Online lottery sector overview for 2021: Stats, key drivers, and more

The online lottery sector is often overlooked when we talk about online gambling and analyze the sector. But the truth is, it’s one of the biggest earners for operators. Accessible, lucrative, and cost-efficient, it’s continuing to grow in popularity. Whether you’re an established operator looking to branch out, or an entrepreneur wanting to invest, here’s a close look at the figures, projections, trends, and drivers right now.


Statistics from the online lottery sector

Lottery and similar products are legal in many countries, even those that haven’t legalized other forms of online gambling. The popularity of lotto has been increasing. It was around 2.3% in 2013 and rose to 4% in 2016, as per the EGBA.

In the UK, the lottery is big business. In 2019, 35% of gamblers participated in the National Lottery, 49.6% in other lotteries, and almost a quarter played bingo. These figures demonstrate that in the UK, lotteries and bingo are some of the most popular forms of gambling, with nearly half engaging in at least one form of lottery. In 2020, over a quarter engaged in a lottery at least once a month.

In terms of value, the online lottery is worth $2.3 billion to the US market, which in turn has almost a quarter of the global market share. Asia Pacific, Europe, and Canada are also leading markets for online lottery and games such as bingo and scratchers. 

Lotteries are worth almost $9 billion globally as of the end of 2020 and will surpass $14.5 billion in the next five years. When it comes to game types, draw-based games and scratchers are those that are demonstrating the most growth.


Key drivers of the online lottery sector

So what’s driving growth in the online lottery sector?

bullet Demand for entertainment

According to industry reports, entertainment is driving the increase in demand for online lottery products. More people are interested in the lottery, quiz-type lotteries, number games, and scratchers. One of the main selling points of lottery and similar is that they don’t require big wagers, yet the payouts can be lucrative. 

Furthermore, they are fast. The outcome is known just a few seconds after a wager is placed. This quick turnaround is exciting and highly entertaining for those looking for a source of entertainment. 

bullet Mobile usage

As with other forms of online gambling, increased mobile usage is a significant driver in the online lottery sector. The majority of adults now own a smartphone that can be connected to the internet and used to gamble. This proliferation of smartphone use is an excellent opportunity for the online gambling sector.

Progressive apps, gambling apps, and properly optimized websites make gambling on the go an easy and exciting experience. The use of smartphones and their increasing technological features will lead to more choosing to use them for gambling. It will also potentially encourage more to engage in lotteries, bingo, and similar, via their devices. For years to come, the use of smartphones will continue to drive forward all areas of online gambling, including lotto and bingo.

bullet Increased security

For many years, customers have been worried about banking security and general security while gambling online. This has led to many not gambling or shying away from gambling as often as they might want to. As a result, many operators have taken steps to increase security for their consumers. 

This includes high-grade encryption, two-factor authentication, partnering with trusted payment processors, biometrics, being transparent about adherence to laws like GDPR, and more. This means players are playing in a more secure environment, which in turn drove forward market growth.

bullet Increasing incomes

Despite the global economic downturn caused by the pandemic, households are generally getting more well off. Disposable income levels are increasing, and there are more dual-income households than ever before. This leads to consumers being more comfortable making bets and engaging in online lotteries. Again, because investment in such games is minimal, players are more likely to take a bet than with some other form of gambling.


Areas of interest for the online lottery sector

What are the key areas of interest for the online lottery sector? From crypto to AI, let’s explore.

bullet Digital currencies

Cryptocurrency’s use is well-established in the online gambling sector. But within the lotteries vertical, it’s particularly interesting. Asides from the fact cryptocurrency transactions are immutable and secure, they are also fast and cost-efficient to transact with. One of the features of crypto in the online lottery sector is that players can use it to make small bets. Crypto splits into smaller denominations that can be used to microbet.

bullet Streaming

High-speed internet has made streaming content an everyday part of our lives. As such, streaming has overtaken many other forms of entertainment. It’s also being integrated into other areas to boost consumer engagement. Movies, music, online gaming, and gambling are all using streaming technology to keep clients interested. 

The lotto sector is no exception. Users can stream lottery games, or players can gamble alongside content streamed by the operator. There’s also the chance to create Live Lotteries and bingo events whereby a real person streams the draw to players.

bullet Artificial intelligence

Those high up in the lotteries sector have long been talking about the use of AI in lottery. This has become even more important when we consider the growth of the online lottery sector. The key application of this technology is to make players’ online experience more exciting and entertaining. Operators should also use it to make it easier, smoother, and more secure. 

AI can be used to onboard clients, monitor behaviour and transactions, deal with questions and complaints, and analyze data collected on playing habits. This data can be harnessed in enhanced reporting and to customize players’ experiences.


Emerging jurisdictions

The online lottery sector is comprised of many local and international brands. Competition is high and healthy, and many have diverse portfolios. Europe holds a big share of the online lottery sector as demand shifts from land-based draw games to virtual ones. Lotteries offer a high return on low investment, therefore being attractive to more individuals. In addition to this, careful and thorough regulation of online lotteries throughout the EU has increased consumer trust.

Online betting and lotto will contribute $4.1 billion in 2026 in the Asia-Pacific region. Europe and Canada are also popular markets with a predicted CAGR of 8.2% and 7.2%, respectively, over the next few years. Within the borders of the EU, Germany will enjoy the most growth, due to its large population.

As with all other forms of online gambling, Latin America is of great interest to online gambling operators. This is because it remains a largely untapped market. Restrictions are being relaxed and new regulations are being created. This means the region is going. to be a hotbed of gambling activity in the years to come. Those that will benefit most are the ones who are ready to start exploring this region right now.


Contact Fast Offshore

Fast Offshore has been working in iGaming since regulators issued the first licenses back in 1996. Over the years, we’ve worked with a long list of clients who’ve gone on to launch some of the biggest names in online gambling. We offer a full portfolio of services to the gambling sector. From incorporation and licensing to banking, payments, and compliance, we have got you covered. But not only that, we are transparent, receptive, and ready to listen to your vision. Contact us today to realize your online lottery sector dream!

Contact Us

Follow us on Social Media!