Many people say that they do not like to gamble but are still playing lottery games on a regular basis. Most market participants do not see the lottery industry as part of the casino market. However, this business is increasingly approaching the level of the online gambling field.
Lotteries are one of the most promising and profitable segments of the industry. Already in 2018, the volume of the global market reached 250 billion euros, and by the end of 2020, more than half of the revenues of the entire gambling business were accounted for by lottery operators.
Most of the profit came from Europe and Western European regions:
According to the forecasts of the Technavio independent research agency, the volume of the global lottery market will continue to grow. Experts believe that an average annual rate will reach 10%.
It is worth noting that the COVID-19 pandemic does not have a significant impact on the market. Yes, land-based establishments were forced to temporarily stop working but operators quickly realised the advantages of online drawings and decided to switch to the digital environment.
Lottery ticket providers are not only moving their capacities to the online segment but are also following the most significant trends in the IT industry. For example, since 2019, one of the largest Chinese operators, 500.com Limited, has launched a large-scale redirecting program for sales markets and started bitcoin-mining.
The established opinion that a lottery ticket has nothing to do with slot games was formed mostly thanks to national operators controlled by state monopolies.
Most governments use the profit of the lottery business to spend more on sports, culture, and education. Accordingly, lotteries may come off as a form of charity in such regions as:
Compared to national lottery monopolies, the gambling business is considered a relatively young niche that simply did not have time to gain a positive reputation.
At the same time, the casino market is also actively involved in charity work. But this information is not advertised as widely as in the lottery industry.
Examples of large-scale charity:
According to independent international analysts, public opinion regarding lotteries will not change in the next couple of years.
Gambling operators cannot yet compete in terms of information of the public since they have several limitations because of the ban on advertising their projects. They just have to adhere to the chosen tactics and show customers maximum exposure and security.
Europe is considered the most interesting market in terms of legal regulation and state monopolies.
Following the precedent of 2011 when a Maltese provider joined issues with the French government on the right to offer bets on horse racing on the country's domestic market, the European Court of Justice declared the state lottery monopolies a legal exclusion from the free gambling industry.
According to the judicial instance, such a decision will allow national providers to control the niche more effectively and fight against such social problems as tax evasion and money laundering.
Over the years, this way of thinking has become even more common. National governments are not ready to stop controlling domestic lottery markets, although private and offshore projects are still trying to change the situation.
Lottery monopolies in different parts of the world
In 2020, the government began to actively control not only traditional but also online drawings. This decision was made in order to combat the shadow money turnover of individual market representatives
Lotteries, bingo, poker, and casino games are controlled by the local regulator — Casinos Austria. The licence issued by this organisation is valid until 2027 but the local Betting and Gambling Association has proposed to switch over to a new certification system. Negotiations are currently in progress
There are private operators in the country but they are obliged to distribute their services only through the state monopoly. Thus, the government protects customers against fraudsters and uses budget funds to meet social needs
Operators of the state lottery decided to support the development of online gaming systems and grant permits for selling tickets in 10 states.
The Spinola Gaming corporation helped to digitise the lottery system of the local monopoly
In 2019, the government announced that secondary participants can enter the market but this decision raised an objection of the former monopolist.
According to the Sweden lottery organisation, private enterprises deliberately diminish revenues, and their work may lead to the growth of the shadow economy
Those who want private entrepreneurs to enter the market believe that the need for monopolies is exaggerated.
If customers can get a wider range of services at affordable prices, the market will only benefit from healthy competition. And taxes paid to the public treasury can also be spent on social needs. In this case, there will be no need for the compulsory nature of charity.
After the lottery business was transferred into the digital format, it has received more new opportunities for the attraction and retention of the audience than in the land-based segment.
If earlier users had to wait for the weekly drawing, now, they can buy a ticket at any time. Moreover, customers are offered:
In the online format, users can get new experiences, good prizes, round-the-clock access to entertainment, and a wide variety of products.
The lottery is quickly transforming into the format of a casino game. The most popular thematic solutions are:
The release of 2020 transformed the standard bingo drawing into a fun, dynamic TV show. Broadcasts are available at any time of the day and please users with their visual appeal.
The developer also offers several bonuses that are typical for slot machines. For example, multipliers and free moves (customers are provided with the ability to cross out a few extra balls or buy a new ticket).
This is a unique solution in the live format. The provider's project combines live broadcasts of the drawings, traditional lottery rules, and sports betting.
Gamblers are offered a series of bets on the outcome of the drawing in real-time. Moreover, there are several coefficients, tables of probabilities, and even templates for the most effective gaming strategies.
Casino operators and bookmakers have 2 options:
According to the forecasts of Global Industry Analysts Inc., the average annual growth of the market will reach 8.7% by 2026. Growth rates in some regions may differ but such differences will be really small.
The expected growth rates for the lottery markets in 2021–2026:
In addition to the global growth in the volume of the lottery industry, there are some more trends:
About half of the income of the entire gambling industry is accounted for by the lottery business. This is one of the most promising investment areas in recent years.
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