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Playwin to set up 5,600 terminals in 6 months

BS Corporate Bureau

Playwin Infrawest, agents to India's first online lottery, Playwin Sikkim Super Lotto, plans to increase the number of lottery terminals to over 8,000 from around 2,400 currently over the next six months.

The company also hopes for an exponential increase in the number of bets placed on online lotteries, with the increase in the number of terminals and public awareness. Ashok Goel, director, Essel Group, said: "We are planning to increase the number of terminals, each of which costs around Rs 35 million, to around 8,000 in six months. But we are hopeful of a break-even in the first year of operations itself."

Around 7.5 million bets were placed on Playwin terminals last week. Nine weeks ago, when Playwin first launched the online lottery, the company had received 3 million bets. Each bet is worth Rs 10. Company officials said an average customer places at least 2 bets.

Most of the betters currently come from the poorer sections of society. However, company officials expect more people from the middle and upper classes to participate in the online lotteries in the coming months.

Currently, 45 per cent of the revenue collected from bets goes towards prize money, while 20 per cent goes to the state government which promotes the lottery. This 20 per cent is reserved to be spent on healthcare and educational programmes in that state, the company executives said.

While 6.5 per cent goes towards commission for the traders, the balance goes towards Playwin's promotional and other overheads, and profit margins.

Playwin executives said the profit margins are in the "single digits", but declined to reveal the exact figures. However, it is expected that as the number of bets rise, the total profits will increase proportionately.

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