“ We believe companies such as ours have tapped into a previously unmet demand, and that this has attracted new players rather than pulling players away from other products”
“ We believe companies such as ours have tapped into a previously unmet demand, and that this has attracted new players rather than pulling players away from other products”
James Miéville, Raffle House
it had a clear path to use lottery as an acquisition tool. It’ s easier to acquire a player, but not to say it’ s cheaper, with lottery games. And that’ s including instant games and scratch cards. Yes, this is easier, less frequent and less aggressive play. But it was used for acquisition of the players,” she says.“ Of course, not all lottery players would transition to sports betting or iGaming. But yes, that journey was a natural one [ for players ].”
However she acknowledges that gamified lottery products offering unique bonuses or a novel element prompt longer gaming sessions and a higher chance for cross-sell capabilities.
ACROSS THE POND
The US is operating a dynamic and nuanced lottery sector, but like other verticals it is fragmented and
many states still have a state-run lottery monopoly in place. Therefore, regulations are hugely outdated and largely do not support new multistate courier operations like Jackpocket. The vertical came under fire in February when a group of investors won two multimillion-dollar jackpots in Texas, after mass purchasing of tickets in bulk, and effectively hacking the system. The scandal resulted in harsh criticism around the lottery courier offering, and Texas moved to ban these services in the state.
According to 2024 data from the Office of Program Policy Analysis and Government Accountability lottery betting was available in 19 US states last year.
“ I think the US lotteries are concerned about it because they are finding themselves competing directly with very mighty private companies that are active in sports betting and iGaming,” Becker explains.“ But I honestly don’ t know how the US market will play out. I think it will be two steps forward, one step back. I think it will be very heterogeneous and be different in each state.
“ Oftentimes there’ s no clear regulation for online sales. The courier model evolved because there is demand and somebody is just filling the gap. I think the problem is that there’ s no good regulation in place to foster the well-regulated sales of online lottery tickets to customers.”
Becker believes that, in order to maintain a thriving and innovative lottery sector, robust regulation is needed. And this is something that appears to be missing in the US. Germany, however, has robust lottery laws in place, he says. And having these laws in place has supported and encouraged the rise of new products and fresh innovations.
He says the gambling regulator in Germany, the GGL, has determined clear boundaries for the lottery sector and this makes it easy for lottery brokerage operators like Zeal to adhere to the rules.
“ A well-regulated market fosters and incentivises good behaviour and growth. In the end, society benefits from that growth. I do think there’ s an opportunity to strike a balance between a well-regulated and open market that is open to private players like us.”
Many European markets also still operate lottery monopolies, while others, like the UK and Italy, issue a tender for their national lottery. This is either won by a single lottery provider or a consortium of providers.
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