Online Lotto Drives Growth for Pennsylvania Lottery
As the online gambling market in the United States begins to open up, growth of the official Pennsylvania state lottery is being drive by internet sales.
Online lottery sales have been a big hit in Pennsylvania
Online lottery sales accounted for $381 million of the $4.6 billion in total sales generated by the Pennsylvania Lottery, which generated profits of $1.14 billion for the year, of which $31 million came from online sales.
Despite the rapid rise in online sales, scratchcards continue to account for almost two-thirds of overall lottery sales, which rose by six percent to $2.9 billion.
The jump from zero online sales to 8.26 percent for online lotto sales clearly shows that there is demand for online lottery in the US market, with further growth predicted as web-based lottery sales are more widely promoted. Following the legalisation of online sports betting in 2018, it is likely that all forms of internet gambling will experience enhance growth.
Casino operators were opposed to online lottery sales
The introduction of online lottery sales in Pennsylvania was not without hiccups, as the state’s casinos filed a lawsuit against the offering of online scratchcards and instant win games, which was thrown out by the state courts in July.
Other states offering online lottery sales, include Kentucky, which has offered its official state lottery online since 2016. In the last financial year, sales hit $26.8 million, double the amount of the previous year, with overall sales up 8.3% to a record $1.13 billion.
Online revenues are complementing offline growth
The fact that US state lotteries are growing overall revenue in line with the rise of online lottery is proof that internet sales are not cannibalising ticket sales from bricks and mortar retailers, as some who opposed online sales had feared.
With more states expected to join the online lotto revolution over the next 12 months, it will be interesting to see if growth accelerates further and how online lottery sales are affected by the launch of internet sports gambling state by state.