Takarakuji lottery revenues on declining path

Japan’s Takarakuji lottery tickets witnessed a year-on-year decline of 6.9 percent in FY2017, falling to JPY786.6 billion ($7.1 billion). This continues the downward trend that has been in evidence since peaking over a decade ago in FY2005.

About 47 percent of Takarakuji ticket sales are returned back to the public through prizes and about 40 percent goes to local governments to cover budgets for infrastructure, social welfare, and other related matters. In effect, it is a form of voluntary taxation.

The National Autonomous Lottery Council is jointly operated by Japan’s 47 prefectural governments and its 20 designated major cities.

A key reason for the continuing decline of lottery revenues is that relatively few younger Japanese have shown an interest in buying lottery tickets as opposed to more enthusiastic elderly Japanese.