Online lottery wagers to more than double, reaching $76bn by 2022, says Juniper Research
A new study from Juniper Research has found that online lotteries will be disrupted by the opening up of markets coupled with a drive towards mobile offerings. Wagers placed on online lotteries will increase from $29 billion (€23.48 billion) in 2017, to $76 billion (€61.53 billion) by 2022 with mobile devices accounting for more than half of this by 2022.
New markets emerge
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 research anticipates that the considerable Chinese online lottery industry will re-emerge during the period, alongside the launch of a South Korean digital lottery this year.
Western markets face disruption too. 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. Juniper also identifies New Jersey, New Hampshire, West Virginia, and Illinois as those set to follow. For state-run lotteries, legalisation will likely allow online delivery, as well as pools between states, further driving participation.
Disruptors challenge traditional players
However, the research found constraints, with traditional lottery providers, often monopolies in their home markets, now 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 (€259.06 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.
Juniper Research provides research and analytical services to the global hi-tech communications sector, providing consultancy, analyst reports and industry commentary.
Comment on this article below or via Twitter @IoTGN