The lottery market is a large global industry, generating substantial revenue. It is expected to grow at a CAGR of more than three percent from 2022 to 2031. The growth of the lottery industry is mainly driven by high levels of consumer disposable income and technological advancements. Several countries in Europe and APAC, such as China and South Africa, are major revenue generators. There are many small, medium and large-scale players operating in the lottery market. These companies are differentiated according to their products and strategies.
The Online Lottery market is segmented into different product types and regions. Global online lottery market is projected to reach USD 10 billion by 2023, expanding at an average annual rate of 8% through the forecast period. This market is projected to be divided into North America, Europe, Asia Pacific, and Rest of World.
Lottery is a form of gambling which involves paying a small amount to enter into a draw to win a prize. Unlike other forms of gambling, lottery involves a low-odds process where the winner is chosen at random. Typically, the lottery is operated by the state or federal government. The proceeds from the sale of lottery tickets are donated to charities and other non-profit organizations. Depending on the amount of revenue generated, the money is typically used for educational purposes, park services, medical treatment, and other public-sector expenses.
Lottery games offer big cash prizes to lucky winners. They are available in various formats, including Lotto, EuroJackpot, and Class Lotteries. Despite their popularity, the lottery has been criticized as an addictive form of gambling. Some governments have even banned the lottery.
In the United States, the state-run lottery draws are the most popular. However, the traditional lottery product sales have declined due to government regulations. Nevertheless, new lottery license approvals are likely to be issued in the coming two years. Moreover, there are several other government-endorsed lotteries in the U.S. Specifically, the National Basketball Association (NBA) holds a lottery for the 14 worst teams.
Online lotteries are becoming increasingly popular across the world. The proliferation of internet technology is fueling the expansion of the online lottery market. In addition, increased penetration of smartphones is driving demand for lotteries. Mobile payment methods will also become an integral part of the lottery business. Similarly, increasing numbers of dual-income households will drive the growth of the global online lottery market.
Several countries in APAC, such as Australia and Hong Kong, have established mass-gaming industries, resulting in high revenues for the lottery industry. The Chinese government, in particular, wants to consolidate its current lottery market. Hence, it is expected that the lottery industry in China will overtake the United States in 2015.
Among the major revenue generators in the global lottery market, the United States is the largest. In 2012, the United States generated $71 billion in revenues. Likewise, the country is expected to lead the global lottery market by 2031. Furthermore, the industry is expected to grow at a CAGR between 3.8 and 4.4 percent from 2022 to 2031.