International edition
September 20, 2021

Canadian operators to invest us$ 6 million

The implementation of the Online Lottery approved in Nicaragua

(Nicaragua).- Last week, representatives before the National Assembly gave their approval for the implementation of the Online Lottery in Nicaragua, when, with 64 votes in favor; 16 against and an abstention, they will ratify the Memorandum of Understanding concerning the Cooperation for the Development of the National Commerce between Nicaragua and Canada.

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ust the 16 representatives of the political party Bancada Democrática Nicaragüense (BDN) opposed to the agreement, alleging that the beginning of operation of this new kind of game would bring more harm than benefits, mainly to lottery sellers, who have alleged that they could lose their jobs with the implementation of the Online Lottery.

Once more, FSLN Representative, Wálmaro Gutiérrez, President of the Financial Commission of the Parliament, defended the introduction to the country of the innovative gaming form, alleging that the Canadian operator of the Online Lottery will invest 6 million dollares in the first three years, and that the government of Nicaragua “will not have to pay a cent for this modernization process of the national lottery,” according to the contrat signed.

Besides, he said, the National Lottery will receive between 12 and 18% of the annual gross incomes generated by the Online Lottery for charitable work. Gutiérrez denied that the company that will operate this game will control all the promotions that TV channels perform together with cell phone companies.

However, according to a contract between the Canadian Commercial Corporation (CCC) and the government of Nicaragua for the operation of the Online Lottery, it is clearly established that “the operator” will have the exclusiveness of all the online games of chance, including those performed through the MSN system, it means, “Chat” via cell phones.

Another disadvantage for Nicaragua, although Gutiérrez did not say so, is that the Canadian company that will operate the Online Lottery will use the installations of the National Lottery without paying for a rent; besides, this firm will subcontract a “local subsidiary” that is not defined yet.

But, besides, the Canadian company has the power to hire its own personnel, which will not be the same that works for the National Lottery; additionally, all the technology used by the operator will belong to it, and once it does not implement this game any more, it will keep all the equipments. 

It will have a 15-year exclusiveness, extendable for successive periods of seven years.

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