of the rules, the company is obliged to increase winnings to 30% of sales when total winnings for the Prima, Ambo and Terno categories are below that level; and to reduce winnings to 70% of sales when the total winnings for the Prima, Ambo and Terno categories are above this level.

The company is also obliged to pay a guaranteed government tax of 20% on the sales of Lotto besides commissions to Lotto Receivers which amount to 7% of sales and 2% on the amount of prizes cashed, irrespective of the amount won.

"The company has for the past years been subsidizing the amount paid out as winnings whenever these were higher than 70% of the sales in an effort to sustain the game and to maintain its appeal among the playing public. This is no longer sustainable and capping will be effected at 70% for the foreseeable future," it said.