The Belarusian Lottery: Who Is Actually

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SIPDIS

SENSITIVE

SIPDIS

E.O. 12958: N/A
TAGS: ECON PGOV BO
SUBJECT: The Belarusian Lottery: Who Is Actually
Winning?

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SENSITIVE BUT UNCLASSIFIED; PROTECT ACCORDINGLY


1. (SBU) Summary: Belarus' lottery industry is booming.
The two largest of Belarus' 30 registered lotteries
gross USD 6 million per month, with half of that amount
going to the GOB to purportedly finance social and
sports programs. In light of the industries' high
profits, Lukashenko in May ordered his pro-government
youth group to create and operate a national lottery,
with the proceeds to be used strictly for increasing the
youth group's recruitment and spreading its ideology.
End Summary.

Big Money
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2. (U) The lottery is becoming one of the most
profitable businesses in Belarus. According to the
Ministry of Finance, Belarus has 30 registered local and
national lotteries, but economists believe the market
could support several more. The authorities quickly
assumed control over the fledgling lottery industry in
1998 when Belarusian dictator Aleksandr Lukashenko
signed a decree on several measures to regulate lottery
activities. In accordance with this decree, the Council
of Ministers in 1999 passed a resolution that resulted
in the creation of two state-owned regulatory bodies,
the National Sports Lottery (NSL) and Belarusian Lottery
(BL).


3. (U) The BL, which falls under the control of Belarus'
Securities Committee, operates one of Belarus' most
popular lotteries, VashLoto (Your Lotto). VashLoto
sells on average 590,000 tickets per week at BYR 2,000
(USD 00.93) per ticket, grossing approximately USD 2.1
million per month. The NSL, which is under the control
of the Ministry of Sports and Tourism, operates Belarus'
largest lottery, SuperLoto, which sells, on average,
748,000 tickets per week at BYR 3,000 (USD 1.40),
grossing approximately USD 4.2 million per month. The
odds of winning one of the many prizes (i.e., cash, home
appliances, apartments, and cars) are relatively
favorable, with 12.7 percent of VashLoto tickets and 19
percent of SuperLoto tickets being winners.

A Big Chunk Going To The GOB
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4. (U) Fifty percent of the lotteries' revenue is used
for prizes and the remaining half goes into the state
coffers. According to their charters, NSL's proceeds to
the GOB are to be used to finance physical fitness and
sports development programs, particularly Olympic
activities, and BL's proceeds to finance social
programs. However, unlike VashLoto's and SuperLoto's
websites, where breakdowns of expenditures and sales are
available to any user, the fate of the GOB's share is
not public information.

Luka-Youth Cashing In
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5. (U) The pro-Lukashenko Belarusian Republican Youth
Union (BRCM),under Lukashenko's initiative, has decided
to milk this new lottery cash cow. In May, Lukashenko
signed a decree ordering the Ministry of Finance to
establish a new lottery called "Unost" (Youth). The
BRCM is to implement Unost, but unlike those run by the
NSL and BL, BRCM is to keep all its proceeds. According
to Lukashenko's decree, the money is to be used to
accomplish goals set forth in BRCM's charter, pay
personnel wages, and cover the BRCM's Central
Committee's expenses. According to independent online
news source BD Delovaya Gazeta, the BRCM lottery is, in
addition to direct GOB funding, to be used to fulfill
Lukashenko's plans to increase BRCM membership and,
hence, spread his ideology.

Comment
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6. (SBU) Lottery ticket sales are growing as many
citizens hope to win a car or a house that they cannot
afford on their meager salaries. One journalist
accurately called Belarus' lottery business "The Battle
For Belarusians' Wallets," though it appears to be more
of a GOB battle. It is a profitable industry and, as
any profitable industry in Belarus, is firmly under GOB

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control with proceeds being used at the authorities'
discretion. Emboffs have heard that deputy head of the
Presidential Administration Natalya Petkevich's husband
is one of the main directors of the Belarusian lottery,
suggesting that the upper echelons of Lukashenko's
regime have their fingers deep into the lottery pie.

KROL