Can you tell us what have been the different steps that marked the development of the National in Macedonia since its creation?
It has been created in 1945. At the time it was Yugoslavian lottery, and Skopje was a branch of the Yugoslavian Lottery. The name Lotarija na Makedonija came in 1972. This field has been regulated by the law according to which this branch became Lotarija na Makedonija and took over all the assets and liabilities as well as the competencies of the Yugoslavian Lottery. So Lotarija na Makedonija has been operating for almost 30 years.
We still had close cooperation and created Association of all the Yugoslav branches - named "Yugo-Lotarija" for the common games that we used to organize together like Lotto, Sport Prognosis etc. The drawing was also common for all the branches. The principles that were bought/sold in Macedonia stayed in Macedonia. The formula we had was very successful: All the premiums drawn on the territory of Macedonia were paid by Macedonian Lottery, except the jack pot. As big as it could be (because it was a huge amount in Yu at the time), Macedonian Lottery would have paid it and then refund the funds. The principle of the jack pot was: Each republic participated in that fund with corresponding funds of 10% of the local turnover.
In the future something similar to that principle, which is also similar to the principle of the Scandinavian joint Lotto - can be applied on the Balkans. We had such initiative, we already had - some three years ago - in Varna. The idea is not abandoned, but just on hold given the circumstances in Serbia (Yu).
The national lotteries of Greece, Turkey, Roumania, Yu, Bosnia and Herzegovina, and Macedonia expressed their willingness for such a Loto. In this respect, some more specific undertakings are taking place in relation with Greece, Cyprus. Greece and Cyprus already have such Lotto, we offer to take participation. In a time when there are plenty of Greek investments in Macedonia, we're interested to become the third party to that lottery, which can also be seen as one step forward towards the Balkan Lotto.
When do you expect establishment of such Balkan Lotto?
That issue is to be discussed and adjusted among the states and according to the legislations.We have started with quite an ambitious plan with the Greek "Intralot" - producer of equipment for games of chance. The procedure reached the stage of preparing a business plan, which counts with the idea of the Balkan Loto. There have been contacts on highest level, still , we're staying only with the idea due to the law which did not gave us the possibility to get involved in joint games of chance with other lotteries. I see it as very constraining; still I think that by being persistent we can prove the advantages and potential of the globalization in our field. It is of extreme significance for small countries, with small population, such as Macedonia.
How important is it for you to create those partnerships with other regional lotteries?
The Yu formula would explain our reasons. For lotteries of smaller size the advantage is that in the Balkans Lotto there would be many countries participating Greece, Cyprus, Turkey, Roumania, Yugoslavia, Bosnia, Macedonia, Albania, Moldavia. There would be more than 120 million people which represents a huge market with the potentials to achieve - very fast- large amounts for the jack pot. As comparison - in small country like Macedonia, if 6 months the jack pot is not drawn there will be an accumulation of 500-600 000 DM, while in a potential Balkan jack pot, each time the jack pot is not drawn the amount accumulated would rise very high. The normal consequence would be - naturally, strongly increased interest. I would like to mention here that there is already the idea of creating a European Lotto. Even ideas for creating lotto games on the Internet. It is something that the small countries can simply not achieve. These are my reasons for criticizing the legal regulations closing for us the possibility for such cooperation. Certainly, the globalization process going on all over the world cannot avoid the field of games of chance.
Dou you have the possibility, yourself or your organization to lobby efficiently, through European associations, for improved legislation?
Yes, we do lobby. I think that once we finally reach an agreement with our Greek and Cyprus colleague, or once the Balkan Lottery is created, I'd say there won't be much of a problem to modify such law within an urgent procedure. Therefore we don't make much noise about this issue for the simple reason that what is in favor for the players will be in favor of the state - they will pay taxes.
How do you envision the evolution of your sector within the next few years?
We expect the downwards line of the last few years to stop this year. This is a hard time, workers laid off in companies and public administration. The problem is that the people laid off cannot find a job, even if it is less paid. With the unemployment rate of Macedonia - the highest in Europe - we're exposed to a difficult pressure that creates an unfavorable atmosphere , a climate of uncertainty is established. One more concern - young, well educated people are regularly leaving Macedonia, so I'd say that the reforms could slow down the pace.
With the best effort invested, we can join the EU within 10 years. Thus it is clear - as soon as we deal with these problems, sooner we shall approach to the EU. So, clearly, the choice is not easy. No matter what political party on power at this period of time would have had to accept to do the same.
Do you participate to social programs, what is your involvement in the progressing of the local community?
