October 14, 2024
WA.Technology receives accreditation to enter Peru’s gaming market
News
Read more...
May 31, 2024
Join WA.Technology as we explore lottery's tremendous growth and impact, from its inception centuries ago to its current digital rebirth. Discover why this under-appreciated vertical deserves the respect equal to sportsbook and casino and why it’s the jewel in the crown for many global iGaming markets.
Lotteries have been popular for centuries. Queen Elizabeth I drew up the first lottery in England in 1569, followed by the Million Lottery/English State Lottery in 1694. Lotteries are often state-run and used to raise funds for public services or good causes. In some locations, they are the only form of legal gambling. For a detailed exploration of lottery history, read our article An Evolutionary History of Gaming, Gambling & iGaming – Part 1.
Today's lottery industry continues to achieve notable growth, with a projected compound annual growth rate of 4.1% leading up to 2031, reaching a market size of US$ 529,004.24 million. This growth is evident across multiple markets, indicating a global appetite for lottery games.
Source: Business Research Insights
The potential for significant returns on minimal investments makes lotteries attractive to a broad demographic, including significant participation from women and the older generation, who typically don’t engage with online casinos or sportsbooks. With the growth of iGaming, lotteries can be played online, on mobile, or at retail outlets, meaning even those less au-faire with technology may buy a lottery ticket in the same draw as someone online.
The broadening of technology has enabled players to enjoy a much more extensive range of lottery options worldwide, shrinking the global expanse and opening doors to more opportunities and the chance to scoop jackpot prizes in larger lottery games covering more than one market.
In the US, lottery sales are around US$ 108 billion, a total higher than combined sales of concert and movie tickets. Canadians enjoy many lottery options, while South and Central America is home to many lottery players. Latam, in particular, is rapidly emerging as a substantial market for online lotteries, driven by increasing digital penetration. Mexico, Brazil, Chile, and Peru are countries to watch when it comes to lottery, with the vertical closing the gap behind other offerings. Source: A Game for Change
Many African nations, like South Africa and Nigeria, enjoy lottery games. Omnichannel platforms, such as WA.Africa, which combines mobile, retail, and online iGaming, work exceptionally well. Combining the physical and digital world, such as local promotions and links to land-based businesses, makes access to lotteries easier in a continent where technological availability can differ vastly from region to region. A recent IBM survey across 28 countries found that 27% of consumers overall and 36% of Gen Z use a combination of physical and digital channels in their gambling journeys.
Most European countries have a national lottery and access to global lotteries. According to the Gambling Commission, UK lottery ticket sales grew from April 2022 to March 2023. The National Lottery sales totalled £8.2 billion, an increase of 1.1% on the previous year and 3.5% on the equivalent pre-lockdown period. Funds raised for good causes reached £1.7 billion. During the same period, ticket sales across all lotteries totalled £943.9 million, an increase of 2.6% on the previous year and 13.5% on the equivalent pre-lockdown period, raising £421.7 million for good causes.
Numerous Asian and Oceanic markets, including South Korea, Macau, the Philippines, New Zealand, and Australia, have a culture of lottery games with a growing trend in lottery engagement across game types and digital integration.
While lotteries appeal more widely to the older generation than many other iGaming verticals, there has been a recent shift towards younger audiences like Gen Z, who are more actively engaging with lottery games.
In the recent A Game for Change report, data found that Gen Z audiences are drawn to brands that support sustainability and social causes. 69% of Gen Z say they would happily pay more to engage with a brand if it supported a worthy cause.
For the recent IGT publication, 5 Future Forward Trends Driving Lottery Growth A 2024 Special Report, When Gen Z players asked where to place themselves on a scale for the statement: “I try to make sustainable choices when I purchase products and services.” the results were as follows, with the vast majority opting for sustainable choices most of the time:
DESCRIBES ME VERY WELL
DOES NOT DESCRIBE ME AT ALL
Sustainability is a global movement. Brazil, a country in the spotlight for iGaming, is undergoing legislative changes, and the government is consciously trying to ensure that any future iGaming endeavours benefit the local communities. The Brazilian Senate committee recently approved a bill (PL 1,658/2023) to allocate 1% of federal lottery revenues to support small farmers through the National Land Credit Program, enhancing sustainable rural development. A worthy cause indeed.
Social gaming is also increasing, particularly with females and younger players. Research found players under 35 years old in Canada and the US were three times as likely to play games with friends than alone. When asked, 81% of Gen Z and 72% overall said sharing moments with friends creates enjoyment. Integrating lotteries with online groups creates a sense of community and shared excitement that savvy iGaming operators should note. Discover more about Women in iGaming in our blog.
Operators can also engage with groups by initiating collective lotteries, partnerships with specific groups or brands, affiliation with certain themes or causes, live streaming, and celebrity endorsements and collaborations, to name but a few. The key is to think creatively. What can an operator offer that is unique and appealing?
While not yet mainstream, the desire for virtual commodities is apparent. Loot boxes and subscriptions are more common in computer games than iGaming, but we may see a shift occur. A Voxburner survey found that 65% of US Gen Z had invested in virtual items in games, and 61% of UK gamers said their virtual appearance (gaming skins) was as important to their image as their real-life image.
