Betting on Lottery Growth

Betting on Lottery Growth

A data-rich peek into how technology and consumer choices play a part in the growth of the lottery category.

Posted January 26, 2024 by IGT in Consumer Trends

As part of IGT’s multi-year partnership with Foresight Factory, a global consumer trends and analytics agency, we publish an annual Lottery Trend Report backed by real-world data. Recently, Foresight Factory released new research, “Betting on Gambling Growth,” which looks at how consumers across the globe engage with various forms of gaming entertainment.

Technological innovations are continuing to revolutionize the entire gambling sector. With more consumers utilizing wearables, paired with the continual advancement of AR and VR, this offers the opportunity for interactive ways for consumers to experience betting.

Behind the Numbers – Gambling is Growing.

A growing proportion of consumers rate placing a bet or gambling as an entertainment activity. The sentiment is more widespread among men than women and is higher among Millennials and those in the highest household income grouping.

Lottery play has grown, reaching new heights for monthly play in multiple countries, mimicking the rest of the gambling industry over the past five years.

Foresight Factory also highlights the latest deregulation of gambling in jurisdictions across the world as a signal for growth, as access options for players continue to grow. These betting opportunities have shifted, from in-person to smartphones, and most recently, to wearables.

Virtual and augmented realities are also enhancing the gambling experience, as the revolution of technology will continue to push the boundaries of how and where consumers are interfacing with gaming.

Lotteries may consider implementing AR filters on various social media platforms to engage with players in new and unique ways.

Foresight Factory also indicated in their research that payment options for gambling will continue to grow, extending beyond traditional cash payments. When looking at how current lottery players like to pay for goods and services, there is no clear preferred method, as it’s split between cash and digital options.

This number is up from 31.8% in 2020, showing a strong signal that consumers utilizing newfound payment methods are here to stay.

Both in-store and online, mobile (digital) wallets are the most popular method of payment globally and are forecast to become more popular over the next four years.

Payment methods are very fragmented, with no single payment method being preferred by the majority of global consumers. In 2021, mobile wallets held the highest share among payment methods globally, both in-store (32%) and online (49%), according to the Worldpay by FIS 2023 Global Payments Report. They are also expected to increase in popularity, with 43% of in-store and 54% of online payments forecast to be made by mobile wallet by 2026. This increase is at the expense of cash. The percentage of in-store cash payments is expected to fall from 16% in 2022 to 10% in 2026.

For lotteries, consider the implication of a continually cashless society, and what it could mean for players’ ability to engage with both retail lottery and iLottery.

With Great Power Comes Great Responsible Gaming

With the continued growth of areas to buy and play lottery, including the number of jurisdictions with iLottery and new hardware advances at retail, this only strengthens the importance of promoting responsible play.

With the goal of keeping players informed, some lotteries have taken a proactive approach to their responsible gaming efforts. In Europe, La Française des Jeux (FDJ) unveiled an information campaign intended to promote more sustainable gaming. In the United States, sports leagues have started releasing safe gambling public service announcements during broadcasts. The New York State Gaming Commission debuted signage featuring a QR code to connect individuals concerned about their gambling with trained, local problem gambling clinicians in real time. These efforts are designed to help a broader range of players learn about the risks of gambling and promote positive play.

Beyond education, players can utilize other tools to support responsible play. Online growth and cashless options can allow players to set deposit and spend limits, as well as view their own history. These tools empower players to make informed decisions about their gameplay, including setting time limits and choosing when to stop.

IGT continues to monitor these trends and others that help to support our product research and create future product roadmaps.

If you haven’t yet, be sure to read our 2024 Trend Report:

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