El Salvador, the Central American country making waves for becoming the first country to recognize bitcoin as legal tender, is expanding its interest in lottery products. To do so, it will rely on assistance from Canada following the approval of a legislative measure last week.
With 64 votes in favor and four against, deputies of the Legislative Assembly ratified in the plenary session last week the “Economic Agreement for the Implementation and Operation of a National Electronic Lottery between the Government of El Salvador and Her Majesty the Queen in Law of Canada.” The initiative will not only have economic benefits for the country, but will also enhance the diplomatic relationship between the two countries.
The two countries initially signed the agreement this past February. However, the Assembly needed to sign off on it for the work to begin. The project has a term of 10 years, with the opportunity for renewal.
El Salvador Continues Digital Advance
The electronic lottery will be added to products offered by the National Lottery of Beneficence (LNB, for its Spanish acronym), according to a publication of the Legislative Assembly. In turn, El Salvador and Canada will begin to manage and promote economic cooperation and social development between countries.
In addition, the agreement allows El Salvador to obtain funds for public health, education, and social assistance programs. The new lottery products will also provide financial support for lottery ticket sellers and encourage the development of municipalities’ infrastructures.
The agreement establishes that, of the total income that the National Lottery receives, 10% will be allocated to the municipalities for the execution of works for the benefit of the population. An equal percentage will benefit the lottery sellers. Public health, education, and social assistance projects will receive the rest.
As an added bonus, according to the lottery announcement, El Salvador isn’t making any financial investment to launch the new initiative. Instead, the Canadian Commercial Cooperation (CCC) will incur the expense.
The CCC is a government-led entity the Parliament of Canada developed in 1946. Its charter includes the development of bilateral and multilateral trade agreements. In addition, it increases domestic access to international goods and services, and vice versa.
Regional Economic Growth
The president of the LNB, Javier Milián, gave lawmakers a rundown on how the new lottery products work. He described the electronic lottery as the next step forward, since with it, consumers can buy a ticket with specific numbers they choose.
In addition, up to three draws per day are possible through the implementation of the electronic lottery. Milián also highlighted the benefits the new lottery offering will bring to local communities.
There is also a need to cater to a younger generation of consumers. This segment is more attracted to digital products while not ignoring the traditional lottery ticket markets. Milián pointed out that the electronic lottery is filling a market niche and creating new revenue streams that will boost El Salvador’s economy.
In addition, CCC will open operations in El Salvador. This will generate more employment, since the company will have to hire administrative staff and sales, operational, and commercial personnel. Despite the expense the operation will incur, Milián assured lawmakers that a minimum of 50% of the lottery sales will comprise the lottery prizes.
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