Lotteries Set to Go Online

The worldwide market for lotteries is hugs and over 200 jurisdictions around the world have official lotteries. In 2009 industry experts say that total global lottery revenues totaled about $240 billion USD. In the US where most states have lotteries total sales amounted to $52.4 billion in 2009 and are expected to rise in 2010. Lotteries also spend a lot of money on marketing and spend about $5 billion annually on advertising and promotions around the world. Most lottery jurisdictions implemented lotteries to supplement tax revenues and in the US most states spend lottery revenues on education or social services. Many jurisdictions have come to rely on lottery funds to support various government functions. During the current global recession lotteries have provided governments with much needed funds to fill empty state coffers.

Lottery ticket sales have increased by a modest 2% a year compared with double digit growth for casino and online gambling. In the US legislation has been introduced that would re legalize online gambling and provide the government with another revenue stream. In the US gambling sites are incredibly popular including lottery sites. Should federal law be changed it will clear the way for online lottery ticket sales which at present are blocked by vague regulations regarding online gambling. Online marketers stand to benefit from changes in the law as lotteries spend millions to promote their games online.

Thanks to the recession lottery ticket sales have slowed but there are other factors contributing to the slowdown in lotto ticket sales. Offshore gambling sites are siphoning off revenue from lotteries as more Americans go online to gamble and play foreign lotteries. In addition most lotteries have not introduced new games in years and player boredom has contributed to a decline in ticket sales. Mega jackpot lotteries such as Powerball and Mega Millions spark player interest when jackpots reach hundreds of millions but for some reason many lottery players are not interested in everyday jackpots of $20-$30 million and ticket sales fall.

Lottery demographics show that most regular lotto players are aging and for some reason many state lotteries have not been able to attract a younger player base. Thanks to flagging many states have had to cut marketing budgets resulting in flagging ticket sales. Most lottery industry experts say that allowing state lottery ticket sales in the US would result in an increase in sales. In Europe and New Zealand online lottery ticket sales have been popular with players and most players say convenience is a major factor in online lotto ticket purchases.