Online Lottery Market Set to Hit $89 Billion by 2025
The global online market has grown by almost a third since 2016 and is set to hit US$89 billion by 2025 according to Online Gambling Market 2019-2025, a new report from Advance Research.
The online lottery market was worth $35.6 billion in 2016
The report shows that, from $35.6 billion in 2016, the global online lottery sector is now worth $46.7 billion. This growth has been driven by a mixture of national lottery games moving online and new entrants into the lotto betting and messenger markets, as well as the continued expansion of established private sector players.
After the rapidly expanding Asian market, where China continues to lead the way with double digit annual gains, the biggest catalyst for growth is expected to be newly-liberalised US market. In addition to the introduction of online sports betting, the 2018 Supreme Court ruling will also allow more state lotteries to market their games online for the first time. This is an area where American lottery operators have been severely disadvantaged until now, with only 15% offering online sales compared to 75% in Europe.
Only 15% of US lotteries offer online sales
It’s interesting to note that traditional national lottery ticket-based games are not the only growth area, with lotto betting and the new trend for numbers betting, based on the outcome of official lottery draws also catching on. This shows that the growth of online lotteries is not only being driven by existing players moving online, although that does account for a large percentage. Now variations on the traditional lottery game are also helping to attract younger players and a diverse gender mix.
Another driver of the online lottery market is expected to be crypto currency-based games, dominated by Blockchain. This will include a mix of games from existing online operators and standalone startups offering products with different characteristics and unique selling points. It will be interesting to see how national regulators, such as the UKGC, approach these operators and deal with licensing and taxation.
New players want more than a traditional lottery moved online
A final factor, and a key one if lotteries are to widen widen their audience and levels of participation, is the gamification of online lottery games. New players, and Millennials in particular, want to do more than simply pick their numbers and play one or two weekly draws. They want to feel part of the game, to share the experience and enjoy playing, as well as winning. That’s where numbers betting and other innovations will come into their own.
Given the exponential growth of online lottery since 2010, there is every reason to believe that the figures put forward in this report are realistic. They may even be on the conservative side. There is certainly potential for further proactive growth in the sector, with the US, Asia continuing to drive headline growth, while South America and Africa remain ripe for disruption.