Frequently Asked Questions
Below are what one might consider the Most Frequently Asked Questions in regards to the viability and operation of this project.
1) What will happen to the existing lotteries, legal or illegal?
The Government’s interest is to gradually replace all of the paper-based paper lotteries with its electronic replacement. There may be a few ruffled feathers and illegal gaming will by no means completely disappear, but the clear intention is to migrate all of the country’s gaming activities, legal or otherwise, to an official supervision, thereby increasing its tax take.
2) What are the risks of non-payment by the Vietnamese government?
Pacific Lottery has received all payments on the existing Hanoi Lottery contract, on time, since the beginning of the project; they have been and remain good payers. It is interesting to point out that there is a clause in the contract whereby the Vietnamese have waived sovereign immunity in the contract and all disputes arising shall be settled by the International Court in The Hague.
3) As regards US$ payments made to Pacific Lottery, how stable is the local currency the Dong?
Vietnam has the second lowest depreciating currency in Asia, behind China, over the past 10 years. The Vietnamese currency, like China’s, is not a floating currency and has depreciated approximately 10-15% during this period. Although recently their has been more volatility, the currency remains strong and stable.
4) What does the retailer have to gain by switching to the new lottery?
The retailer will receive the same commission as the traditional lottery. There will also be additional incentives derived from the various marketing campaigns. This, in our view, is an extremely good deal for him. Therefore, it is felt that the retailer in Vietnam will quickly adopt the new electronic lottery.
5) How are revenues split?
In general, revenues are distributed between the Government, the players in the form of winnings, retailers, operational costs, and the technology and services supplier.
6) Why did the Vietnamese Government decide to award this potentially very lucrative contract to a Canadian company rather than an established player?
The technical success in Hanoi, followed up with the opportunity for the Government of Vietnam to secure Lottery technology, including in country manufacturing of terminals with possible export potential, convinced the Government it would receive greater long-term industrial benefits by choosing this approach.