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The Global Lottery Market size is estimated to grow by USD 182.44 billion at a CAGR of 6.96% between 2023 and 2027.
Our report offers in-depth analysis of market drivers, trends, opportunities, challenges, and restraints, with segmentation by Platform (offline and online), Type (terminal-based games, scratch-off games, and sports lotteries) and Geography (North America, APAC, Europe, South America, and Middle East and Africa). Additionally, Technavio provides valuable insights through value chain analysis, parent market analysis, Porter’s Five analysis, vendor analysis, and COVID-19 impact data. The report also includes a thorough analysis of historical market data from 2017 to 2021.
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The increasing penetration of online lottery is a major driver boosting the market growth. The global lottery market is experiencing growth driven by the increasing use of online gaming platforms. This shift towards online platforms is influenced by the widespread availability of the Internet and smartphones, accompanied by improved Internet speeds. The digital transformation has reshaped the lottery market, emphasizing virtual lotteries through online platforms. Consumers can easily participate in lotteries through mobile apps and online platforms, with vendors leveraging advanced technologies like graphics and interactive bots to enhance the online lottery experience.
The adoption of online platforms is a strategic move to offer a better customer experience and tap into the growing smartphone usage. This trend is especially prominent in developing countries like India, where the online lottery market is expected to thrive, with an estimated 150 million real-money gamers by 2023. Additionally, online lotteries provide vendors the opportunity to cross-sell other products within their portfolios, further contributing to the positive impact of the digital revolution on the global lottery market in the forecast period.
The adoption of advanced technologies by lottery operators is one of the major lottery market trends. The global lottery market, primarily regulated and dominated by government entities, faces challenges in expansion. Vendors are adapting by exploring innovative approaches to engage customers, focusing on technology enhancements for offline lottery appeal. The increasing use of online platforms presents opportunities for vendors to shift towards more social and interactive gaming experiences, leveraging improvements in speed and graphics.
Technologies like VR and AI offer realistic gameplay experiences, and an omnichannel strategy becomes crucial for differentiation. Big data and IoT devices play a significant role, enabling operators to collect valuable customer data for trend analysis, demand forecasting, and targeted engagement strategies. The adoption of digital currency and IoT devices, as seen in China's lottery initiatives, creates growth prospects in the evolving global lottery market landscape.
The stringent regulations on lottery in various regions is a key challenge hindering the market growth. The lottery, a form of regulated gambling, is closely tied to social responsibility, ensuring proper allocation of revenue for public benefit. Typically, governments or government-licensed entities operate lotteries globally. In Austria, Casinos Austria holds exclusive rights until 2027, while several EU countries reserve lottery operations for monopoly operators. China, Taiwan, and Japan have sports betting monopolies, and most US states manage lotteries to raise revenue for specific public purposes. Even when licenses are granted to private firms, stringent contractual terms govern advertising, lottery procedures, prize awards, and frequency. Governments, due to high risk and socio-economic impact, regulate gambling, limiting market entry for private players and impacting growth.
The market share growth by the offline segment will be significant during the forecast period. The offline segment accounted for the largest share of the global market in 2021 and is expected to continue the same during the forecast period, owing to its global presence and high awareness among consumers. Factors supporting the growth of the market are the growing disposable income of people, which is aiding in increasing their spending on leisure activities, including lotteries, thus promoting the sales of lotteries from traditional ways. Moreover, the traditional purchase of lottery tickets ensures safety from online fraud and scams.
Lottery Market
By Platform
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The offline segment was valued at USD 350.74 billion in 2017 and continue to grow by 2021. Offline platforms include casinos as well as designated outlets, which are typically found in residential areas. To expand their reach, vendors are focusing on new sales strategies and expanding into the retail selling model by deploying slot machines and partnering with retail outlets such as supermarkets and convenience stores. This provides great convenience to consumers as well as increases the presence of vendors, which increases the chances of people buying lotteries. Moreover, casinos offer various discounts to attract customers, which also favors the growth of the offline segment. Furthermore, various governments are promoting the lottery as an activity that supports a good cause, which is also driving the demand for offline lotteries. Therefore, due to such factors, the offline segment is expected to expand during the forecast period.
APAC is estimated to contribute 36% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
Lottery Market
By APAC
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The North American market thrives on technology adoption, state gambling legalization trends, and eased regulations. Vendors expand through virtual lottery terminals and retail partnerships for increased profits. State-specific gambling laws, with around 48 states legalizing lotteries and more expected to follow suit, create growth potential. Economic upturn, rising disposable income, and a penchant for luxury purchases, like lottery tickets, contribute to regional market expansion.
Despite varying 2020 lottery venue sales due to the pandemic, recovery since 2021 benefits from eased lockdowns and vaccination drives. Opportunities emerge as vendors focus on new sales channels and retail expansion, requiring technology investments and appealing products. This strategic approach aims to enhance vendor presence, driving North American market growth in the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
The lottery market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Lottery Market Scope |
|
Report Coverage |
Details |
Page number |
157 |
Base year |
2022 |
Historic period |
2018 - 2022 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.96% |
Market growth 2023-2027 |
USD 182.44 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
6.56 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 36% |
Key countries |
US, China, Italy, France, and Spain |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Agento N.V, Arizona Lottery, Berjaya Corp. Berhad, Camelot UK Lotteries Ltd., China LotSynergy Holdings Ltd., Colorado Lottery, Florida Lottery, Gaming China, Georgia Lottery Corp., International Game Technology plc, INTRALOT SA, Jumbo Interactive Ltd., Lotto NZ, Maruhan Co. Ltd., New York State Gaming Commission, Scientific Games LLC, STRATACACHE, Tabcorp Holdings Ltd., The California State Lottery, and The Hong Kong Jockey Club |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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