The global lottery market is projected to grow 6.96% between 2022 and 2027, with its size expected to grow by USD 182.44 billion. This substantial growth is attributed to several factors such as the rising popularity of online lottery, low-cost adoption and easy availability, and the use of social media marketing for lottery promotion.
Digital Revolution Fuelling Growth
The online lottery market is experiencing remarkable growth, primarily driven by the increasing penetration of the internet and smartphones. This shift follows more general iGaming trends in 2023, which have seen mobile and watch gaming rise.
the extended digitalisation of the lottery is transforming the global market, with a shift towards online platforms. The ease of access to the internet enables consumers to participate in lotteries effortlessly. Vendors are also utilising advanced technologies like crypto and web3 lotteries to push the boundaries of traditional approaches and get more players on board.
Lottery for Good Causes
A notable trend in the lottery market is the increasing use of lottery money for good causes. Governments across the globe are actively promoting lotteries, as they generate significant revenue. The revenue generated from lotteries is utilised for building public facilities and funding educational programs, which contributes to the global market’s growth during the forecast period. Players seem to be more willing to participate in a lottery when the profits go to a good cause.
Socio-economic Impact: A Major Challenge
The lottery’s socio-economic impact is a significant challenge that may hamper the market growth. Lottery addiction can lead to social stigma, and ultimately affect the social and economic landscape of a country.
This is part of a broader problem related to gambling addiction, that many governments and vendors are trying to solve by promoting responsible gaming. Despite the current problems, the market growth, connected to broader access thanks to digitalisation seems unstoppable. We have seen how the lottery market in China has registered huge numbers in 2022 and is expected to grow even further in the next 5 years, reaching the size of $3.67 billion. The same trends are observed in other big countries like the US and India.
Opportunities and challenges
The adoption of technology and digital platforms, along with the legalisation of various forms of gambling, are the main drivers of the North American market. The relaxation of regulations in this region creates a favourable environment for the lottery market.
Vendors are also expanding their sales channels by deploying more virtual lottery terminals and partnering with retailers to increase their profits. As more states in the US legalise lotteries, there is immense scope for growth in the region.