Mobile the future for online lotteries

The respected analytical group Juniper Research has published the conclusions of its February study of the online lottery industry, predicting that mobile usage will open new business areas, resulting in online wagering rising from 2017’s $29 billion to $76 billion by 2022, when researchers claim that mobile devices will account for more than half of bets placed..

The study “Mobile & Online Gambling: Casinos, Lotteries, Betting & VR 2018-2022”, found that there will be a doubling of digital lottery users, from 317 million in 2018, to 624 million by 2022, driven largely by the Far East & China.

The researchers expect a considerable Chinese online lottery industry to re-emerge during the period, alongside the launch of a South Korean digital lottery this year.

Juniper believes that the US is on the cusp of a wave of legislation that will facilitate online gambling, following Pennsylvania’s landmark decision to allow such activities in October 2017. Researchers also identify New Jersey, New Hampshire, West Virginia, and Illinois as US states set to follow. For state-run lotteries, legalisation will likely allow online delivery, as well as pools between states, further driving participation.

Possible resistance to the scenario may come from traditional lottery providers, often monopolies in their home markets, facing increased competition.

Research author Lauren Foye explained:

“The rise of lottery betting providers will concern traditional players; Juniper calls attention to Lottoland, which saw revenues of $320 million in 2016. The company enables users to effectively ‘bet’ on a range of lotteries globally, users pay to enter and pick the required numbers. Whilst customers do not buy a physical ticket, Lottoland’s insurance model pays out on any wins, should they occur.”

Juniper found that these activities are a draw for consumers seeking better odds or jackpots from international games, and as such, advises traditional providers to re-evaluate prize structures and entry fees.