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An Ultimate Guide to Start Your Online Lottery Business

  • Lottery Industry Highlights
  • Traditional Lottery Systems
  • How Online Lottery Solutions have Replaced Traditional Lottery?
  • Benefits for Investors & Operators
  • Benefits for Lottery Players
  • Dynamics of Online Lottery Industry
  • Segmentation of Online Lottery Market
  • Geographical Analysis of Online Lottery Market 
  • Online Lottery Software Development
  • What Things Should be Considered in an Online Lottery Business Plan ?
  • Innovative Online Lottery Solutions
  • Future Scope of Online Lottery
  • Key Vendor Analysis
  • How GammaStack can Help you in Starting your Online Lottery Business?
An Ultimate Guide to Start Your Online Lottery Business

Everyone loves to get the flip of a coin turned towards their side ! Each one of us stays curious to try out our luck. That’s why lottery games gain such a huge craze all over the world. Along with the potential gaming prizes, sheer thrill and excitement that comes with lottery gaming entice more people towards it. Lottery has been one of the oldest gambling forms and has always succeeded in staying on top of the line in terms of popularity and count of players. With the arrival of the digital age, the lottery industry has witnessed another evolution as people have started getting drawn towards online lottery solutions that prove to be engaging as well as convenient.

Lottery Industry Highlights

  • The estimation of the worldwide lottery market is $284 Billion.
  • The average industry growth in the time span of 2014-2019 is estimated to be 0.2%
  • The increase in the discretionary spending of people and the improvement in the global economy has contributed to the enhanced performance of the lottery industry.
  • The market size is predicted to be $216bn
  • The count of businesses is estimated to be 25,903
  • The employment in industry is nearly 228,953
  • The segmentation of gambling market by type is sports betting, casino, lotteries and others
  • The segment of lottery was the largest in gambling market in 2018 at $207.3 billion or 46.1 %
  • The advanced segmentation of the lottery market by sales channel is online, offline and VR.
  • In 2018, the lottery market’s largest segment by the sales channel was offline gambling at 96.2 %.
  • Amusement market’s largest segment in 2018 was the gambling market which accounted for 87.9%.
  • As per prediction, top opportunities of the global gambling market are expected to arise in the segment of offline lotteries that will gain nearly $48.1 billion of the total global annual sales by the year 2022.
  • The market is expected to gain maximum in China at nearly $23 billion.
  • 24% of the lottery players belong to the age group of 55-64.
  • 54% of the overall lottery players are male.

Traditional Lottery Systems

The paper lottery system was the traditional method through which lottery games are played. Though this is a generic system it still lacks consistency and transparency. The issue of opaqueness in the lottery draws and operations has resulted in the banning of the lottery system at various places across the world. For overcoming the disadvantages of the traditional lottery systems, online lottery system has come into existence. Online lottery has enabled us to create a transparent system with equal chance of winning for every player.

How Online Lottery Solutions have Replaced Traditional Lottery?

Traditional lottery systems lacked transparency and thus people didn’t find them reliable enough. Online lottery systems come with fairness and are completely transparent systems thus people count on them as the trusted gaming sources. The growth of online lottery gaming has increased with the enhanced count of mobile using gamers all over the globe. As per a survey by Gambling Commission of the UK, in 2013, 23% people used mobile as a source for gambling and 44% people opted for mobile sources to gamble in 2018. The figure nearly doubled in the 5 years.

Most of the countries quickly caught up with the online mobile lottery gaming trend and most of the traditional lottery systems are upgrading them to online sources. In the USA, different states including Pennsylvania, Illinois, New York, etc have successfully put their step in mobile lottery gaming and as per previous records, nearly 44.4% of lottery website visits in Illinois were from mobile apps users. Similar figures were found in other places like Canada, England and many more.

With the rapidly spreading technology, it’s the time for revamping the old traditional lottery systems and moving towards setting up an online lottery business. The mobile/online lottery systems are expected to see more growth and popularity in the upcoming years. The security, flexibility and convenience of the online lottery environment make it one of the most credible options of gaming.

