Operators in the lottery messenger services industry need to be more pro-active, according to Isle of Man Gambling Commission chief executive Steve Brennan.Speaking in a lottery forum in Sofia,
Bulgaria, Brennan urged the industry to take the initiative and consider forming its own trade association that will demonstrate their ability to self-regulate, Isle of Man News reported. Brennan said this move would convince other regulating bodies that lottery messenger services operators were mindful of regulatory issues and future legislation.
Lottery messenger services, considered one of newest and fastest growth areas in the online sector, offers customers to play in lotteries around the world by purchasing tickets in those lotteries on the player’s behalf or by allowing customers to bet on the winning numbers. The bets are insured to provide the same amount of pay-out if those numbers win.
Industry experts believe lottery messenger services sector has a bright future ahead, but operators need to start planning for possible increased regulation and interest in the industry.
Currently, ticket-purchase operators are not required to hold a gambling license, unlike insurance-model operators that need a gambling license to operate. However, industry experts said further regulation of the industry was inevitable, and it’s only natural for the lottery messenger services sector to be prepared for any new legislation that’s coming their way.
“Changes in lottery rules have led to a jump in jackpot sizes and a massive increase in the numbers of customers,” said Stuart Ballan, head of sales for Middle East of payment processor Counting House. “As we saw earlier in the year when the Powerball Lottery rolled over from $950 to $1.5bn in just 4 days, there was a tsunami of customers wanting to play, so much so that it caused operational problems for some brands, whilst giving huge potential for retention and repeat play.”