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Lottery agents in San Juan Province, Argentina, are raising an alarm about the diminishing profitability from the sale of CAS-operated lottery products, which is the provincial lottery operator, Caja de Acción Social. Ernesto Pérez, representing the Chamber of Lottery Agencies (CALA) in San Juan, presented the industry’s growing concerns in an interview with local news outlet La Provincia SJ.
Although there has been a slight increase in lottery revenue in 2025, it has not kept pace with Argentina’s persistent inflation. Pérez explained that while agents have seen a monthly revenue increase of around 2% to 3%, this modest growth has not been enough to offset rising costs. “We’ve been keeping up with inflation, but just barely. There’s a bit of a hump every month, but you can feel the lack of money at the end of the month. People run out of money, and sales plummet during those last couple of days,” he noted.
Fixed Expenses Erode Agent Profit Margins
Added to the sluggish revenue growth, agents are also facing rising fixed operating costs, including rent and electricity. Pérez noted that these have increased more than lottery revenue. “Rent, electricity—these have increased much more than our revenue. That’s why profits have decreased so much,” he said.
Consequently, some agencies have relocated to less expensive offices in an attempt to cut costs. However, Pérez detailed that the number of closures is small and there has not been a wholesale closure of agencies. “There were some moves, but not a lot of closures,” he added, showing that while the industry is indeed feeling the pinch, it is still managing to keep its head above water—at least for now.
Growing Threat of Illegal Online Gambling
Apart from financial concerns, CALA also pointed to the rapid growth of illegal online gambling websites, a trend that threatens the sustainability of offline lottery operations. Pérez warned that without adequate regulation, the websites would siphon off players and revenue from the regulated market.
“Sooner or later, we will have to accept online gaming, but we must have clear rules and a position in the system,” said Pérez. His words reflect a broader concern among traditional agents that unless they are given a role in the online gambling revolution, they will be bypassed by a wave of unregulated digital operators.
A vast array of online games marketed through social media already occupy a legal limbo or are downright illegal. However, change may be on the horizon. A law regulating online gambling in San Juan was recently passed, and according to Juan Pablo Medina, President of the CAS, the regulation process is nearing completion. “The law is already in place for all online games appearing on social networks. Now we’re waiting for the implementation regulations, which are expected to be ready by June. It’s good that illegal apps will be sanctioned,” Pérez continued.
A Sector in Transition
San Juan’s struggles mirror broader challenges for lottery agents across Latin America, where high inflation, changing consumer behaviors, and digital disruption are forcing centuries-old business models to innovate at pace. The survival of San Juan’s agents hinges on balancing the operational demands of offline lottery sales with the urgent need to go online—legally and equitably.
Whether the new law will provide that opportunity remains to be seen. What is clear, however, is that the sector is at a fork in the road. Short of short-term relief or incorporation within new forms of regulated digital gaming, the commercial prospects of many small lottery businesses in San Juan could be at risk.
In the meantime, CALA and its members continue to advocate for workable solutions that protect the livelihood of lottery agents while remaining in sync with technological advances and market evolution.
Source: YogoNet
