Tag Archives: lotteries
Lotteries Set to Go Online
Lotteries Set to Go Online
The worldwide market for lotteries is hugs and over 200 jurisdictions around the world have official lotteries. In 2009 industry experts say that total global lottery revenues totaled about $240 billion USD. In the US where most states have lotteries total sales amounted to $52.4 billion in 2009 and are expected to rise in 2010. Lotteries also spend a lot of money on marketing and spend about $5 billion annually on advertising and promotions around the world. Most lottery jurisdictions implemented lotteries to supplement tax revenues and in the US most states spend lottery revenues on education or social services. Many jurisdictions have come to rely on lottery funds to support various government functions. During the current global recession lotteries have provided governments with much needed funds to fill empty state coffers.
Lottery ticket sales have increased by a modest 2% a year compared with double digit growth for casino and online gambling. In the US legislation has been introduced that would re legalize online gambling and provide the government with another revenue stream. In the US gambling sites are incredibly popular including lottery sites. Should federal law be changed it will clear the way for online lottery ticket sales which at present are blocked by vague regulations regarding online gambling. Online marketers stand to benefit from changes in the law as lotteries spend millions to promote their games online.
Thanks to the recession lottery ticket sales have slowed but there are other factors contributing to the slowdown in lotto ticket sales. Offshore gambling sites are siphoning off revenue from lotteries as more Americans go online to gamble and play foreign lotteries. In addition most lotteries have not introduced new games in years and player boredom has contributed to a decline in ticket sales. Mega jackpot lotteries such as Powerball and Mega Millions spark player interest when jackpots reach hundreds of millions but for some reason many lottery players are not interested in everyday jackpots of $20-$30 million and ticket sales fall.
Lottery demographics show that most regular lotto players are aging and for some reason many state lotteries have not been able to attract a younger player base. Thanks to flagging many states have had to cut marketing budgets resulting in flagging ticket sales. Most lottery industry experts say that allowing state lottery ticket sales in the US would result in an increase in sales. In Europe and New Zealand online lottery ticket sales have been popular with players and most players say convenience is a major factor in online lotto ticket purchases.
Gaming Giants Bidding For Illinois Lottery Contract
Gaming Giants Bidding For Illinois Lottery Contract
Four huge gaming firms are bidding on the Illinois lottery contract and two of these gaming giants have teamed up to bid on the 10 year contract. Both firms, GTECH Corp. and Scientific Games Inc., have had contracts for instant lotto tickets and lottery equipment since 1989. GTECH, which is based in Rhode Island has been a major player in the gaming industry and is a subsidiary of Lottomatica which is the world’s largest lottery operator. According to GTECH , both companies control 63% of all lotteries around the world giving both companies extensive experience in operating lotteries.
GTECH currently provides Illinois with lottery terminals and ticket dispensers at lottery retailers throughout Illinois and also provides the central gaming system computer that operates the terminals. Last year the Illinois legislature indicated they wanted to move the state lottery towards private management. Lawmakers hope private management will boost sales by an additional $150 million which would be used to fund infrastructure projects. Illinois lottery revenues have remained steady at about $2 billion dollars a year. Illinois had considered total privatization of the lottery until the Justice Department ruled that states cannot relinquish control of lotteries.
Other gaming giants bidding on the Illinois contract include Camelot from the UK. Camelot has extensive experience running the UK National Lottery. Intralot S.A., based in Greece, is also expected to bid. Illinois is also considering online lottery ticket sales and most of the firms bidding on the Illinois lottery contract have experience providing online lotto ticket sales. At the present time confusing federal regulations regarding online gambling are preventing several states from implementing online lottery ticket sales. Thanks to a new bill introduced in congress all that may change in the very near future.
If the regulations are changed and Illinois is successful in implementing online lottery ticket sales most states are expected to follow. Most players say they would purchase lottery tickets online citing convenience as the main reason for online purchases. Players would no longer have to make a trip to a lottery retailer and stand in long lines to buy lotto tickets. Most states with lotteries already have lottery websites and it would be very easy to add online ticket sales. The technology and software for online ticket sales are readily available and most of the firms bidding on the Illinois contract are ready to launch online ticket sales. It will be very interesting to see the results of the bidding war.