The lottery industry has become one of the most lucrative and profitable industries in recent times. Digitalization has accelerated the growth and opened up new opportunities for players as well as investors. But even after the massive popularity, people stay unaware of certain online lottery terms. Lottery slang can leave anyone confused. So whether you are a noob, a professional, or an investor wanting to know more about the online lottery terminology, we are here to help you out with a lottery platform terminology guide. In order to help you understand the lottery better, we have created the most comprehensive glossary of online lottery terms to help you brush up on your lottery industry vocabulary.
But before we jump right into the Lottery glossary of terms, let’s understand what exactly a lottery is.
Online Lottery Definition: What is an Online Lottery?
What Is the Lottery? Some people place bets on sports, some form their virtual sports teams, while some simply buy tickets. No fuss, no hassle, and no technicalities.
Lottery is one of the oldest yet simplest forms of gambling, which involves drawing numbers. When the drawn number matches the number on the ticket buyer’s ticket, the buyer wins a jackpot! Several games differ in concept as well as the payout amount. Some offer a little while some offer cash for a lifetime. No wonder this form of gambling is popular among all age groups. A lottery is a game of chance where winners are determined by random draws, increasingly digitized in online platforms
Lottery games can be played both offline and online. People buy tickets from vendors or they simply register on online lottery platforms to try their luck. Authorized retailers, also known as Agents/Retailers, use a lottery terminal to sell lottery products, print official lottery tickets, and validate winning tickets. An Agent/Retailer is an authorized entity licensed to sell lottery tickets. The lottery operator administers lottery games, overseeing their operation, management, and ensuring compliance with regulations. Players can use lottery play slips, which are machine-readable paper forms, at retail locations to select their numbers; the lottery terminal then processes these play slips.
Lottery explained: How Does the Online Lottery System Work?
There are several online lottery platforms that allow customers to play their favorite games. A lottery messenger service enables players to participate in lotteries from different locations by purchasing tickets on their behalf, providing access to worldwide lotteries without being physically present at a retail location. When buying tickets, it is important to obtain an official lottery ticket, which is the validated proof of participation purchased from a licensed retailer or platform. In recent times, during the pandemic, the online lottery industry rose to new heights. Since land-based outlets witnessed a complete shutdown, online lottery platforms came to the rescue. Today, the online lottery has become one of the safest and most cost-effective ways of having fun from the comfort of home.
The lottery’s profits are often allocated to public programs, beneficiaries, or reinvested into community projects.
How to Use This Lottery Glossary?
This online lottery glossary is designed to help you quickly understand common terms and concepts used in the lottery industry. You can use it as a reference while reading lottery-related content, exploring different game types, or learning how lottery platforms work. Whether you are a beginner or an experienced player, the glossary simplifies complex terminology and improves overall understanding.
You can find terms easily by browsing the glossary alphabetically grouped by game types, features, or lottery concepts. Use the alphabetical order for quick lookups, or choose a category to understand related terms in one place.
Lottery Glossary of Terms: Lottery terminology
Let’s understand the lottery industry vocabulary and the online lottery glossary in detail:
- Advertised Jackpot / Advertised Jackpot Amount: The advertised jackpot amount is the estimated pre-tax annuity value promoted by the lottery operator as the minimum jackpot that will be paid to the winner of the draw. This figure is used to attract players and may differ from the actual payout depending on whether the winner chooses the annuity or lump sum option.
- Advance Bet: An advance bet allows players to place lottery bets for upcoming draws in advance without buying tickets each time. It ensures continuous participation and prevents missing future draws.
- Annuity: An annuity is a prize payment option where the winner receives their winnings in multiple installments over an extended period, typically 20-30 years. Annuity payments can be structured as consistent payments or graduated payments that increase over time. Winners can choose between annuity payments and a lump sum payment when claiming large jackpots.
- Any Order: When players choose to match-winning digits in any order.
- Ball Draw Machine: A device that randomly draws balls that contain the winning numbers of the game.
- Bonus Ball: Another common online lottery glossary of terms. When the ball gets drawn from the second machine of the lotto game, it’s known as the bonus ball.
- Beneficiary: The heir who receives the lottery jackpot after the passing of the winner.
- Bonus Money: Also known as promotional money, this money can be used for participating in lottery events but not for withdrawing.
