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How to Start Lottery Business: Top 8 Important Tips


Nevertheless, there are a lot of games in casinos, and a gaming site often requires cross-platform solutions, and lottery is only a single game. There is a lot of information about how to start lottery business on the Internet, but we will describe this process concisely and to the point.

The company Smart Money, which has been working in this field for a long time, is ready to give you clear recommendations and share some valuable guidelines. It can offer you to buy a turnkey lottery business, software for a lottery terminal or other lottery equipment.

Lotteries have always been an attractive product for residents of any country, because everyone wants to win if not a jackpot, then at least some pin money.

To win money in lotteries

Gambling gives people hope for prizes and motivates them to take part in the drawing. Although, the Russian law, for example, does not refer lottery business to a kind of entertainment that can cause addiction to gambling.

Today many entrepreneurs want to start lottery business, realizing that it is really profitable. Why do they think so?

  • The lottery business is permitted by administrative authorities.
  • You do not need big investments in order to launch lotteries.
  • Lottery equipment, according to statistics, can be paid off in a short period of time.
  • The lottery business can be promoted.

How to Start a Lottery Business: 7 Fundamental Steps

  1. Monitoring of the lottery market.
  2. Official registration of a company or a sole proprietor.
  3. Acquisition of a special license for lottery activities.
  4. Definition of the target audience.
  5. Drafting a business plan.
  6. Design and stamp of lottery tickets.
  7. Purchase of a lottery terminal, installation of lottery equipment and its launch.

1. Analysis of the lottery market

And now let us have a closer look at this issue. Currently, there are not so many lottery companies. According to experts, the niche is filled up to 15%. Therefore, you should find out who else deals with the lottery field is your region, then, you are to study the products of competitors, the cost of their lottery tickets and their methods of working. It also would be good to calculate the expected profits of these companies and draw the appropriate conclusions: maybe you should buy the same lottery equipment, but at the same time to design tickets differently.

2. Registration and acquisition of a license

As it was already mentioned, the lottery business is allowed in Russia, and there is no reason to worry about its legitimateness, so it's better not to waste time on doubts, but to start registering your company immediately. However, you should remember: the more consideration you show for the organization of your business, the less trouble you will have while you run it.

The future owner of the lottery business needs to file a request to the executive bodies with an application for the registration of a legal entity (if it has not been registered yet), and then to obtain a Tax I.D. If the legal entity has already been registered, you need to furnish a certificate from tax authorities that you do not have any tax arrears.

The next step will be an acquisition of a license for a lottery business, which will give you the right to install a lottery terminal, stamp lottery tickets and arrange drawings.

3. What is your target audience?

Make up your mind about who will participate in your lottery and buy its tickets. Usually, young and middle-aged people like to tempt fate. Pensioners are not very eager to pay for a piece of paper – they would better keep their savings in hiding places in their flats.

Active participants of lotteries are women: these daydreamers will do everything for the hope for a great wealth.

Therefore, when designing tickets, you can use more vivid, feminine colors, and place lottery points in large shopping centers or in markets.

Young people who do not have so much money can also take part in drawings, because they have ambitious plans for the future. Therefore, it is wise to place a lottery terminal in the entertainment center or in the club.

4. Organization of the lottery: a business plan

In the business plan it is necessary to take into account even the smallest detail, since your profits depend on its content. The first thing you should know is that the prize fund (from which the winnings are paid) should be equal to 50% of the total amount earned from the ticket sales.

Other positions are the following:

  • You will need about 5 thousand dollars for the purchase of lottery terminals.
  • Printing services will cost about 15% of revenues.
  • The designer, who has invented the design of tickets, needs to be paid the agreed amount of money.
  • Sellers of tickets take about 25% of revenues.
  • Rental payments for space for the lottery terminal will depend on the location.

Speaking about large lottery projects, with mass drawings and trivia games, these events need solid investment. In this case, experts advise businessmen to cut experienced people in on their lottery business, who will help them with lottery equipment and the organization of drawings. Partners will provide you with lottery terminals or qualitative lottery software, though they will need to be paid some interest on their services from your income.

Lottery equipment and software

5. What you need to know about lottery tickets

Lottery tickets can be printed or electronic (if you organize a lottery business on the Internet). In the later case you do not need to worry at all, because you do not need paper for e-tickets – only services of a designer and a programmer.

As for paper tickets, in such case the organization of the lottery involves several important details:

  • tickets must have watermarks and a background grid of fine lines;
  • microfont should be used on tickets;
  • on the ticket there should be indicated: its number, draw and amount of the prize fund.

Not every printing-office can take such an order, but only that, which has a license for printing products with protection. Pay attention to the brand of equipment on which your tickets will be made: in order to ensure that protection chars are flawless and are not subject to fakes, they should look like their mock-up. In addition, finished tickets must be registered, and it won’t be possible with poor-quality signs.

Besides the ticket number, draw and watermarks, you can put your company name and logo on the ticket, which will be an excellent advertisement for your business. The results of the draw must necessarily be published in the mass media. Experts say that the organization of the lottery will take about three months.

6. What you need to know about the lottery equipment

Lottery terminals, invented specifically for automatic lotteries, are officially recognized as automatic machines that do not cause any problem gambling, so the legislation does not prohibit them.

These machines are similar to bank terminals and have a touch panel. They automatically sell tickets and are able to pay out winnings. The advantages of a lottery terminal are obvious: it is small, it occupies about a square meter of the area and is equipped with the simplest interface.

The lottery software for terminals is created by professional developers who produce gambling equipment. According to experts, both lottery terminals and lottery software are better firstly to rent than to buy. The test period will show what kind of income you get from the lottery business, and whether it is worth buying the lottery equipment.

A lottery terminal must be made of the strong steel, especially the rack, which protects lottery software against damage.

7. Place of installation of the lottery equipment

The Lottery Law contains clauses that indicate possible places for the installation of lottery terminals.

The most profitable and successful locations are:

  • railway and bus stations;
  • large shopping centers and markets;
  • metro stations;
  • entertainment clubs and parks;
  • other crowded places.

According to gambling statistics, the lottery equipment pays off during a year or even earlier: it depends on where they are located and how the distributors worked. Do not forget such a factor as high-quality lottery software. We should also mention that the installation of these devices should be carried out by qualified specialists.

Electronic Lotteries

In order to launch an electronic lottery you will only need services of programmers and designers, since its place of the installation is the Internet, and the draws also take place there. You must admit that this type of the lottery business is the least expensive, because you do not have to pay for services of a printing-office, for paper, work of distributors and so on.

And here is the thing: users often buy tickets for the next draw right after they received money they have just won.

If you want to start lottery business, think of ways to promote it, because if you do not come up with new tips, players can get bored after a while. There is a way to upgrade the lottery software by introducing loyalty programs into it. For example, if a customer has registered on your website and immediately bought three tickets – pay him for mobile services. Or you can grant the prize to those users, who have bought several tickets in a row.

We have provided a somewhat example of loyalty programs, but here you can do whatever you want, according to your imagination! The organization of the lottery business is a very interesting and creative process.

When you will start making plans on how to start lottery business, remember that you can always find support from experienced partners, for example, the company Smart Money, whose representatives know everything about the lottery business. They will help you to buy lottery software, software for lottery terminals or a turnkey lottery business (which, by the way, will be faster and easier).

The lottery business is practically a free niche in the gambling market, which gives businessmen an opportunity to earn a powerful lot of money.

Try it, and everything will work out well!

Hans Adrian

B2b Gambling Business Advisor & Strategist


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