There was a time when we were rich in Spain. The state had a legion of public companies that, more than two decades later, still rank among the country’s most important companies, some even in the Ibex-35. Endesa, Gas Natural, Red Eléctrica, Repsol, Iberia, Transmediterránea, Argentaria, Aceralia and Indra are some of the soldiers of the economic empire that was once in the hands of public administration.
With the modernization of the Spanish economy and its subsequent entry into the European Union and the euro, José María Aznar Major public investments and liberalization of the national economy began. Despite numerous sales, the State maintained ownership of other companies that remained in public hands under the public service umbrella: Correos, Renfe, Adif, Navantia or EFE. Most of these companies make losses every year. But, The ownership of the goose that laid the golden eggs belongs to the General Directorate of State Heritage.A company that every Spaniard knows, but whose accounts are at the same level or higher than the 35 largest companies in the country, State Lotteries and Betting.
The goose that lays golden eggs
The State Lottery and Betting Company of the State SME closed the 2022 financial year with revenues of no more than and no less than 9 billion 698 million euros. highest turnover in its entire history. After leaving the pandemic behind for the second year in a row, its profits, which went directly to the public coffers, amounted to 1,993 million euros, according to Insight View records.
Figures run by the state trading company show it as follows: One of the most important companies in the country. Its figures are on par with the main multinationals: worldwide, it generates profits similar to those of Telefónica and exceeds those of major companies such as El Corte Inglés or Mercadona.
Beyond the value of voluminous results, State Lottery and Betting is part of the monopoly-oligopoly in daily draws. You can count on the fingers of one hand the number of companies that hold periodic raffles of these properties: Red Cross and Gold raffles, Once Upon a Time tickets and Lotteries.
Roulette or bingo deals more
There were 180 million tenths in the Christmas Lottery in 2022, which means 20 euros per unit. 3.6 billion potential collections euro. However, How much did you intend to distribute? Specifically 70%, 2.520 million. Based on the fact that no betting game in which a for-profit agent intervenes gives away more money than it receives, the Christmas draw is the least of all methods.
In case of betting, The margin of one of the biggest bookmakers in the final Women’s World Cup between Spain and EnglandThe match won by the Spanish team, It was around 3% -according to this newspaper’s calculations- on December 22, the State Lottery and Betting gets 30%. According to the specialized blog Fr9.es, physical bingo has a lower commission, which can range from 10% to 30%. Slot machines are also not as profitable as the lottery, which has a margin of 2% to 4%, as the children of San Ildefonso say; nor physical roulettes, which distribute around 80% of their revenue based on the machines’ advertising.
Treasury always wins
If there’s anyone who wins a nice jackpot in the Christmas Lottery every year, it’s the Treasury. During Mariano Rajoy’s first term, the economy minister of the People’s Party, Cristóbal Montoro, introduced the prize tax in the midst of a serious economic crisis. By Law No. 16/2012, 20% tax for winners of prizes exceeding 2,500 euros. This rule has now been changed over 40,000.
According to the report prepared by Gestha Ministry of Finance Technicians Association on December 22, 2022 Treasury received up to 163.8 million in withholdings. From the first prize winners to the tenth winners of 400,000 euros, 72,000 euros were given to the public coffers. They collected 17,000 euros from the second and 2,000 euros from the third.
The situation is paradoxical: a citizen pays 20 euros to a public company, the company distributes only 14 euros in prizes and pays taxes if successful. is An almost perfect mechanism where Public Administration always winsTreasury and State Lotteries and Betting.