The Swiss Loterie Romande public lottery has successfully navigated a year of challenges, reporting a decline in revenue but a rise in both profit and contributions to charitable causes for the year ending December 31, 2023.
Record Profit Achieved Despite Revenue Drop
In its annual report for 2023, Loterie Romande recorded a gross gaming revenue of CHF420.7 million ($458.9 million/€423.9 million/£360.6 million). This marks a 3.4% decrease from the previous year’s record of CHF435.5 million. The lottery provider, which serves the six French-speaking Swiss cantons, attributed the revenue decline to geopolitical and economic challenges. Additionally, a lack of extended jackpot cycles for both Swiss Loto and EuroMillions diminished demand from casual players at various points of sale.
Popularity of Lottery Games
Despite the revenue drop, approximately 70% of adults in French-speaking Switzerland participated in a Loterie Romande game in 2023. The most popular game, EuroMillions, was played by 67% of the population. This was followed by Tribolo scratchcards (61%), Swiss Loto (56%), and Rento (41%). Lottery draws continued to be the largest vertical, generating CHF152.3 million, although this was an 8.4% decrease year-on-year, largely due to the absence of long jackpot cycles. Instant win tickets contributed CHF135.3 million to the total revenue.
Financial Strategies and Investment Performance
In 2023, Loterie Romande saw a significant increase in profit and paid a record amount to public utility causes. The organization will distribute CHF243.7 million to charitable causes, a slight increase from the CHF243.4 million given in 2022. A key factor in the profit growth was savings on financial expenses and income. Unlike in 2022, financial investments delivered positive results, generating a net profit of CHF5.1 million. Additionally, Loterie Romande managed to slightly reduce marketing and general administrative costs.
Rigorous Management and Diverse Offerings
Jean-René Fournier, chairman of Loterie Romande, attributed the favorable results to rigorous management of operating costs, an enhanced digital offering, and the introduction of the European draw game EuroDreams in October 2023. These strategies helped diversify the product range and attract more players, despite the challenging market conditions.
Contributions to Community and Sports
Loterie Romande’s commitment to good causes remains strong, with nearly 5,000 projects in Vaud, Fribourg, Valais, Neuchâtel, Geneva, and Jura set to receive a total of CHF220.8 million. Additionally, national sports will receive CHF19.5 million, while the Swiss Horse Racing Federation will benefit from CHF3.4 million in funding.
Sustaining Growth Amid Challenges
The achievements of Loterie Romande in 2023 highlight the effectiveness of strategic financial management and a diverse product portfolio in sustaining growth. The organization’s ability to increase profits and support numerous charitable projects, despite a decrease in revenue, underscores its resilience and commitment to the communities it serves. With the continuous enhancement of its offerings and prudent cost management, Loterie Romande is well-positioned to navigate future challenges and maintain its positive impact.
