A White Paper By LocusPlay

Mobile Lottery and Emerging Markets

3 October 2013
The mobile and the telecom industry has developed in to a very dynamic and phenomenal
revolution today, it has moved beyond its fundamental role of a communication device and
has graduated into becoming an identity of the individual. Today, a mobile phone is an exten-
sion of the users persona; it depicts their interests, attitude, feelings and lifestyle.
The innovation and continuous efforts to delight
the mobile users market has resulted into a new
era of mobile phones that play games, music, mov-
ies, browse internet, banking etc. Thus, there exists
a vast world beyond voice that needs to be explored
and tapped as the entire cellular industry is heading
towards it to provide innovative options to the cus-
tomer. This has resulted in a Smartphone with hi-
speed Internet and applications- One such value
addition to the mobile phone users is the Mobile
Lottery.
Now players can access and play lottery via mobile
phones without the hassle of going to lottery
terminals/stores to buy lottery tickets.
This white paper provides an in-
sight of the trends in emerging
markets for mobile lottery.
(PR web UK) September 2, 2010
State lottery provides an anxious to explore new
distribution channels, with US lottery sales from
traditional outlets in decline. The upshot is that
several lotteries are in latter stages of discussions
with mobile technology providers with a view to
launching mobile lottery services 2011
Mobile lottery being the most discussed form of
mobile entertainment services today offers great
scope for growth as it dissolves various barriers to
market development. Lottery has always been a
lucrative business, with the UKs betting office li-
censes association (BOLA) estimating that global
gaming in all its forms is worth around about US$
1 Trillion.
However, lottery services via the mobile are rela-
tively a new phenomenon, with their deployment
plagued by a plethora of cultural and regulatory
hurdles. Nevertheless, some analysts have argued
that such services could well be the Killer Apps
that mobile has been seeking and that m-lottery
could well become a multi-billion dollar business.
In either event, there is a strong market for mobile
lottery services.
Types of services
The organized gaming sector, while easy to con-
sider as a whole, is in fact made up of at least three
distinct sectors viz. casino and lotteries.
locusplay
A WHITE PAPER BY LOCUSPLAY
www.LocusPlay.com
A White Paper By LocusPlay
We emphasize on mobile lottery domain and busi-
ness hence would derive at facts and figures per-
taining to mobile lottery services only.
Casino
In appearance and user experience, this is very
much like the current cop of mobile games with
colorful graphics that allow the user to play poker,
roulette, slots, black jack etc using their mobile de-
vices.
Online and Mobile Lotteries
More than 90% of the adult population of UK and
US has at times played a lottery (in its traditional
paper form) at least once, (with around 60% of
them playing lottery regularly). Coupling this huge
market for lotteries with the immediacy and pene-
tration of the mobile phones is a logical and lucra-
tive proposition, both for existing lottery operators
and alternative providers. Juniper a market re-
search company-, believes that lottery services will
explode across all regions within the next 5 years
and will generate vast revenues.
As far as emerging markets are concerned Africa
online lottery markets rose from 7.6% to 11.8%
since 2011
Source: W L A 2012
The estimation claims that mobile lottery to
surpass US$ 48 Billion by 2015.
UK Ladbrokes was the first major betting company
to announce launching of a mobile lottery. Current
market is virtually untapped and several market
research agencies are pointing to mobile lottery as
a dynamic and lucrative market in the future.
Worldwide revenue for gaming on mobile phone is
likely to reach US$ 25 Billion by 2014. Lottery
revenue from mobile phones alone is expected to
reach slightly more than US$ 48 Billion by 2015
(Estimated by Alexander resources)
Mobile Lottery Market
(PR Web UK) September 2, 2010
State lottery providers are anxious to explore new
distribution channels, with US lottery sales from
traditional outlets in decline. The upshot is that
several lotteries are in latter stages of discussions
with mobile technology providers with a view to
launching mobile lottery services
The largest geographic market throughout the fore-
cast period is estimated to be Asia Pacific, although
it should be noted that the most active individual
country market for mobile lottery is currently the
UK. The second largest market is estimated to be
in Europe, with the other three geographic regions
a considerable way behind. Europe and Asia Pa-
cific are estimated to contribute similar revenues
over the forecast period, although with different
business mixes. Asia pacific is forecasted to grow
from US$ 18 Billion by 2014 which sore from US$
966 Million in 2006 to US$ 12.8 Billion in 2012
and presently nearing US$ 16 Billion with the
European market growing from US$ 950 Million to
US$ 19 Billion in 2013.
The basic drivers in to market are
Desire to gamble
Growing disposable income
Technology and innovation in telecom and IT
industry
Availability/ Convenience/Access to the tech-
nology and channels
Increasing mobile penetration
Mobile user profiles and privacy.
Mobile Lottery
The lottery player can easily play lottery on their
mobile phones without Internet and in a very few
simple guided steps.
A White Paper By LocusPlay
SMS Betting
The lottery can be
played either by sending
a formatted SMS to the
pre specified lottery op-
erators number.
Playing Lottery via USSD
Here the lottery player
can access the lottery
application by dialing a
pre-assigned code.
This code leads to an
interactive menu of
games that can be played by selecting options that
appears on the screen of the mobile phone.
The mobile operator and mobile lottery center co
ordinates and offers the games to be played, date
and time of the draw etc details to the lottery play-
ers. The player gets an acknowledgement message,
soon after the draw through automatically gener-
ated SMS.