Benefits for Investors & Operators

The increased magnitude of escalation in the count of people going for lottery gaming, digitization in the operations comes with immense benefits for the investors and operators:-

  • Easy scalability
    Online lottery systems come with impeccable benefit of easy scalability. The systems built by the online lottery software providers are capable of efficiently handling the enhanced count of users without any requirement of shutting down or pausing the operations.
  • Data on winnings and customers

Security of crucial data and information is one of the major advantages of an online lottery system. The important information such as customer’s personal data, winnings data, financial data and much more can stay completely secure and help operators in smooth management of their lottery business.

  • Easy Management of Agent and Distributor Network 

The online lottery system makes it easy for the operators to manage their distributor and agent network. Operators can stay away from the hassles and costing of hiring extra staff for maintenance of business relationships with the agents as it can be done easily through an online system. The robust online systems of lottery also come with the capability of drawing useful information through data from a raw distribution network which proves beneficial for the lottery businesses. 

  • Authentic Winnings and Tickets
    One of the major issues in the lottery operations is keeping a complete tracking of the authentic winnings and tickets. Online lottery systems come with assurance of authenticity which is maintained at various operation levels starting from distribution of tickets to the winning redemption.
  • Enhanced Transparency and Credibility

Lottery business relies upon winning customer’s trust. With the establishment of authenticity of online lottery solutions among players, operator’s credibility gets enhanced in an effective manner. The online lottery software developers enable operators to deliver a great level of transparency in the lottery gaming operations which proved to be another factor that can contribute for operators to build their credibility among target audiences.

  • Unparalleled Inventory Management

The online lottery systems also offered unparalleled inventory management for the investors and operators. Due to scaling, inventory issues prove to be hassles in some stages. The online lottery systems ease up the operations along with maintaining a steady cost or an increase that is bare minimum which does not hamper the operations.

  • Data Security

The digitization of the lottery operations enables operators for safeguarding against the data theft. Financial as well as personal data of the customers is a highly critical information for lottery businesses and loss of such information can make operators lose their customers trust and affect their business. Online lottery systems come with higher levels of security thus ensuring that the confidential information of your users stay secured. 

Benefits for Lottery Players

The jackpot of powerball new year in 2016 was $1.6 billion that brings the fact that players love lottery games and with the ease of online lottery systems make it easy for users to quickly and conveniently access them from different parts of the globe.

  • Ease of Gaming

The online lottery systems ease up your gaming experience and offer you the convenience of buying lottery tickets easily online and carrying out the gaming operations in a secure and transparent manner. As per a survey by the UK Gambling Commission, 95% customers like playing online at the convenience of their homes and the age group that prefers online lottery gaming is 25-34.

  • Proven RNG Systems for Fairness

Online lottery systems come with proven random number generators which keep the entire gaming operations fair and transparent for the players so that they can play while staying assured about the fairness of the game.

  • Go Green

Traditional lottery systems have paper lottery tickets while online lottery systems involve digital ticketing systems. Paper production involves cutting down trees which is not good for the environment. Thus online lottery systems contribute in saving the paper and keeping the environment safe.

  • Authentic Tickets

Online lottery platform comes with assurance that lottery tickets are authentic and are managed centrally by a database in a secure manner and there are no risks of any kind of tampering in the tickets.

  • Reliable and Safe

Customers can stay assured about the security and confidentiality of their personal as well as financial information by opting for online lottery systems. Online lottery software providers pay consideration to the safety and security of the data.

  • Credibility and Transparency

The online lottery systems come with transparency in the gaming operations and build credibility for the online lottery businesses.

Dynamics of Online Lottery Industry

An increasing influence of the cutting edge technologies is witnessed by the global market of online lottery. The quick technological advancements demand that the operators must stay updated about the emerging trends of the online lottery market to keep themselves well informed about how to start online lottery business. Various exclusive online lottery solutions are emerging in the market including blockchain lottery which comes with decentralized nature, crypto based lotteries that enable transactions in cryptocurrency and many more such unique solutions. Operators and investors must keep an eye over such innovative and all exclusive trends of the online lottery business model so that they can keep their systems updated as per the industry standards and offer the in-demand and ultra modern solutions to their targeted audience. Whether it’s about augmented reality and virtual reality or bitcoin and crypto based lottery solutions, the market of online lottery gaming has reached significant heights and for keeping pace with the immense growth of the industry, one must keep on updating their existing systems as per new developments.

