We had the opportunity to talk to Luz Stella Correa García, who is the Executive Director of Fedelco, an entity that groups the lotteries of the country and that have not been unaware of the boom that is beginning to live in these moments. In this short interview she tells us about the transformation that the sector is going through due to the last quarantine and at the same time she shares with us the immediate projects.
MV: For some years now, regional lotteries have been going through a crisis, which had its greatest impact with the prohibition of seniors to go out during the quarantine period. What support did Coljuegos give them?
Luz Stella Correa (LSC): Lotteries were growing significantly until 2019, the big problem that lotteries have is the regulatory insensitivity that leads them to a check of financial sustainability. But the lottery sales with the efforts of the last years have increased, in 2018 they were 620,000 million pesos (USD $163260.63).
In April 2020, we had the suspension of draws with zero income for that month and in May we reactivated the sector again we achieved a 70% recovery with more than 400,000 million pesos (USD $105329.44) in sales.
Lotteries have looked for different alternatives, such as the management with the distribution of lottery players over 60 years old who were very brave because despite the quarantine they managed to sell at home with levels of 76% with respect to 2019.
This year in the month of March we were reaching close to 100% recovery but with the situation of the country with the strikes we again had a drop, again we are recovering, it is a market that is liked by an objective population, a market that is sustained.
The state, last year in view of what we were living, took out some norms that allowed lotteries to sustain themselves financially and to be able to dynamize the market, alternatives so as not to have to close for having zero income.
"We have been rebuilding ourselves with a lot of tenacity and looking for a completely reactivated sector, prosperous and with a better future" Luz Stella Correa.
MV: The lottery has traditionally been a product where the elderly have a greater participation in the purchase, during the Quarantine they were the ones who had to be at home the most, how was this reflected in sales?
LSC: Sales were reflected through a reactivation with a closing of 2020 in a total sales level of 76% compared to 2019. Now there are some lotteries that have managed to reactivate 100% and the senior citizen is that person who still accesses the lottery, with big dreams that are still part of their way of life, and that is why it remains a very important product in the Colombian market.
MV: What are your plans to attract a younger public?
LSC: Lotteries have been doing activations in different places, penetrating the shopkeeper plan where the younger person is given access to purchase, with closer points of sale. We have always dreamed of having a more dynamic game seeking to promote electronic channels, we have to keep growing to have a product with virtual draws.
These are issues that we are proposing to the government, the regulatory limitation is a permanent struggle. Improving our prize plans, such as scratch cards with tablets, will increase the interest of the young population.
MV: With the implementation of virtual lotteries and now, with the authorization of commercialization of alternative products with high prizes by Coljuegos, what new products can we expect from lotteries?
LSC: We have an alternative mechanism, a kind of instant lottery, which will allow a greater market dynamism. It will be a future topic but it will allow us to capture a young market with a product of immediacy, as the young customer likes, with faster prizes, without having to wait for a drawing.
Now we have a new game launched by the national gambling council together with the government, a game that is pending to be launched because at the moment we are in our financial, market and legal studies looking for results that will allow us to make these new games successful for us.
MV: Is it utopian to think that Fedelco organizes a great national lottery, that unifies a great jackpot and that uses all the independent distribution channels for the common benefit?
LSC: We cannot say that it is an ideal project or that it is impossible, our interest now is to strengthen the regions, in fact the lotteries have their hook in annual celebrations of the same region. Colombia is still a country where the regional aspect weighs a lot, it is better to have several plantations that give fruits than to have only one unit, because we have seen attempts of lotteries at a national level that have not been so fruitful.
At this moment Colombia has 14 lotteries with sales of more than 600.000 million pesos (USD$157994.16) that have given great results in spite of having a great tax burden, we must think about strengthening them. At this moment we are focusing on other issues as I mentioned, but it does not mean that there is no unity.
These are issues that are under study, but I cannot tell you that it is impossible at the moment we are focusing all our efforts on strengthening the sector and the regions, because they are giving very good results and we must seek that this continues because it is a benefit for everyone, including Colombians.
