Jackpot dreams: PAS wonders if Sports Toto's record profits signal desperation

Summary

• Fadhli questions whether people are spending more on gambling because they are getting richer or relying on luck.

• PAS leader states that numerous academic studies show gambling typically spikes during times of economic and financial stress.

PAS information chief Ahmad Fadhli Shaari is sounding the alarm over Sports Toto’s skyrocketing profits, raising not only social and moral concerns but also questioning whether this surge signals growing desperation amid a struggling economy.

He pointed to the company’s own statement, which credits the earnings boost to the strong performance of STM Lottery Sdn Bhd.

The company reported higher revenue, fuelled by “an exceptional surge in the accumulated jackpot from Supreme Toto 6/58”.

“But the question is, what drives this interest among consumers? Are people truly spending more because they are getting wealthier, or because they are increasingly desperate and relying on luck?” he asked, according to Harakah Online.

Fadhli highlighted that numerous academic studies show gambling participation typically spikes during times of economic and financial stress.

He said the company’s staggering 54.3 percent jump in third-quarter net profit to RM105.6 million and total revenue hitting RM1.9 billion should ring alarm bells for policymakers and civil society alike.

“In an economic climate still plagued by global uncertainty, inflationary pressures, and weakened purchasing power, the fact that a gambling company can record RM1.9 billion in revenue in just one quarter is not a success story.

“Instead, it signals a serious social and moral crisis that must be taken seriously,” Fadhli emphasised.

‘Buying hope’

He cited the study by Grinols and Mustard (2006), titled “Casinos, Crime, and Community Costs”, which links the presence of casinos and gambling to rising crime rates and net economic losses to local communities due to escalating social and criminal costs.

“A study by Walker and Barnett (1999), titled ‘The Social Costs of Gambling: An Economic Perspective’, found that lower-income groups are more likely to engage in gambling, exposing them to higher financial and social risks when they lose.

“In other words, gambling is no longer just a recreational activity, but a symbol of desperation. This phenomenon is known as ‘hope spending’, where those who feel lost and deprived of income try to ‘buy hope’ through gambling,” he explained.

Fadhli also voiced concerns over the erosion of moral and ethical values amid the rising gambling culture.

“When gambling becomes a ‘hope’, then hard work, effort, and trust in God are replaced with empty dreams and a one-in-a-million chance.

“While legal gambling outlets are being closed in Kedah and Perlis, the company also expressed concern over the rise in illegal gambling activities.

“(But clearly) this shows that the demand for gambling remains high, even in unregulated forms,” added the Pasir Mas MP.

Adding to the irony, Fadhli pointed out that while citizens complain about soaring living costs and shrinking subsidies, with increasing applications for zakat and welfare assistance, a gambling company still manages to announce RM80.3 million in dividends to shareholders.

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