VAT lottery changes follow scrutiny over suspicious repeat wins

Malta’s VAT receipts lottery is moving to two draws a month, with a combined prize fund of €120,000, following scrutiny of its administration after dozens of participants emerged as repeat winners, including one who won at least 13 times in little more than a year.

The revised rules, published in the Government Gazette, provide for two monthly draws with a €60,000 prize fund each, replacing the previous system of one draw a month.

The Shift reported in July 2022 that a Bormla resident had won the lottery at least 13 times since January 2021, including four prizes in a single draw. Later reporting identified 24 participants who had won repeatedly within less than 18 months, raising questions about the lottery’s administration and the fairness of its procedures.

Finance Minister Clyde Caruana subsequently told parliament that two investigations had found no irregularities. He also said recommendations made following earlier audits had been implemented, including replacing an urn that had failed to shuffle receipts adequately.

The Malta Gaming Authority announced a review in September 2022. It said recommendations had been discussed with the Finance Ministry and that existing procedures included safeguards intended to ensure the lottery was conducted fairly.

The revised regulations introduce changes to the draw schedule and set out procedures governing the handling of receipts and publication of results. Draws will take place on the 15th and 23rd of each month, moving to the next working day if either date falls on a weekend or public holiday.

Under the new rules, receipt bags must be placed in an urn in the presence of two public officers from the ministry before being sealed. Results must be published online, while prize cheques sent by registered mail must be cashed within six months.

The individual prize formula remains unchanged. Winners are entitled to 100 times the value of an eligible receipt, subject to a minimum prize of €233 and a maximum of €11,647.

The revised regulations replace those published in April 2019, which provided for one monthly draw and a prize fund of €58,234, subject to adjustment by the finance minister.

While the new rules set out the arrangements for the lottery’s operation, the ministry has not explained whether the changes are a direct response to the concerns raised over repeated wins or whether they follow further findings or recommendations arising from subsequent reviews.

The Shift has asked the ministry to clarify the reasons for the revision, confirm its implementation date and identify the first month of receipts to be covered by the new system. No reply had been received at the time of publication.