Profit pressuremounts on San Juan lottery agencies as consumer habits shift

(AsiaGameHub) –   San Juan’s lottery agencies are struggling to meet the rising demand for lottery services. A lot of this surge in activity has been driven by big jackpots over the past few months, sparking renewed interest in lotteries.

Yet, despite this uptick in activity, these agencies haven’t been able to boost profitability or grow their revenues—mainly due to higher operational expenses.

Ernesto Pérez, a representative from the Chamber of Lottery Agencies (CALA), said:

Our current revenues are more than 50% higher than what we earned in the same period last year. But the financial situation remains complicated. Even with increased revenue, our profit margins are shrinking.

Industry players have also voiced worries about escalating business costs—like utilities, rent, and other regular operational expenses—which are rising far faster than revenues. This adds another challenge for most of the industry, especially since the number of lottery agencies is on the decline. For instance, San Juan had 440 lottery agencies four years ago, but now that number has dropped to 390.

Another hurdle for the lottery industry is the spread of online gaming platforms. Even though it’s illegal for individuals to run such platforms, their growth has become a genuine threat to the lottery business.

Ernesto Pérez further noted:

Online gaming isn’t permitted in the province, but apps are popping up, and people—particularly younger users—are gravitating toward them. We want to be part of any legal app that’s developed.

These developments have led to major shifts in San Juan’s entire lottery industry. While demand growth has been driven by jackpots and promotional campaigns, new costs and technological changes are together transforming the industry’s business model.