Segmentation of Online Lottery Market

Nearly half of overall market share was dominated by the draw based games in 2017 which was growing at more than 8% CAGR. The great shift from traditional mode to virtual ones has augmented the growth of the online lottery industry globally.

  • Market Segmentation by Geography

• Europe

o France

o UK

o Germany

o Italy

o Spain

o Sweden

o Denmark

o Norway

o Finland


o Australia

o Mainland China

o China SAR Hong Kong

o Singapore

o Japan

• North America

o US

o Canada

• Latin America

o Argentina

o Mexico

o Brazil


• South Africa

  • Market Segmentation by Product

•Online Sport Lotteries 

• Online Instant Games

• Online Draw-Based Games

• Others

  • Market Segmentation by Platform

• Desktop

• Mobile/App-Based

Geographical Analysis of Online Lottery Market 

  • Segmentation of the online lottery market by geography is into MEA, Europe, APAC, Latin America and North America.
  • In 2017, Europe dominated nearly half of the total market share with growth at CAGR of greater than 9%
  •  The enhanced growth in per capita disposable income is majorly contributing to increased spending on discretionary across Europe which drives this region’s growth in the global market.

Online Lottery Software Development 

Online lottery is a lucrative industry where one can tap for getting a remarkable level of success. Opting for a feature rich online lottery software for your business can help you climb ladders of success and engage your target audience in an effective manner. Now the question that arises is what is required for developing an online lottery software ?

Mainly an online lottery software comprises of a website and a lottery management system which enable your users to select and purchase lottery tickets and the system also provides regular notifications regarding winnings,payouts, etc. The Custom Online Lottery Software also includes a mechanism for managing player accounts and for providing complete analysis of the game outcomes. Optional features include marketing tools for attraction and retention of players, help desk module and much more.

What Things Should be Considered in an Online Lottery Business Plan ?

Are you wondering how to start a lottery business online ? The factors that must be considered while planning an online lottery business include:-

  • Analysis of Target Audience

The investors or operators must do a comprehensive analysis of their target audiences and should keep themselves informed about the demands of the group of players they are targeting. They should stay updated about the trending online lottery games which are the most loved ones by the players and should integrate them in their online lottery platform. They must also keep themselves informed about the in-demand and advanced functionalities that are mostly preferred by their target audiences and should include them in their platform.

  • Trends of Targeted Geography

Various geographical locations have different industry trends as per the rules and regulations & the preference of the targeted audience at that particular location. Thus before starting an online lottery business, one must figure out their targeted geographical locations and should do complete research about that particular geography’s trends, audience’s preferences, etc.

  • Jurisdictional Compliances & Regulations

Law and order play a crucial role in any business thus operators must check the jurisdictional compliances and regulations of their targeted location of operation. They should ensure that their platform is developed in compliance with all the mandatory regulations and should be completely secure as well as reliable for their users.

  • Online Lottery Software

For any successful online lottery business, a feature rich, user friendly , engaging and robust online lottery software is required for enticing the target audiences and for offering them a convenient and exciting gaming experience. Here are some of the requisite features which must be covered in an online lottery software to offer an enjoyable and convenient gaming experience to your users:-

-Multiple Device Compatibility

The online lottery software must come with multiple device compatibility thereby making it easier for the users with varying devices to easily access the platform and have a convenient lottery gaming experience. The platform must be compatible on different devices including mobile, desktop, tablet, etc. 


Online lottery entails the similar risks as other online entreprises which include online payment processing such as :-

>Transaction Information Security Risks

>Software Vulnerabilities

>Network Vulnerability
>Server Security Risks

For staying safe from such risks, the online lottery software must include a risk management module that analyses and handles all the prospective risks in the platform. The software should be developed in a manner that all the sensitive information of the users remain secure and there are no risks of software, hardware or any network vulnerabilities.

-Responsible Gaming
All the trusted lottery platform owners should ensure that the players on their platform gamble responsibly. They should keep their players well informed about the guidelines of the responsible gaming and ensure that they follow them for having a safe gaming experience. Platform owners must ensure that their online lottery software includes in-game alerts for the players with suspicious activity and must strictly adhere to responsible gaming rules such as age restrictions, gaming limits, etc.

-Back Office Admin

A powerful back office admin must be included in an online lottery software for central management and monitoring of the necessary gaming operations and activities of the players in the platform. It covers operations including game management, player management, transactions management, account management and much more.

