South Korea launched mobile lottery sales on Monday, ending a 23-year restriction that required buyers to visit physical stores or use desktop computers. The move has sparked concerns among approximately 8,000 offline retailers worried about declining revenues and rising tax burdens.
Starting June 9, consumers can purchase Lotto 6/45 tickets through the Donghaeng Lottery mobile website, according to the Ministry of Economy and Finance's Lottery Commission. The government had previously limited sales channels to offline stores and PC websites, citing concerns over gambling addiction and excessive participation.
The policy shift aims to improve accessibility for consumers in their 20s and 30s, who show relatively lower lottery purchase rates. The government implemented safeguards including a 5,000 won ($3.60) per-person weekly limit for mobile purchases and restricting sales to weekdays. Online sales through PC and mobile combined will be capped at 5% of the previous year's total lottery revenue.
Retail operators expressed alarm at the announcement. Rising consumer prices and rental costs already strain their businesses, and they fear mobile purchasing could divert foot traffic from neighborhood lottery shops.
Retailers voiced particular frustration over their profit margins. Stores currently receive 5.5% of sales as commission, including value-added tax. A single 1,000 won lottery ticket yields 55 won in commission, but 5 won goes to VAT.
The net commission stands at just 5%. After deducting cash-handling costs, labor expenses, and rent—compounded by the cash-only payment requirement for lottery tickets—actual take-home earnings shrink further.
The government maintains that limiting mobile sales to 5% will minimize impact on physical retailers. Market reaction remains divided. Supporters call it a natural evolution for the digital era, while opponents argue the policy sacrifices small retailers under the guise of public interest.