Lottery: Key market research findings
- High price money drives market growth
- Increasing use of lottery profits for charity
- Key vendors – California State Lottery, Illinois Lottery., Missouri lottery, Hoosier Lottery, New York state lottery, North Carolina Education Lottery, and Texas Lottery Commission
Technavio’s market research analysts predict the lottery market in the US to grow at a CAGR of around 5% between 2016 and 2020. The growth of this market can be accredited to the high prize money associated with lottery tickets. The lottery market comprises several types of games and tickets in various price range. The reward also differs from one ticket to another, which are either given away as physical goods or as monetary benefits. Since the lotteries offer a high prize money, a large group of individuals get attracted to the rewards and invest accordingly to participate in these games.
The new market research report from Technavio presents a breakdown and analysis of the lotter segments based on the type.
“At present, the use of lottery profits for charity is an upcoming trend in the market. A large portion of the profit earned through the lottery is used for societal development and other welfare activities. Apart from developing education systems and buildings, states also divert a large portion of the profit for the development of labs for experimental purposes and invest infrastructure developments. State Treasury also holds a large portion of the lottery profits. It is a method adopted by the state governments to utilize the money in a more efficient manner,” says Ujjwal P. Doshi, Lead Analyst, Media & Entertainment, Technavio Research.
The introduction of the individual lottery system is expected to propel the demand for scratch card lottery during the forecast period. To boost the market shares, the lottery suppliers are coming up with new and innovative ideas such as extended play. Extended-play games or baited hooks, which are gaining popularity among the players, resemble miniature spreadsheets and the players spend more time matching the revealed numbers instead of scratching off the cover and discovering the loss instantly.
The key vendors in the lottery market in the US include California State Lottery, Illinois Lottery., Missouri lottery, Hoosier Lottery, New York state lottery, North Carolina Education Lottery, and Texas Lottery Commission. Most leading players are also adopting aggressive marketing strategies, thereby increasing competition. Further, there is an influx of private labels in the market. Thus, in order to survive and succeed in this competitive environment, it becomes imperative for vendors to distinguish their product and service offerings through clear and unique value propositions. Therefore, to remain competitive in the market, vendors develop not only new technologies but also stay up-to-date with the emerging technologies that could influence their product lines.
A more detailed analysis is available in the Technavio report, Lottery Market in the US 2016-2020.
We can customize reports by other regions and specific segments upon request.
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