Recently, Ha Tinh Lottery Company Limited has sent a report to the Provincial People's Committee, relevant departments and agencies on the financial situation of the unit and stated the causes and solutions.

Accordingly, from 2018 to the end of 2023, the company suffered continuous losses, accumulating more than 6.1 billion VND. In 2023 alone, Ha Tinh Lottery lost more than 698 million VND.

Revenue in 2023 is the lowest in the past 5 years, only 86.4% of the plan, down 12 billion VND compared to 2019. Tax debt increased from 2.9 billion to more than 3.5 billion VND.

Due to many years of losses, tax arrears have been prolonged, with annual late tax payment costs of 200-300 million VND. Each year, the company receives 7-10 decisions on tax enforcement and bank account freezing. Financial insecurity, in 2023, due to non-payment of taxes, the company was forced to collect invoices.

According to Ha Tinh Lottery Company Limited, the objective reason for the heavy business losses is that Ha Tinh's market is small and has a small population. The operation of computerized lottery (Vietlott) has exploded, customers can choose to play online... so the market and revenue are competing and shared.

As for the main reason, the company's report pointed out that due to the high payout rate exceeding the regulations of the Ministry of Finance, the risk from paying lottery tickets is high. In 2023 alone, the company paid out more than 14.7 billion VND in prizes, accounting for 55% of ticket sales revenue.

The high payout, according to the leader of Ha Tinh Lottery Company Limited, is "due to the player's luck".

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Financial situation of Ha Tinh Lottery in the past 5 years.

In addition, according to this company, lottery evils are developing everywhere.

"The anti-lottery measures of the authorities are not strong enough and not continuous enough, so the lottery has taken over the lottery market" and partly because many delegations from lottery companies from other provinces come to visit and exchange, leading to increased costs for receiving guests.

To increase revenue and overcome losses, Ha Tinh Lottery said that in the coming time, it will increase advertising and marketing so that people understand that lottery activities "benefit the country and benefit the family"; at the same time, expand the market to rural areas, where there are many people...

At the same time, regularly provide information about private lottery establishments to recommend local police forces to inspect and handle; review the entire system of agents taking advantage of selling lottery tickets to record private lottery numbers.

In addition, the company will reduce the cost of paying prizes; limit the prize value for each prize number. Reduce direct issuance costs and business management costs; limit receiving guests and meetings.

Previously, on July 3, the People's Committee of Ha Tinh province issued a decision on special financial supervision of Ha Tinh Lottery One Member Co., Ltd. (located at Nguyen Cong Tru Street, Ha Tinh City) until the end of 2025.

The reason is because this company shows signs of financial insecurity. The total accumulated loss by the end of 2023 of Ha Tinh Lottery is greater than 50% of the owner's investment capital.

Ha Tinh Lottery Company was established in 1993. In October 2007, the company changed its operating model to a one-member LLC, owned by the People's Committee of Ha Tinh province.

Due to signs of financial insecurity, Ha Tinh Lottery One Member Co., Ltd. has been placed under special financial supervision. The reason for the loss, according to the company director, is because many customers have won prizes.