Tag Archives: lottery ticket sales
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.
Illinois to Offer Online Lottery Ticket Sales
Illinois to Offer Online Lottery Ticket Sales
A proposal in the Illinois legislature would allow the sale of Illinois state lotto tickets online. The proposal was spurred by lagging lottery ticket sales due to the economy. The move is expected to boost sales but there may be a catch.
Since its passage in 2006 using the most dishonest methods to insure passage, the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA) has had a lot of unintended consequences. In New Hampshire citizens buying state lotto tickets with a credit card at lotto terminals have found their transactions blocked by their banks due to the vague regulations set forth in the UIGEA.
Even though state lotteries are legal under the law many banks have shown that they will block any transactions they are unsure of. Enforcement of UIGEA was foisted on the banks with no government funding to compensate banks for their new law enforcement responsibilities.
Illinois Senate President, John Cullerton hopes that online lotto ticket sales will increase lottery revenues by as much as $300 million dollars. If financial institutions block transactions revenues will in all likelihood remain flat. The financial industry had predicted that the vague regulations would cause many problems and these are just beginning to surface. These predictions were ignored by the federal government which went ahead and passed UIGEA to pander to a tiny minority of anti gambling activists.
Hopefully the difficulties faced by New Hampshire and Illinois will prompt legislators to take another look at UIGEA. The law has caused many problems among them a dispute now in front of the World Trade Organization between Antigua and the United States and all indications are that the decision will be favorable to Antigua.
Should the Illinois lottery manage to solve the problems of online lottery ticket sales other states may follow and citizens will be able to enjoy the convenience of buying lottery tickets online. Several other states are thinking about allowing the sale of online lottery tickets. Many other states are trying to boost ticket sales and fill empty state coffers. Many states have been hard hit by the current recession and are trying to find original funding solutions.
The technology is already in place for the sale of online lottery tickets. Most players say they would welcome the ability to make an online lottery purchase from their home computers or cell phones. Players could also check state lottery websites for up to date lottery information and news. Several states may implement the sale of online lottery tickets as early as 2010.