One of the biggest challenges in the lottery market uncovered by Technavio is competing with these online platforms that can provide 24/7 on-demand gameplaytrvh
Recent market research from Technavio has revealed that the California State Lottery remains one of the key market vendors in the global lottery marketplace. Within its insights into the top-20 market vendors in the global lottery space, the California State Lottery was listed as one of six state lottery organizations in the US, suggesting that the market for keno and bingo halls 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, thanks to the growth of multiple 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 in comparison to the UK, where online bingo and lottery-style games are a considerable generator to Britain’s broader iGaming industry.
Outright revenue generated by the UK’s bingo and lottery subsector weighed in at a shade under $1bn in 2019 pre-pandemic. Its licensed and regulated online operators are leading the charge too. UK examples like online bingo at Paddy Power lead the way by covering all bases with 75, 80, and 90-ball US-style action in order to appeal to a broad spectrum of players. This is likely the route the US iGaming sector will be taking in the future.
California’s Lottery & Bingo Operators Need to Compete With Instant Games
One of the biggest challenges in the lottery market uncovered by Technavio is competing with these online platforms that can provide 24/7 on-demand gameplay. Although more lottery and bingo players are looking to go online and play with reputable vendors, land-based lottery venues must look to provide a new kind of gaming experience to differentiate themselves.
Instead of providing terminal-based instant games in bingo halls, where players will have to travel and venture outside of their comfort zone to enter, vendors will need to look at delivering enhanced social gaming experiences for players. Fostering interaction and engagement between groups will be key, as this is the one benefit land-based gaming will always have over its online counterpart.
In California, it may just require the State Lottery to shift the distribution of its revenues somewhat. Within the California State Lottery’s latest figures, between 1985 and 2020, the State Lottery has funded $37.6bn towards the state’s education sector, with $67.4bn ring-fenced for its prizes and a further $4.8bn and $2.4bn reserved for operating expenses and game costs respectively. It’s possible that the organization may need to ramp up its game costs to entice more people out of their homes to continue playing in bingo halls that have been dedicated communities through the decades.
Where Will the Majority of the Global Lottery Industry’s Growth be Generated?
In terms of regional highlights, the lottery and bingo sector appears to be the ripest in the Asia-Pacific (APAC) region. More than a third (36%) of the global market’s growth between 2022-2026 is expected to be generated by the APAC area, with China pinpointed as the focal nation to lead the lottery market here. Market growth in the APAC will be quicker than growth in all other regions with regulated lottery markets.
In the APAC, the acceleration of growth is said to be largely down to the relaxation of government jurisdictions, as well as the rise in household disposable incomes.