The games of chance, in this case organized by the state, have their meaning and are justified, when the funds go to social programs, mass sports, charity programs, health prevention, aid to disabled persons etc. Until '96-'97 the Lottery, was society owned and was one of the companies of special social interest. Therefore, our top management body comprised representatives from the Parliament, political parties and users of their money like the Red Cross and a few more. The annual balance sheet that I used to prepare was adopted by them. In '97 the Lottery goes into privatization and ever since the money collected by the Lottery goes to the budget. That means all the social programs are prepared and realized by the Budget, after we pay all the lump sum of the taxes towards the state. We operate as a joint stock company with all its features. | There is maybe a confusion in relation with the existence of private lotteries. The newly adopted laws justify it by the competition created. By that it is made equal to any other merchandise, good on the market which I see as an excessive approach.
The level of competition is already reached. I find that it is wrong for two reasons:
1. When privatizing the Lottery that used to exist as society/public owned, it cannot remain a monopole - which is normal. If there is an absolute monopole, doing business would be more than easy.
2. But it's totally wrong when anyone can organize games of chance, because: the market is too small and it cannot remain clean, so the state will not collect much money in its budget. Also - any irregularity will be on detriment of everyone in the business.
We sell hope, so the most important for our product is to be honest. No matter who is dishonest, a company like ours -well established and serious, with 300 employees, with 130 of its own shops all over Macedonia and 200-300 contractors in Macedonia, a company paying taxes regularly - would also suffer the same bad reputation as it is for the whole branch in such case.
Regulating such problems - anyway - is a task of the inspection authorities.
How many private lotteries are there in Macedonia?
There are many examples where there are both private and state owned lottery. The practice shows that a private lottery operates better than a state owned one. It is all about control and dividing the profit. A private company, of course, takes more care for the players.
One of my arguments against the wide competition in this branch is precisely the security that the state should provide to the players…the state in this case because, unlike other businesses , organizing games of chance is forbidden in principal, except what is prescribed by the law. I find the best solution would be to give licenses to two or three organizers. On the territory of Macedonia some licenses can be grouped together with the purpose to organize them on a very high level, i.e. a Lottery can not live only with the Lotto, but if besides the Lotto, a lottery has a license for other games like betting and slot machines, it can survive. Others would also be allowed to organize betting, slot machines and similar, but Lotto would be exclusive. There must be something as a basis to provide the elementary security for the company. That's how I see the formulas suitable for our circumstances.
I have to say also that we still need some more experience and with better organization, things will work well.
What is the priority for the short term development of your company?
We are in serious discussion with a greek company for at least a joint venture. We have very old fashioned machines, we still work with off line systems and we definitely have to switch on the on-line systems, especially now considering the plans for wide-region lottery. We're open for other partners, discussions, the priority is to go on-line. On the basis of the licenses we'll see what we'll need, what is the profitability forecast… The tendencies show that some games are in decline, some becoming increasingly interesting, we'll keep the pace with the time.
I have to say that I don't agree with the theory that in difficult times, crises, wars, the games of chance are in progress. For a long time now we know that is not true.
From past experiences (in Yu) we observed that the use of these games was proportional to the standard in Yu.
If the theory had been true, the games of chance would be the best business of China.
A small country like Finland, since years ago (compared with Yu because it had much better standard) had 4 times more turnover than the lottery of Yu.
In fact, the lotteries turn out to be a mirror of the life standards.
In times of uncertainty, as we're experiencing now, the games of chance are on a dangerously low level. Of course, the Lottery is and will be seeking ways to develop, one of them is the joint lotteries with elegant formulas, and on-line lotteries.
We cooperate very well, both with European and the Balkan lotteries. If it was up to us there would have never been any crisis in the region. Nowadays we are going to meet, Managers of the ex-Yu republics, to see what can be done for further co-operation. I'd compare that with the excellent co-operation of the Balkan countries in the Olympic committee. We have the idea to organize a Balkan football championship.
Calculating the number of prizes and Olympic medals won, the Balkan countries together have more than whole continents together - more than Africa, South America, Australia…
We already discussed about how to help the Greeks for the Olympic games 2004.
So what I am saying is that we are entering in Balkan integration as far as sports are concerned. With the Lottery, we are starting and the chances are strong…
In this respect we are more vital and active than the politicians.
Do you have to be a gambler to be in this business?
I have been General Manager for 15 years. One does not have to be a gambler, but it is recommendable to know the games. I have been playing occasionally for 30 years and I have never won any important prize. When I am asked why playing if it is not to expect to win; my answer is the one that doesn't play will never win. |
Lottery of Macedonia