Online Lottery Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Online Lottery Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The global online lottery market is projected to grow at a CAGR of 0.42% during the forecast period (2022-2027).

The COVID-19 pandemic had a negative impact on growth of the online market for a temporary period, which was off-set by the rise thereafter. Due to government regulations, when people were stuck at home, the demand for online lottery increased further. Whereas, the pandemic gave scope for a rise in cyber crime through online lottery. In 2021, World Health Organization (WHO), made the individuals aware of a scam, falsely acting under the name of Capital Finance Inc, London, fraudulently spreading the news of COVID-19 Lottery Compensation Prize being distributed by World Health Organization.

The increasing popularity of lottery has created a whole different category of gaming on the internet. The shift in demand from the traditional draw-based games to the virtual ones is escalating the growth of online lottery market. Additionally, lottery offers a good amount of return on comparatively low investment, which attracts the customers for investing and plaing the games online. Moreover, the widely used promotional strategy for lottery companies is attracting a huge customer base through social media. Companies focus on posting the winning prizes in social media, thereby enhancing the lottery sales.

The increased penetration of smartphones is giving rise to a number of mobile application-based lottery games. The end users have the convenience and comfort of gambling within the comfort of their own space, which is one of the major drivers of the segment. In order to increase the number of downloads for these mobile applications and create an upsurge in the number of footfalls in website, companies are engaged in enhancing their graphical user interface. However, the market growth can be hindered due to the growing concern of cyber crime.

The increasing acceptance and popularity of the lottery, in general, has resulted in the creation of a whole different form of gaming on the internet. The upsurge in consumer choice for online lottery is being supported by faster internet connectivity and increased number of internet users, which permits operators to stream various events from around the world, allowing the consumers to bet on. The growth opportunity for lottery operators through online channel forced the online vendors to improve betting processes, in terms of security and reliability, which, in turn, propelled the popularity of online lottery across the world. Additionally, for a long time, consumers were concerned about banking security while conducting any kind of transaction over the internet. However, advances in both online encryption and banking technology helped in resolving this concern, resulting in the consumers playing online securely and, in turn, driving the market studied. Additionally, auditing companies like eCommerce and Online Gaming Regulation (eCOGA), ensures that random number generator (RNG) software is truly random, while evaluating the security methods of storing players' deposits.

The shift in demand from traditional modes of physical draw-based games to the virtual ones is augmenting the growth of the European online lottery market. The market has stringent rules regarding online lottery and gambling which heps the individuals stay secured while playing lottery games and transacting online. Germany is one of the most strictly regulated markets in Europe. In accordance with this, the Interstate Gambling Treaty was introduced in 2012, which tightened up the regulations for Germany online gambling industry. According to Camelot Group, the Camelot United Kingdom Lotteries Limited announced National Lottery sales of EUR 8373.9 millions for financial year 2020-21. The inclination of participants towards online lottery has led to an increase in lottery sales, indicating towards strong internet penetration and improved betting process in terms of security and reliability, boosting the growth of the market. The growing popularity of draw-based and scratch-based instant games can be seen across the European countries, adding up the surging market growth.

The global online lottery market is highly competitive with the involvement of numerous local and international players. The market is fragmented because of the diversified presence of these players geographically. There are strong competitors in the market with diversified portfolios, leading to an intense competition among the existing players. Key players, like Lotto Agent, Lotto Direct Limited, Camelot Group, Zeal Network, and Francaise des Jeux, are focusing on optimizing their offerings, along with geographical expansion. Companies are expanding their investment in research and development to develop user-friendly online games, along with expanding their gaming portfolio with mergers and aquisitions. These players are also focused towards strategic partnership to enhance their future market growth opportunities.

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