Home Online lottery The California State Lottery Helps Steer the Trajectory of the Global Online Lottery Market

The California State Lottery Helps Steer the Trajectory of the Global Online Lottery Market

0

Recent market research by Technavio revealed that the California State Lottery remains one of the leading providers in the global lottery market. In its information on the top 20 vendors in the global lottery market, the California State Lottery was listed as one of six state lottery organizations in the United States, suggesting that the keno hall market and bingo across the Sunshine State is likely to remain strong.

Technavio forecasts a compound annual growth rate (CAGR) of 11.11% for the global online lottery market, driven by growth in several market segments. The report notes the rise of “terminal-based” lottery and “scratch-off” lottery or bingo games, as well as online gaming platforms in regulated jurisdictions. This is competitive with the UK, where online bingo and lottery type games are a huge generator for the wider UK iGaming industry.

Direct revenue generated by Britain’s bingo and lottery sub-sector was just under $1 billion in 2019 before the pandemic. Its licensed and regulated online operators are also leading the charge. UK examples like online bingo at Paddy Power lead the way in covering all the bases with American style 75, 80 and 90 ball action to appeal to a wide range of players. This is likely the path the US iGaming industry will take in the future.

California lottery and bingo operators must compete with instant games

One of the biggest challenges in the lottery market discovered by Technavio is competing with those online platforms that can provide on-demand play 24/7. Although more and more lottery and bingo players are looking to connect and play with reputable providers, land-based lottery sites must look to offer a new kind of gaming experience to differentiate themselves.

Scroll to continue

Instead of offering terminal-based instant games in bingo halls, where players will have to travel and venture outside of their comfort zone to enter, providers will need to consider offering enhanced social gaming experiences for players. Fostering interaction and engagement between groups will be essential, as it is the only advantage the land-based game will always have over its online counterpart.

In California, this may simply require the state lottery to alter its revenue distribution somewhat. In the latest figures from the California State Lottery, between 1985 and 2020, the State Lottery funded $37.6 billion for the state’s education sector, with $67.4 billion set aside for its prizes and $4.8 billion and an additional $2.4 billion earmarked for operating expenses and gaming costs, respectively. The organization may need to increase its gaming costs to entice more people to leave their homes to continue playing at bingo halls that have been dedicated communities for decades.

Where will most of the growth in the global lottery industry be generated?

In terms of regional highlights, the lottery and bingo industry appears to be the most mature in the Asia-Pacific (APAC) region. More than a third (36%) of global market growth between 2022 and 2026 is expected to be generated by APAC, with China identified as the hub country to lead the lottery market here. Market growth in APAC will be faster than growth in all other regions with regulated lottery markets.

sponsored post 200

In Asia-Pacific, the acceleration of growth would be largely due to the relaxation of government powers, as well as the increase in household disposable income.