The lottery player can also access the winning
numbers, play history and credit balance through
this facility.
Mobile lottery on Smart phones
It is a customized mobile lottery platform. That has
graphical user interface (GUI) designed to achieve
maximum usability at ease giving the lottery play-
ers a real time experience on their mobile devices.
An interactive platform
that guides and en-
hances the lottery play-
ing process with lot of
ease. Undoubtedly, this
is more sophisticated
method that offers mo-
bile lottery benefits tremendously from higher
bandwidth and improved handset capability that go
with Android phones complimented with 3G and
4G internet services
Market Growth Promoters and Drivers
Some of the key drivers to playing lottery could
fundamentally be the inherent desire to try luck in
some sectors of the population, rapidly advancing
mobile network and handset technology; the inher-
ent advantages of mobile communications in terms
of convenience and pervasiveness; and the contin-
ued growth of telecom subscribers base, particu-
larly in the Asia Pacific region.
Nonetheless, the usability and access to generation
next mobile models and Smartphone to the tech
savvy people in emerging markets are attracting
enterprises to envisage the scope of business in
these regions.
Region 2006 in Million US$ 2013 in Million US$
Rest of the world 40 4105
South America 34 3110
Europe 950 9130
Asia Pacic 966 11818
North America 0 5910
Total 1991 34073
Total revenue from the mobile lottery. Regional forecast 2006-13 (Million US$)
A White Paper By LocusPlay
Technology and Advantages
Mobile lottery technology enables to play lottery
on the mobile phones anytime and anywhere. Mo-
bile lottery as an advanced system based on SMS/
GPRS technology, can be implemented in lottery
enterprises that already run lotto games in tradi-
tional style. Mobile lottery will be one amongst
other sales channels for already established lottery
enterprise
Mobile lottery can be easily incorporated with the
centrally hosted without any change in the existing
operations or without incurring exuberant costs.
Sales database with the tickets sold via mobile
phones is automatically updated along with the
tickets sold via terminals/outlets and creating a
unique database for the draw updates.
Benefits of using GPRS include fast access time,
high speed, less cost for most services, global ac-
cess, user - friendly, real time interactive and over-
all wonderful lottery playing experience.
Constraints
Lottery is a regulation constrained industry. Gov-
ernment bodies at all levels have taken interest in
the regulation of gaining in the public interest.
In order to encourage responsible lottery playing,
both Government bodies and the industry have
sought to establish balance between regulation and
market freedom.
Linked to regulation is age verification. The whole
industry is keen to prevent underage lottery playing
practice, which is a significant risk because of the
large base of mobile users. Apart from ethical con-
cerns, the lottery service provider is intimidated by
the daunting prospect of an under-age betting scan-
dal that could damage the entire industry and limit
its takeoff. Therefore, robust age verification is the
cornerstone of all new lottery- related legislation
and self-regulatory codes.
Other factors that may contracts the scope are
branding and gaining trust of customers locally.
Lottery players are more likely to trust lottery serv-
ices offered through a recognized brand or a well
known operator. In turn the brand owners want to
retain brand value, so are reluctant to do anything
that they feel may diminish it. This in itself will
act as a constraint to the overall industry. As indi-
cated earlier, technology is both an enabler, in any
specific market delays can become a constraint on
the path of growth.
A further technology constraint may be pointed on
application development. Designing mobile lottery
is severely challenging than it appears, demanding
good quality graphics, rapid response, security for
payment (including restoration after signal loss).
Luckily, constant efforts are being channelized to
address these issues and a new era of more stable
and unwavering technology is available today.
Conclusion:
The market status at the moment is fairly evenly
balanced for both industry growth promoters and
the possible impediments. The participation of in-
dustry pioneers across lottery and betting enter-
prises and technology providers the balance will
swing emphatically to the benefit of the market
growth promoters, mainly for the online and mo-
bile lottery business as the mobile channel has
many inherent advantages for the provision of gam-
ing services. In spite of some disadvantages, it
paves a way for much more innovations and im-
provements.
Regulatory restrictions notwithstanding, the poten-
tial for mobile lottery revenue is substantial. The
services with respect to mobile lottery will generate
revenues of more than US$ 48 Billion by 2015 or
nearly one third of all mobile gaming revenues.
Other perspectives to the call infers that should
regulators in countries such as US and China be-
come more liberal in their attitude towards these
services, then revenues could far exceed the esti-
mates. Considering the scale of accessibility to
mobile devices and desire of many lottery operators
to make good of available opportunity, then poten-
tially the resulting sales could be multifold higher.
A White Paper By LocusPlay
As it is, lotteries will be the most successful forms of mobile gaming services, accounting for around 40% of
all mobile gaming revenues (or nearly US$ 48 Billion) by 2015. Already, mobile lottery services are up and
running in a number of countries, and their popularity is expected to mushroom in the medium term. Need-
less to mention emerging markets offering green patch for the technology providers and lottery enterprise
facilitators. Right time has arrived; right actions need to be taken.
About LocusPlay
LocusPlay is a suite of integrated applications that work together to seamlessly manage and
deliver your Lottery games to your customers, agents, and game houses.
Your perfect technology partner - Deliver your lottery online and offline through Mobile,
Tablet, Kiosk, Web SMS & USSD
LocusPlay, Inc.
95 Chestnut St, 3rd Floor
Providence, RI 02903
USA
+1(401)400-1183
info@locusplay.com
www.LocusPlay.com
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