IN-DEPTH 11 July 2016
Lottery: A young market is coming of age
Lottery is still relatively new to the i-gaming market, but 2016 is the year it makes big strides in a hurry says Lottotech’s Head of Product Alexander Dimitrov
By Gambling Insider
What are the major similarities between lottery platform development and other forms of i-gaming? And what are the main differences?
The major similarity is the sense of thrill and excitement we give to players. However, unlike other forms of i-gaming, in online lottery they get much more of these, as one stroke of luck can change their lives forever.
In addition, lottery platform development opens new horizons in terms of product accessibility and engagement. Players can access lotteries from all over the world with a single click, without even leaving their homes. What is more, they can enjoy a personalised gaming experience through a variety of playing options such as group and combo deals, subscriptions, multi-draws, fun widgets and special features, etc.
The differences are in the product’s nature and the approach to the player. Lottery is hugely popular as compared to other forms of gambling. Between 60% and 80% of the world’s adult population enjoy lottery games.
In the context of digital channels, this means that the whole approach towards the end user is different – we are not targeting gamblers with the hope that they will come and lose their money with us. Quite the opposite − we want to give everyone the chance to buy big dreams for a very small amount of money. In effect, the more our players win, the stronger our business grows.
What are currently the key issues in the lottery market that companies such as Lottotech are trying to tackle? And how have those issues changed since Lottotech first launched?
Lottery is still a relative newcomer to the i-gaming market, so the biggest issue is a general sense of unfamiliarity and insecurity among players. Fortunately, as a growing number of big and recognisable companies are now entering the market, players are starting to gain more trust in the product.
The other big issue is, of course, regulation. The online lottery sector still doesn’t enjoy the fully regulated status of other forms of i-gaming. Again, as the market is expanding, jurisdictions start to notice and take concrete steps and actions.
We are very excited about this progress, because a regulated online lottery market will open new opportunities for both platform providers and operators.
What is Lottotech's USP in the market?
Lottotech’s USP lies in the deep understanding of our customers’ needs on one hand, and of the end user experience on the other. Operators need freedom and flexibility to maximise their business potential, while accessibility and engagement are key to bringing players back again and again.
We achieve these by offering a full turnkey solution, extremely fast on-boarding of new clients and various kinds of integrations that enable our partners to expand their existing online gaming operations by adding lottery games.
Product-wise, we offer a huge variety of combinations between different lotteries and related lotto products, which allow for immense freedom and flexibility in the design and execution of marketing campaigns, and secures fast expansion of the business.
What do you think will be the key trends for the Lottery market in 2016?
The key trend I see is the improvement of accessibility of lottery through digital channels of distribution with a focus on social engagement. Also, we expect jurisdictions to engage more actively with the issue of online lottery, pushing the industry a step forward towards a truly global expansion.
How long will it be until all lottery gambling is done online?
If we look at other gambling verticals that made a successful transition to digital channels, we see that online and land-based coexist and complement each other perfectly well. Being online is essential to staying relevant in the digital age, but I don’t think it will replace land-based operations altogether, especially with such a traditional product like lottery, and at least not in the foreseeable future. A well-balanced mix of both models will lead to an overall increase of business revenues, while offering a true multi-channel experience for players.
What are Lottotech's main goals moving forward?
Our main goal is to maintain Lottotech’s market leadership in B2B lottery software products and services. We achieve this through constant evolution and improvement of our offering – more products and promotional options, more flexible tools to give our partners better marketing opportunities. And, of course, innovation – the driving force of our business.
Alexander Dimitrov is a seasoned online gaming professional with more than 13 years of experience in IT businesses. His solid background includes working for Playtech, where he was dealing with product management, regulations and compliance. As head of product at Lottotech, Alexander is in charge of leading the product business team and is responsible for the overall delivery of the lottery platform