- Bonus Number: When a number is drawn in addition to regularly drawn numbers, it’s known as the bonus number. A bonus number or ball is an extra number drawn in addition to the main winning numbers in some lottery games, used to determine prizes in lower divisions.
- Boxing: Some three-digit lottery games offer players the opportunity to play more digits than the usual.
- Box Bet: Box bet is one of the common lottery phrases that is used widely. It is a type of bet that allows players to place bets and win by matching digits in any possible order, instead of the exact order.
- Bundle: The bundle includes personal entry as well as shares in the syndicate.
- Cash for Life: Cash for Life is a lottery game that involves prize payments that are made yearly, monthly, and weekly in installments.
- Cash Option / Lump Sum: The cash option, also known as lump sum, enables players to take the jackpot in a single one-time payment instead of an annuity. The lump sum option provides a single payment, while the annuity option pays out winnings in installments over a specific period, typically 20 to 30 years.
- Claim Center: As per the online lottery glossary of terms, a claims center is a location where players can have tickets validated and collect prize amounts that exceed those payable by a retailer. Players may need to fill out a claim form when claiming a prize of at least a specified value.
- Claim Process / Claim Prizes: The claim process is the paperwork or procedure that’s carried out when a player wins the jackpot. To claim prizes, winners must present their winning ticket and, if required, a completed claim form at an authorized claim center within a specified time period, which varies between lotteries. Unclaimed prizes are winning tickets that have not been claimed before their expiration date.
- Cold Numbers: Cold numbers are those that have not been drawn for a long period. Numbers that get selected rarely are known as cold numbers.
- Collect Prize Amounts: The online lottery glossary of terms by which winners claim and receive their lottery winnings. Winners can collect prize amounts either as a lump sum or through annuity payments, depending on the prize structure and their chosen option. Larger prizes may require validation and completion of a claim form at a claims center.
- Combination Bet: When a player selects a straight bet and a boxed bet, it’s known as a combination bet as per lottery glossary of terms.
- Computerized Random Number Generators: Secure computer-based systems used to generate random numbers for lottery draws, replacing traditional ball draw machines in certain jurisdictions or games. Computerized random number generators ensure fairness and security in the drawing process.
- Courier Model: A courier model in the lottery glossary is a lottery service where a licensed third party purchases official lottery tickets on behalf of players. The courier securely stores the tickets and delivers winnings according to the lottery’s rules.
- Daily Game: online lottery term for Lottery games in which a draw takes place every single day are called daily games.
- Draw Machine: A draw machine is a mechanical or electronic device used to randomly select winning lottery numbers during an official draw. It ensures fairness, transparency, and unbiased results.
- Digit Games: The number games are also known as digit games.
- Double: Three to four-digit numbers containing the same number pair are known as doubles.
- Double-Double: When a four-digit number comes with two doubles or with two pairs of the same numbers.
- Draw: One of the most common online lottery terms associated with the online lottery glossary of terms. Lottery results are known as draws.
- Draw Game: Draw games require players to select numbers that are drawn randomly to determine winners.
- Electronic Funds Transfer: The electronic banking process that facilitates the transfer of funds to and from authorized accounts, particularly for transactions related to lottery operations such as deposits, withdrawals, or prize payouts. Electronic funds transfer ensures efficient and secure handling of financial transactions within the lottery ecosystem.
- Entry: A lottery ticket is also known as an entry in the online lottery glossary of terms.
- Estimated Jackpot / Lottery Estimates: The jackpot could be less or even more than the jackpot that has been advertised. Lottery estimates refer to the projected jackpot amount for a particular draw, calculated based on ticket sales and other factors.
- Exact Order: As the name suggests, in online lottery terms, exact order is a betting option in which the player is required to match his numbers with the winning numbers in exact order.
- Exotic Game: The lottery games that use non-standard winning conditions.
- Exotic Numbers: A combination of unusual, strange or uncommon numbers is known as exotic numbers.
- Fixed Jackpot: In the lottery glossary of terms, fixed jackpots are jackpots that cannot be changed or altered in size and are known as fixed jackpots.
