Strong Growth of Worldwide iLottery Market Continues …and More!

Strong Growth of Worldwide iLottery Market Continues …and More!

Strong Growth of Worldwide iLottery Market Continues

The monthly iGaming Dashboard of H2 Gambling Capital and iGaming Business continues to show strong growth in the iLottery vertical.

In 2014, various state lotteries realized an iGaming gross win of €3,003 million (up from €396 million in 2005). By 2020, the total iGaming gross win of state lotteries will add up to an estimated €6,780 million.


Reform of German Gaming Legislation Will Impact State Lotteries

Following a series of adverse decisions by the Court of Justice of the European Union, reform of German gaming legislation already appeared unavoidable. Other parties are now adding to the pressure:

“At a symposium held in Berlin last week by the German Association of Internet Businesses (ECO), it became apparent that most industry representatives, legal experts and stakeholders want the same thing: a  liberalized model without any restrictions on product verticals or the number of licenses available, and a workable tax rate based on gross gaming revenue, as proposed by Hesse Minister of the Interior Peter Beuth.”

Change, moreover, may come sooner rather than later:

“Hans-Jorn Arp, Parliamentary Secretary of the Christian Democratic Union in Schleswig Holstein and a major critic of the current State Treaty, summed it up by stating: ‘2016 will be a year of discussion, and 2017 a year of decision.’”

It seems doubtful, to say the least, that any meaningful reform will fail to have a significant impact on the various German state lotteries. How will they cope?

In any case, liberalization of the German gaming regime would quickly quash the substantial illegal market, according to at least one researcher.


Scientific Games Replaces GTECH as Danske Spil’s Lottery Systems Supplier

Scientific Games achieved a major coup in Denmark by becoming Danske Spil’s new lottery systems supplier, replacing Lottomatica subsidiary GTECH, which had held the contract for the last 26 years.

Scientific Games also won a five-year contract for Danske Spil’s interactive player account management (PAM) solution.

“Scientific Games has demonstrated that their integrated systems technologies, expertise and quality of service meet the complex business needs of Danske Spil for secure lottery and gaming operations. We believe that a new open architecture system, advanced lottery numbers games and unified PAM solution will play an important role in our overall mission to increase revenues in the coming years,” Danske Spil CEO Hans Christian Madsen said.


Novomatic and Czech Investment Firm Seize Control of Casinos Austria and Austrian Lotteries

Meanwhile in Austria, Novomatic and Sazka Group, who represents Czech investment groups KKCG and EMMA Capital, are set to take over Casinos Austria and Austrian Lotteries.

Under the agreement, Novomatic and Sazka will serve as shareholders of the brands, with plans in place to use their industry experience to expand both of the businesses.


UK National Lottery Monopoly Still Appropriate?

Last week, we already reported on increase in sales, but decline in UK National Lottery draw participation.

According to gaming consultancy firm Regulus Partners, this development is caused by a combination of higher ticket prices, lower odds of winning, but significantly higher jackpots, leading them to question the continuing appropriateness of the National Lottery monopoly:

 “It is a good rule of thumb that the greater the level of game cost and volatility, the ‘harder’ but less popular it becomes. To focus on spend over participation is a logical business decision, but it could put stress on the assumption that the National Lottery monopoly exists to cater to a mass market separate from commercial forms of gambling.”


North American Lottery News Roundup

Loto-Québec reported significantly higher lottery sales (+11.4%) during Q3 of 2015, stating that “[t]he many large jackpots offered by Red Cross Canada lotteries and steps to increase winners’ visibility explain that excellent performance. In addition, there were more prize payouts; 58 prizes worth $1 million or more were awarded (against 38 for the same period during the previous fiscal year).”

The Michigan Lottery reported (p. 44) a strong increase in iLottery sales and net win in 2015 compared to the previous year. Last year’s sales of $146,189,761 and net win of $18,528,092 all but eclipsed 2014’s $3,914,115 in sales and net win of $556,451.

Political wrangling, however, ended (for now) online lottery sales in the state of Illinois.

Across the US, the increasing popularity of higher-priced instant lottery tickets (between $10 and $30) boosted growth in the segment as a whole.

Another huge Powerball jackpot, worth $291.4 million, was won by a lucky player in Florida.

A new Pennsylvania Lottery app now allows players to scan instant tickets to check for winners.


Other News

European Lotteries (EL) paid a Dutch university professor to write a critical opinion of another researcher’s match fixing study.


The Romanian National Lottery is temporarily suspending pool betting services due to recent changes in national gambling legislation.


ZEAL’s MyLotto24 subsidiary was granted a €9.6 million tax refund in Spain.


French lottery and betting company La Française des Jeux (FDJ) became the city of Paris’ first corporate partner in its quest for the 2024 Olympics.