-Payment Systems

Payment systems are the must for a well-functioning online lottery software. Thus an online lottery platform must come with secure and seamless payment options for facilitating a safe and convenient transaction for the users coming on their platform. The software must also offer major cryptocurrencies support so that the users can go for quick and easy crypto transactions on the online lottery platforms.

-Engaging Game Types
Various engaging and trending online lottery game types such as Keno System, Powerball, Bingo, Lotto Games, etc must be included in the online lottery software for ensuring that the players have an entertaining and thrilling gaming experience on the platform.

-Lottery Mobile App

A well functioning online lottery mobile application helps the lottery businesses to drive more audiences towards their business as the mobile users are growing exponentially nowadays. Lottery mobile app can act as a profit booster for your online lottery business.

Innovative Online Lottery Solutions

To keep your business distinguished from the other competitors and to stay ahead of the rest in the market, you must include some exclusive online lottery software solutions in your business which can help you in engaging your target audiences in an effective way. Here are some of the unique online lottery solutions:-

  • White Label Online Lottery Solution

White label online lottery software is a market ready platform which has in-built features, lottery games, payment systems and much more. It enables operators to make quick market entry without spending much time on development of software from the scratch.

  • Custom Online Lottery Solution

Custom online lottery solution is a completely customized solution which comprises of a custom user interface as per your brand identity, on-demand custom features, payment methods of your choice, lottery games as per your demand and other seamless customization opportunities to get a 100% customized online lottery solution for your business.

  • Blockchain Lottery Solution

The blockchain online lottery solution is an entirely exclusive solution that comes with decentralized nature thereby bringing transparency as well as fairness in the operations of online lottery gaming. It adds more values to your platform and ensures your users about the security of transactions and fairness of gaming operations on your platform.

  • Crypto Online Lottery Solution

Crypto based online lottery software enables the users to carry out transactions in their desired cryptocurrencies including Bitcoin, Ripples, Ether and much more. It facilitates quick as well as highly secure transactions for your users.

  • Lottery Mobile App Development Solution

The increasing count of mobile users demand every business to get a mobile app for engaging their targeted mobile using audiences. Lottery mobile apps are a proven way of enticing your users by enabling them to play their desired lottery games at their fingertips in a hassle-free and highly secure manner.

Future Scope of Online Lottery

As per research, the global market of lottery is expected to witness a remarkable rise between the period of 2020 and 2026. In the year of 2020, the growth of the market was steady but with the adoption of right strategies by the players, the market is expected to see a great rise in the upcoming time. The investors must make a mindful decision and must choose a reliable online lottery software provider in order to make maximum profit from their lottery business in the upcoming years. As we all know, 2020 is the period where the whole world is fighting against the pandemic COVID-19 and it has affected the global economy significantly and the lottery industry is no exception. But as people are staying mostly at their homes to follow social distancing thus they are getting more attracted towards the online gaming systems to keep themselves engaged during lockdown. It can be a profitable time for the investors for starting online lottery business and make huge profits. All they require is the right strategy and a right online lottery software provider ! 

Key Vendor Analysis

The global market of online lottery is highly fragmented because of the presence of different international and regional players. The on-going upgrades and innovations in the domain of digital gambling are strengthening competition globally. The market is at its peak in countries like Western European countries while its in nascent stage in the countries that have developing online gambling economies like India and the US. The leading vendors of the industry are focussing on development of new and innovative business models and to diversify their portfolios for attracting new users globally.

How GammaStack can Help you in Starting your Online Lottery Business?

If you are planning to make an investment in the online lottery business or planning to upgrade your existing lottery business, then you can count on GammaStack for getting a feature rich and ultra modern online lottery software development solutions. We offer a state of the art online lottery platform that is integrated with all the trending lottery games, requisite and advanced features, secure payment gateways and much more. Our technically proficient team offers you seamless customization opportunities in the online lottery platform.

GammaStack has gained great recognition for offering seamless iGaming software development solutions including sports betting software, fantasy sports software, online casino software, esports software , online lottery software, etc. Possessing more than 8 years of experience in the industry has made us capable of meeting the clients expectations and delivering them the most trending and exclusive solutions with adherence to higher level of quality standards.