- Fixed Payouts / Fixed Odds: It is online lottery glossary of the prize amounts that do not change, irrespective of the number of tickets sold are known as fixed payouts. Fixed odds mean that the chances of winning a specific prize remain the same for every draw. A fixed payout is a predetermined prize amount awarded to winners, regardless of how many people win that prize tier. Lottery games typically offer fixed odds, meaning that the chances of winning a specific prize remain the same for every draw.
- GGR (Gross Gaming Revenue): In online lottery terms, GGR (Gross Gaming Revenue) is the total revenue a lottery or iGaming operator earns after paying out winnings to players. It is calculated as total bets placed minus total payouts.
- Guess Range: Players are provided a series of numbers from which they can select the lottery numbers. This is known as the guess range in lottery terminology.
- Government Benefit Association Owned: Refers to a lottery glossary of non-profit, government-related organizations that operate and administer lottery games, such as MUSL and other multi-jurisdictional entities. These organizations are often structured to ensure that lottery profits benefit public programs.
- Group Play: A lottery terminology for a syndicate or a pool is also known as group play.
- Hot Numbers: Hot numbers are those that have appeared frequently in recent draws. Numbers that are frequently drawn over a particular period of time.
- Instant Games / Scratch-Offs: Games where players get to know their results instantly. Scratch-offs are instant-win games where players reveal if they have won a prize by removing a coating from the ticket.
- Jackpot Rollover: A jackpot rollover occurs when no player wins the top prize in a lottery draw. The jackpot is carried forward to the next draw, increasing the prize amount.
- Jackpot: The final prize of online lottery glossary terms in lottery games is also known as a jackpot. A jackpot is the top prize in any game, which can grow if there are no winners.
- Jackpot Win: A jackpot win refers to achieving the top prize or ultimate victory in a lottery game. The winner of a jackpot win can typically choose between payout options such as an annuity (installments over time) or a lump sum (one-time payment). Jackpot wins are highly publicized and are a major attraction for players.
- Jackpot Cap: The maximum amount of the total jackpot is known as the jackpot cap. When a jackpot reaches its cap or the maximum number of draws, a must-be-won draw is staged.
- Keno: Keno is a lottery glossary of terms game where players select numbers to match those drawn by the lottery from a larger pool.
- KYC/AML Compliance: KYC, or know your customer, and AML or anti-money laundering, are regulatory requirements for any online lottery business.
- Lottery: A game where winning numbers are drawn on a random basis for various prizes of diverse amounts is known as a lottery.
- Lottery Draw: The process through which the winning numbers are drawn is known as a lottery draw.
- Lottery Messenger Services: As per the online lottery glossary, it is the third-party service that operates independently and buys lottery tickets on behalf of the player.
- Lottery Operator: The lottery operator is the official organization responsible for conducting the draws, managing the tickets, validating winners, and ensuring the integrity and regulation of the lottery. The operator oversees the entire process, including prize payouts, compliance with legal standards, and the administration of lottery games.
- Lottery Prize: An online lottery platform includes a lottery prize, which is the monetary reward or winnings awarded to players based on the outcome of a lottery draw. Lottery prizes can include jackpots, secondary prizes, and instant-win amounts, and are awarded according to the prize structure of each game.
- Lottery Commission: A online lottery glossary of terms for the lottery commission is the governing body that oversees and regulates a jurisdiction’s lottery system.
- Lottery Scam: A lottery scam is a fraudulent scheme that falsely claims winners can receive large sums of money, typically through deceptive emails or phone calls. Legitimate lotteries are regulated, and players should be cautious of unsolicited communications requesting personal information or payment to claim a prize.
- Lottery’s Profits: Lottery’s profits refer to the revenue generated by lottery organizations after paying out prizes and covering operational costs. These profits are often distributed to beneficiaries such as government programs, education, or charitable activities.
- Lottery Syndicate: A lottery glossary of terms for an organized group of individuals who pool their money to buy multiple tickets collectively, increasing their chances of winning. Members agree to share any winnings among the group. Syndicates often have an organizer or leader who manages the pooling of funds, ticket purchases, and distribution of prizes.
- Lottery Systems: Lottery systems refer to the various strategies and structures used by players to increase their chances of winning. These include methods for selecting numbers, ticket matching, and using systems such as syndicates or wheeling systems. Understanding lottery systems can help players participate more effectively and improve their odds within different countries’ lottery frameworks.
- Lump Sum: See Cash Option.
