From buying lottery tickets to playing lottery games on mobile phones, the way of playing the lottery has transformed drastically over the past few decades. Today, the majority of players are inclined towards the online lottery system. They can play a variety of lottery games on a single platform online, from the comfort of their home. Besides this convenience, improved transparency and fairness are the major reasons behind increasing traction for the online lottery system. Players find it more reliable and profitable to invest in online lottery games than the transitional system.
With the increasing use of smartphones and the Internet, the online lottery system will grow more in upcoming years. This means, investing in this area will be a lucrative decision for existing operators and entrepreneurs looking for new business ideas. Do you also think the same? Do you want to start an online lottery business? If yes, you are on the track.
But, where to start from? What are the essential components to start a lottery business online? How can I be successful in this business?
A lot of such questions might be a hindrance to your business idea. We understand your questions and your concerns precisely. Therefore, we have created a detailed guide to starting an online business that will solve most of your doubts and simplify your future journey. In this blog, we have included all the crucial aspects related to the online lottery business with the help of our experts in this niche.
Before we start with this, let’s know more about the scope of this industry.
Online Lottery Industry Stats and Facts
- The global online lottery market size is expected to be $14.5 Billion by 2026.
- During the COVID-19 pandemic, the global Online Lottery market is estimated at 7.1 Billion USD in 2020. And it is expected to grow to a revised size of 11.1 Billion USD at a CAGR of between 2020-2027.
- The segment “online draw-based lottery games” is predicted to reach US$5.3 Billion growing at a 6.6% CAGR by the end of the forecast period 2020-2027.
- In 2020, the U.S’ s online Lottery market is valued at USD 2 Billion. The country currently holds a 28.89% share in the global online lottery market.
This clearly states that the online lottery industry growth is unstoppable. Still not sure about your decision to enter this market? Let’s check some major reasons for investing in this ever-green digital market.
Key Reasons to Invest in Online Lottery Business
There are a number of reasons that convey many investors and operators to invest in the online lottery industry.
Easy Inventory Management
Inventory management is one of the tedious business operations. Because of scaling, inventory problems turn to be hassled in certain stages in the traditional lottery system. However, online lottery platforms make inventory operations away easier. They offer advanced inventory management tools that ease up operators’ tasks.
Scalability is an important factor for the success of any business including online gambling. Online lottery platforms offer the advantage of seamless scalability. They are capable of handling an increased number of users without halting the operations. Your online platform will support your growing business and help you generate a good deal of revenue.
Apart from inventory, online lottery systems ease up management of all the other aspects such as agent networks, distributors, customers, winnings, and more.
Credibility and Transparency
Compared to the traditional lottery, online lottery systems offer a more transparent and secure environment to the player, which helps operators win their trust. Online Lottery software providers integrate robust security features into the platform that increases your business credibility and helps you acquire more players.
A Guide to Start Online Lottery Business Successfully
Till now, you must have got confident about your decision to start a business in this niche. It is time to start working on your idea. Here are a few crucial steps you must follow to open an online lottery business.
Study The Market Thoroughly
Before you invest in any new market segment, you must know what you’re getting into. As a potential online lottery platform owner, you must know the driving force behind the online lottery industry, main competitors, target audience, latest trends, and more other aspects. Taken as a whole, you need to research the online lottery market thoroughly and study various aspects. Understand what type of games competitors are offering and what are their player retention strategies. Also, you have to identify what are the player’s expectations and demands that are not being fulfilled by existing platforms.
This research data will help you launch an advanced and more powerful online lottery platform that matches players’ expectations and growing market standards.
Prepare a Business Plan
Once you have adequate research data ready, you have to draft an actionable business plan. A precise business plan will include strategies that will help you ensure the perfect management of your online lottery business. Your business plan must include all the crucial points, such as:
- How to get start-up capital?
- Who are your potential customers? What is their age, location, gender, and preferences?
- How will you attract customers to your online lottery platform?
- Identifying the jurisdictions or local lottery sector you want to launch the lottery platform in, including competitors’ information.
- Deciding a company name and ensuring the availability of the domain and social media handles.
- A comprehensive description of your platform including the technical details.
- How will you market and promote your online lottery business?
- Determining the financial expenses and creating a financial projection for the next few years.
Select the Right Niche
If you are planning to launch a specialized lottery platform, you first need to decide your niche. You can choose from various niches such as scratch tickets, draw lotteries, Bingo, Lotto, sports betting, Keno, or VTL.
Get Certificate and License
As Lottery falls into the gambling category, you require license and certificates to start and operate an online lottery business. First, choose the right jurisdictions by considering the application process, licensing cost, and other aspects. You can choose from popular lotto jurisdictions like Curacao, Malta, Kahnawake, and more. After deciding the jurisdictions, you have to apply for the license along with the application form, your business plan, KYC documents, and due diligence. Different jurisdictions may have different requirements for documents.
Choose the Precise Lottery Software Development Solution
Software is a crucial aspect of the online lottery business. Therefore, you must also emphasize choosing the best lottery software solution considering your business goals, budget, time availability, and other factors. Here are three major options you can choose from.
Custom Online Lottery Software Development
If you have sufficient time and budget and want your online platform to be unique, you can consider going with the custom development option. You can develop an online lottery software from scratch according to your specific requirements and business goals. This will help you outperform the competition and attract potential customers easily.
White Label Lottery Software Solution
If you want to launch an online lottery platform within a matter of days, a white-label software solution will be your best bet. With a white-label solution, you get ready-to-launch software that comes with in-built features. Many lottery software development companies also offer on-demand customization flexibility.
Lottery Mobile App Development
If you are planning to launch only a lottery mobile app or want to target mobile players as well, then you must invest in mobile app development. As the number of smartphone users grows exponentially, the demand for gaming applications is also increasing. Therefore, creating an engaging lottery app will prove to be profitable for your business.
Choose the Best Development Partner
Now that you have decided on the development solution you want, find the best development partner who can provide you with the same. You need to find the most reliable lottery software development company that can meet and exceed your requirements precisely. Consider the below checklist to find an ideal company for your lottery software requirement.
- Proven and adequate experience in the iGaming software industry
- The in-house team of professionals including designers, developers, project managers, and QA engineers.
- Licensing and compliance
- Support and maintenance policy
- Cost-effective and advanced solutions
- Advanced technology integrations
- Customization flexibility
- Work transparency
- Security and confidentiality
- Genuine and excellent reviews
- Powerful case study
Emphasize Marketing and Promotion
Once you launch your online lottery platform and start a business, you must focus on creating and implementing effective digital marketing strategies. Consider implementing powerful strategies like SEO, Email marketing, PPC, blogging, bonuses, rewards, etc. to improve traffic and conversion rate, build a powerful presence, and generate maximum revenue. If you don’t have enough time to focus on the marketing part or manage the marketing team, then it is advisable to seek assistance from a reliable marketing agency.
Ready to Kick-start Your Online Lottery Business? Betfoc is All Set to Assist You Further
This blog might have cleared most of your doubts and inspired you to start your business ASAP. Still, if you encounter any difficulties or doubts in your journey, Betfoc is here to assist you. We are a leading iGaming software development company providing a range of solutions including online lottery software development. We offer custom, white-label as well as mobile app development solutions that help clients attain their business objectives.