Augmented reality (AR) and virtual reality (VR) gradually merge into broader areas of our lives. Some lotteries use QR codes and other methods to help players buy tickets. As technology develops, this lottery area will grow over the next decade.
Players are no longer happy to be spoon-fed; they want to get involved with brands, and engagement and awareness increase when brands involve their customers in decision-making. In the 2024 lottery trend report from IGT, 63.6% of Weekly Lottery Players selected ‘I would like it if my favourite brands asked for my ideas for new products’.
This marketing tactic has worked well for big companies such as Cadbury and Walkers Crisps in the UK, with competitions to choose new flavours and asking customers to vote for their favourites. In the US, Northstar New Jersey (NSNJ) manages Game Changers, a sales and marketing service for the New Jersey Lottery. The customer involvement strategy paid off in 2023 with the instant win game ‘The Jersey Debate’, where players were asked to respond to the official name of the Jersey breakfast sandwich. The game was an instant hit, with players animatedly discussing the potential new game name. By listening to customers and creating a sense of community, lottery operators can streamline their offerings by providing tailored content uniquely designed for their players.
Operators can engage with their players via exclusive lotteries, extra games, reward schemes, and personalised options. IGT also found that exclusive content and loyalty rewards attract new players, with 75.2% of people who play weekly lotteries enjoying exclusive benefits from their lottery operator.
Mobile gaming is expected to reach over $150 billion by 2030, and lotteries are increasingly accessible on smartphones, enhancing user convenience. Approximately 70% of online betting revenue is derived from mobile gaming. The recent expansion of mobile accessibility in regions such as Africa means a large influx of new potential players. If operators hoping to grow in these markets ensure their brands are readily available across devices and networks significant in these locations, they can expect big things.
The Internet of Things has made the world a much smaller place. Technologies that use artificial intelligence (AI) and Big Data are changing how lotteries interact with players, optimising user experience and ensuring responsible gaming. AI systems can gather and process vast amounts of data and enable processes that offer personalised journeys which are more enjoyable for players and profitable for operators.
Blockchain and cryptocurrencies offer enhanced security and efficiency in transactions, setting new standards for the transparency and reliability of lotteries. They can quickly speed up time-consuming processes that frustrate operators and players alike. While not standard across all iGaming, expect to see them more widely available soon.
Encompassing AI, Big Data, exclusivity, and perks, the gamification of iGaming works for players and affiliates. Personalising a player's experience will boost profits and player enjoyment. Fun in lottery games is boosted by features such as leagues, leaderboards, and tournaments alongside standard lottery games. Unusual lottery formats or lottery-style games give players something fresh and different to try. Unusual options increase interaction, like bonus balls, scratchcards, instant win games, quiz lotteries, or even sports lotteries (where players select which teams will win on a specific date).
Lottery operators must maintain responsible gaming practices, avoiding aggressive marketing, unwanted spam or popups, and promotions that target vulnerable groups. Working with a live streamer or social media influencer might be a good idea, but these methods involve huge risks that could potentially harm a business. Ensuring compliance with Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations is essential for sustaining trust and credibility. Options for players to set limits, such as time outs, wagering limits and so on, are preferable in many jurisdictions and the law in others. Ultimately, responsible gaming is good for business; operators don’t want to face a hefty fine, and players want to know that their money and personal details are secure.
Whether standalone or integrated, the online lottery sector presents lucrative opportunities for growth to boost established iGaming businesses or get new iGaming brands off to a flying start. Staying abreast of technological advances and demographic trends will be essential as the industry evolves for those seeking to explore this dynamic field. Partnering with an experienced provider like WA Lottery can provide the necessary edge.
WA.Technology offers a full spectrum of iGaming platform solutions for businesses looking to venture into or expand within the lottery industry. WA.Lottery’s integrated or standalone lottery solutions and managed services help operators capitalise on the expanding online lottery market by going live in less than six weeks.
WA.Lottery stands out by offering an extensive array of services that align with the latest trends in the lottery and iGaming industry, meeting and exceeding operator needs across the globe. WA.Lottery provides an end-to-end solution encompassing everything from traditional lotteries and sweepstakes to unique instant wins and scratchcards so operators can offer diverse gaming options to cater to various player preferences.
WA.Lottery offers over 70 of the world's leading jackpot games, with monthly prize draws exceeding $1 billion and insured solution jackpots up to €250 million. This enables operators to attract a significant audience and enhance market reach and revenue potential.
WA.Lottery has cutting-edge lottery management software that gives operators complete control over their operations. It is complemented by comprehensive analytics and reporting tools that allow operators to track performance and optimise their strategies based on real-time data, driving higher player engagement and loyalty. WA.Lottery’s ability to integrate advanced payment management systems supports various payment methods, caters to a global audience and ensures seamless transactions across different regions.
WA.Lottery maintains a pulse on industry trends with expert market specialists to provide a personalised and localised lottery experience that empowers operators to grow their lottery business swiftly and successfully. Don’t overlook the potential of this exciting iGaming vertical—contact WA.Lottery today to discover how your business can benefit from the thriving lottery market.
W.A Technology Group Limited
Registered address:
19-21 Circular Road, Douglas IM1 1AF, ISLE OF MAN.
Email address: hello@watechnology.com
.webp)
.webp){kind=logo}
.webp){kind=logo}
