US Lottery Market by Type, and Platform - Forecast and Analysis 2023-2027

The lottery market in US is estimated to grow at a CAGR of 6.61% between 2022 and 2027. The size of the market is forecast to increase by USD 39.39 billion. The growth of the market depends on serval factors, including growing adoption of marketing strategies to increase ticket sales, high penetration of smartphones, and growing popularity of the lottery due to low adoption cost and easy availability. 

This report extensively covers market segmentation by type (scratch-off games, terminal-based games, and sports lotteries), and platform (traditional and online). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

What will be the size of the Lottery Market in US During the Forecast Period?

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Parent Market Analysis

Technavio categorizes the lottery market in US as a part of the global casinos and gaming market within the overall global hotels, restaurants, and leisure market. The parent global casinos and gaming market cover products and companies engaged in casinos and gambling facilities and operations.  Our research report has extensively covered external factors influencing the parent market growth during the forecast period.

Lottery Market in US: Key Drivers, Trends, Challenges, and Customer Landscape

The growing adoption of marketing strategies to increase ticket sales is notably driving market growth, although factors such as the socioeconomic impact of lotteries may impede market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage. 

Key Lottery Market in US Driver

The growing adoption of marketing strategies to increase ticket sales is notably driving market growth. Vendors are following integrated marketing communication and using newspapers, magazines, and social media such as YouTube and Facebook to sell their products. These communication channels play a key role in generating product awareness in the US. For instance, Georgia Lottery uses a classic billboard display with illuminated numbers to draw in consumers and encourage ticket sales.

Lottery companies, including large entertainment companies, are increasingly using social media platforms such as Facebook, Twitter, Pinterest, Instagram, and YouTube to promote lottery and create awareness and interest among consumers. Raising awareness and brand engagement are the major objectives and benefits of social media marketing and the promotion of the lottery. This is increasing the consumer base, which in turn, will drive the growth of the US lottery market during the forecast period.

Significant Lottery Market in US Trend

Technological advancements are an emerging trend in market growth. Rather than working in the usual manner, lottery businesses have begun to employ new client engagement tactics. As a result, they are looking for advanced technologies that can help traditional lotteries become more attractive to consumers. Using virtual reality (VR) and artificial intelligence (AI), vendors can provide a more realistic and omnichannel experience and observe consumers buying and playing patterns.

The emergence of big data and the increasing adoption of the Internet of Things (IoT) devices will create growth opportunities for the US lottery market. With the use of data analytics, operators can perform a comprehensive analysis of the lottery landscape. This data can be used to predict trends, forecast demand, target customers based on their habits and preferences, and determine the appropriate content to be showcased. Therefore, by leveraging technology in sales channels and other facets of the lottery business, vendors can increase their customer base and maintain a competitive advantage. Hence, such factors will drive the growth of the US lottery market during the forecast period.

Major Lottery Market in US Challenge

The socioeconomic impact of lotteries is a major challenge impeding market growth. Lottery impacts the social and economic environment of a country, which remains a major concern among authorities and the general public. The chances of winning an odd are lower as compared to the chances of winning, yet people are buying lotteries and losing money every year.

Lotteries can lead to addiction, loss of sleep, and depression due to high debt and bankruptcy, which can impact the social and economic environment of a country. People addicted to lotteries tend to spend well beyond their means. On average, gambling addicts have more than double the debt as compared to non-gambling households, and such effects can be seen across various states of the US. Moreover, with the growing popularity of lotteries, the crime rate is also increasing as people addicted to lotteries try to find ways to finance their addiction and end up committing crimes or illegal activities such as passing counterfeit money, theft, and fraud. These, in turn, will restrict the growth of the US lottery market during the forecast period.

Key Lottery Market In US Customer Landscape

The 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.

Global Lottery Market in US Customer Landscape

Who are the Major Lottery Market Vendors in the US?

Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Arizona Lottery - The company operates under one segment. The company under this segment focuses on developing and marketing games such as Instant Tabs. The key offerings of the company include lotteries such as Winning Numbers, Where To Play, and others. 

The report also includes detailed analyses of the competitive landscape of the market and information about 8 market vendors, including:

• Connecticut Lottery Corp.
• Florida Lottery
• International Game Technology plc
• New York State Gaming Commission
• Pennsylvania Lottery
• Pollard Banknote Ltd.
• Scientific Games LLC
• Texas Lottery Commission

Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.

What is the Fastest-Growing Segment in the Lottery Market in US?

The market share growth by the scratch-off games segment will be significant during the forecast period. Scratch-off games include the commonly known scratch cards, which are quick and easy to play. Owing to the low cost of scratch-off cards and the instant chances to win price, the popularity of scratch-off games is rising. Moreover, this type of lottery does not require any skills or calculations in order to win.

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The scratch-off games segment was valued at USD 43.98 billion in 2017 and continued to grow until 2021. In scratch-off games, the cost of a ticket ranges from USD 1 to as much as USD 50, and players can win prizes instantly by scratching the card of their choice. The chances of winning in scratch-off games are as high as 1:3, which makes these games more attractive to players. Moreover, scratch-off cards, which are sold at higher prices, offer higher prize money when compared with other lotteries, such as Powerball and other terminal-based lotteries. Thus, these are more lucrative for players and have high consumer retention as they are low-risk lotteries when compared to other lottery games. Vendors operating in this segment are increasing their market share by introducing more scratch-off games. Apart from vendors offering lottery tickets, vendors offering lottery equipment are also focusing on organic growth. For instance, in March 2021, Scientific Games LLC launched its SCiQ InLane technology for checkout line lottery sales in the US. Such developments are expected to drive the growth of the scratch-off games segment, which, in turn, is anticipated to propel the growth of the market during the forecast period.

Segment Overview

The 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. 

• Type Outlook (USD Billion, 2017 - 2027)
  • Scratch-off games
  • Terminal-based games
  • Sports lotteries

• Platform Outlook (USD Billion, 2017 - 2027)
  • Traditional
  • Online

Lottery Market In US Scope
Report Coverage	Details
Page number	115
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 6.61%
Market growth 2023-2027	USD 39.39 billion
Market structure	Concentrated
YoY growth 2022-2023(%)	5.96
Competitive landscape	Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks
Key companies profiled	Arizona Lottery, Connecticut Lottery Corp., Florida Lottery, International Game Technology plc, New York State Gaming Commission, Pennsylvania Lottery, Pollard Banknote Ltd., Scientific Games LLC, and Texas Lottery Commission
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, and Market condition analysis for the 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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What are the Key Data Covered in this Lottery Market in US In Country Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the lottery market in US between 2023 and 2027
• Precise estimation of the size of the lottery market in US size and its contribution to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the industry across the US
• A thorough analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive analysis of factors that will challenge the growth of the lottery market in US vendors

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