- Lotto: A lottery glossary term known as Lotto is a type of lottery game.
- Match: When the drawn number matches the number on the player’s ticket, it is known as a match.
- Money Paid: Refers to the fixed sums disbursed periodically as annuity payments until the obligation is fully settled, including lifetime or minimum-term options.
- Multiplier: Multiplier is an extra feature in which an extra number gets drawn to increase the payout, and the number is added to the player’s ticket. A multiplier is an optional feature that a player can purchase that multiplies non-jackpot winnings by a specific value drawn randomly.
- Multi-Draw: Lotteries consisting of a number of draws are known as multi-draw.
- Multi-draw Packages: The packages that contain a set of lottery tickets that can be pre-ordered as per the lottery glossary.
- Multi-Jurisdiction Lottery: A multi-jurisdiction lottery is a large, collaborative lottery game offered across multiple regions or countries. These lotteries, such as Powerball and Mega Millions, enable larger jackpots and shared prize pools by involving several lottery organizations working together.
- Multi-jurisdictional: Lottery games that are played in more than one jurisdiction are known as multi-jurisdictional.
- No Match Numbers: A number consisting of 3 digits, without any doubles, triples, or doubles-doubles, is commonly used in the lottery glossary of terms.
- NGR (Net Gaming Revenue): NGR-to-deposits represents the percentage of player deposits that turns into revenue for the casino.
- Non-winning Lottery Tickets: Non-winning lottery tickets are tickets that did not win a prize in the initial draw. These tickets may be eligible for second-chance drawings or promotions, giving players another opportunity to win.
- Odds: Odds refer to the calculated probability of winning a prize based on the game’s structure, including the guess range and number of possible combinations.
- Outstanding Numbers: Another common term in the lottery terminology. The numbers have not been drawn for a long time. These are also known as overdue numbers.
- Omni-channel: It simply refers to multiple channels, including web, mobile, and kiosk setups, in lottery glossary.
- Pari-Mutuel: A pari-mutuel system is one where the total prize money for a specific tier is divided equally among all winners in that tier.
- Previously Sold Lottery Tickets: Previously sold lottery tickets are those that have already been distributed or purchased before a draw. They are relevant for prize validation, unclaimed prizes, and second-chance promotions.
- Prize Categories: Prize categories refer to the different levels or tiers of prizes within a lottery system, often corresponding to divisions. Each category determines the number and type of matches required to win specific prizes, such as first prize, second prize, or consolation prizes.
- Prize Divisions: Lottery games often have different prize divisions, with varying levels of prizes based on the number of matches.
- Prize Pool: A lottery glossary of terms for the prize that’s shared by the lottery winners is known as the prize pool.
- Total Available Prize Pool: The total available prize pool is the total amount of money allocated for prizes in a lottery game. It is a key component in determining jackpot sizes, prize categories, and overall player interest.
- Prize Payout: Prize payout is the percentage of ticket sales that is returned to players as prize money. It is a key measure of a lottery game’s financial return and is often discussed alongside prize structure and payout rates.
- Prize Winner: A prize winner is an individual who has successfully claimed a lottery prize. The process includes ticket validation, public recognition, and receiving the awarded amount.
- Progressive Jackpot: As the name suggests in , the jackpot is the value that increases when no player comes forth with the winning ticket.
- Payout: The total cash prize received by the player is known as payout. This can include non-monetary as well as monetary awards.
- Quick Pick: A feature in which a computer terminal randomly generates a player’s lottery ticket numbers.
- Random Number Generator / Computerized Random Number Generators: A computer software or program that draws number sequences for lottery draws. Computerized random number generators are used in some jurisdictions to ensure secure, random, and fair selection of winning numbers.
- Reintegro: Spanish lotteries consist of refund numbers that are also known as reintegro.
- Responsible Gambling: Lottery glossary of terms that ensures responsible gaming, which means operators are required to educate their customers about the amount of money and time they should be spending on the online lottery platform. This is known as responsible gambling.
- Rollover: A common lottery glossary of terms in the list of lottery terminology. When the jackpot is rolled over when numbers on the tickets do not match the drawn numbers.
- Scratched Card / Scratch-Offs / Instant Games: The numbers are concealed with a layer that must be scratched off to reveal them. Scratch-offs are instant-win games where players reveal if they have won a prize by removing a coating from the ticket.
