Brexit referendum creating more uncertainty
With the Brexit referendum creating more uncertainty about global economic growth, and following on from an already sluggish global economic recovery since 2008, more and more consumers are likely to turn to lottery products in the hope of improving their current financial situation. This, combined with the fact that the lottery market is already a reported $218billion industry, could create some massive opportunities. Without a dominant supplier in the market, it could be ripe for disruptive new products. Richard Clarke, Chief Product Officer of Link2Win, explains.
The dream of hitting the jackpot has a powerful, universal, appeal which crosses national and cultural boundaries. Almost everyone has numbers that hold a personal significance, or which are associated with good fortune, and this is one of the main drivers behind the popularity of lottery products. Factors which create uncertainty about future economic prosperity cross boundaries too – so the fallout from Brexit, and the desire to improve one’s financial position, are likely to add further driving forces behind the appeal of lottery products.
Part of the continued expansion of the lottery market is, of course, similar to any other leisure betting product, and is fuelled further by the continuing rise of mobile and digital products. The accessibility to now play your favourite numbers or scratch cards on your smartphone device is a huge market driver. Many within the lottery industry believe that over 50% of all games played online will be via mobile devices within the next two years. Sure, there are challenges for lottery marketers. As a business, it is still entrenched in retail sales and distribution channels. Lottery needs to reduce the barriers to digital play and player verification, develop a better understanding of player data for segmentation using lifecycle remarketing and, of course, figure out how to navigate restrictions in the various app stores and on social media platforms such as Facebook.
Therein lies the opportunity
The perfect storm components of disruption and innovation are aligning. The iGaming industry and its ecosystem are ideally placed to drive this transformation within the lottery market. Why? The iGaming sector has overcome many of the challenges associated with a business that was grounded in the retail distribution of real-money gambling products. It has dealt with regulated market requirements in the supply chain regarding compliance, both technically relating to the platform and corporate social responsibility, and player protection. Furthermore, as an industry it has over 16 years of operating omni-channel leisure and betting content to create accessibility, anytime and anywhere. If a player wants to play on-demand or a scheduled event, they can use their device or visit a land-based establishment.
Innovative new lottery products can allow existing iGaming operators the ability to further complement their marketing acquisition strategies by adding new and accessible life-changing games to target this growing, and largely untapped, player market segment.