- Secondary Prize: All prizes that are below the main jackpot are known as secondary prizes. A secondary prize is any prize amount that is below the main jackpot.
- Shares: The equal parts of the jackpot that are divided among the syndicate members are known as shares.
- Single Lottery Draw: A single lottery draw is one isolated drawing event in which winning numbers are selected. Winning is determined based on the numbers matched in that particular event.
- Subscription: The option that’s provided to the player that allows him to enter various lottery draws.
- Syndicate: A syndicate is a group of players who pool their money to buy multiple tickets and agree to share any winnings among the members. This is also known as a lottery syndicate in lottery terminology, and often increases the chances of winning through shared entries and collective play.
- System: A lottery glossary of terms for a formal method that’s used by players to buy several tickets at once to increase their chances of winning.
- Top Prize: The top prize is the maximum jackpot or highest available winning amount in lottery games. It is the most sought-after reward and may be paid out as a lump sum or annuity.
- Turnkey Platform: A turnkey solution is a type of system built end-to-endfor a customer that can be easily implemented into a current business process.
- Terminal: The electronic devices used for printing tickets, managing payouts and checking results.
- Ticket Sold: A ticket sold refers to a lottery ticket that has been purchased and accounted for in the sales process. Ticket sales data is important for prize calculations, revenue, and reporting.
- Triple: When the same digit gets repeated three times in a three-four digit number is known as a triple.
- Unclaimed Numbers / Unclaimed Prizes: Unclaimed prizes are winning tickets that have not been claimed by a player before their expiration date.
- Underdrawn Numbers: The cold numbers or overdue numbers are also known as underdrawn numbers.
- Validation: When any player wins a lottery, the tickets are validated to confirm the winnings. This process is known as validation.
- Wager: A bet is also known as a wager.
- When Drawn Numbers: A lottery glossary of terms refers to the timing and process of selecting winning numbers in a lottery draw. The drawn numbers are determined during the scheduled draw event, and the outcome is used to identify winning tickets.
- Winning Lottery Tickets: Winning lottery tickets are tickets that match the drawn numbers and are eligible for a prize. These tickets must be validated, and winners must claim their prizes within a specified period before expiration.
- Winning Odds: The winning odds are calculated using the lottery’s guess range, how many numbers can be selected, and the number of combinations that can be produced from these.
- White Label Solution: A product that is sold by one company to another company to be re-branded as their brand.
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FAQs on Lottery glossary of terms & lottery terminology
1. Can you perform API integration of international lotteries in the online lottery system?
Yes. We at GammaStack provide you with API integrations of all the major lotteries, such as Cash 5, Texas Two-Step, SuperLotto, Mega Million, PowerBall, and many more.
2. What is lottery terminology?
Lottery terminology refers to the set of common online lottery terms and lottery definitions used to explain how lottery games, platforms, and processes work. It helps players and operators understand concepts such as ticket types, draws, jackpots, odds, payouts, and compliance, making lottery systems easier to navigate and understand.
3. What are the lottery terms for beginners?
Some of the most common online lottery terms include:
- Advance Bet
- Annuity
- Bonus Ball
- Cash Option
- Draw Machine
- Jackpot Rollover
- GGR (Gross Gaming Revenue)
- NGR (Net Gaming Revenue)
- White Label Solution
- Turnkey Platform
- Omni-channel
- KYC/AML Compliance
- Courier Model
4. What is online lottery definitions?
Online lottery definitions are explanations of terms and concepts specific to lottery games played on digital platforms. They cover elements such as ticket types, draws, jackpots, odds, payouts, subscriptions, and regulatory features.
5. Do you provide an online lottery platform with mobile application development services?
Yes, we provide feature-packed hybrids as well as native apps that align with your business needs and goals.
6. What are the advantages of investing in lottery mobile applications?
Mobile apps are great for your customers as they provide 24/7 access to lottery games and jackpots. In addition to this, these also provide an outstanding user experience on smaller screens, which allows users to play their favorite games on the go, from anywhere, anytime.
7. Can GammaStack help me with licensing?
Yes, we can. We provide our customers with complete support for licensing as well as regulatory requirements.
8. Do you provide lottery software solutions that are RNG certified?
Yes, the online lottery platforms by GammaStack are RNG-certified.