Government Lotteries Challenged by Online Retail

Government Lotteries Challenged by Online Retail

Around half of all States in the Union hold the monopoly on paper-based lotteries, a study reveals. However, easy access and ample choice makes online lottery retailers grow as a preference among mobile users. Public authorities would do well to digitize more lottery schemes and regulate the market across the nation, experts conclude.

Top Ranked Online Lotteries Gain Popularity in Most States

Most desi consumers are familiar with the sight of street lottery vendors and packed ticket stands selling some of the cheapest tickets one can find. An industry study reveals, however, that a growing segment of desi users has been swayed by the possibility of playing some of the most reputable global lotteries online.

Mobile-first consumers with a busy lifestyle have driven up the market shares of online lotteries across many States. Giving access to Powerball, Mega Millions and other famous lotteries, online intermediaries make tickets slightly less affordable to some players. Then again, jackpots tend to be more consistent and this makes them more competitive when compared to local lotteries.

The growing awareness of internet retail options has put some pressure on government lotto games all around Bharat. Although paper tickets are a tradition in many families, younger and more active generations opt for the user-friendly and more exciting mobile experience.

Where Are Most Online Lottery Players From

Maharashtra is decisively the leading state among online lottery players, providing between 15% and 20% of all traffic, depending on the month and Bumper jackpots around the World. Experts note, however, that most of the states that have no government-run lotto draws tend to seek an alternative online. The Top 15 in this ranking is dominated by such states, adding up to over 56% of the entire market value.

The top 6 are completed by Tamil Nadu, Telangana, Karnataka, West Bengal and NCT Delhi. Notably, these territories include seven out of the eight Tier-1 in the nation. As a rule, well-developed states and cities prove that online consumption habits are among the main factors to drive online lottery retail numbers up.

States with Paper Ticket Lotteries (Offline)

While paper-based lottery is still the norm in half the Union, the other half has shown the need to seek alternatives. And when online lotteries are hard to come by, black markets thrive. Authorities often struggle to control illicit channels and tickets are smuggled to neighboring states without a paper-based lottery like Karnataka, Andhra Pradesh, Tamil Nadu, Jharkhand or Bihar, the study continues.

Fortunately, that is not the case in 13 of our States – Arunachal Pradesh, Assam, Goa, Kerala, Madhya Pradesh, Maharashtra, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Sikkim, and West Bengal have their Government-run official lotteries. Ticket sales used to rate quite well, the study points out, until 28% GST was imposed on all luxury and entertainment items in 2017. Lottery revenues shrunk three times in some areas, and small-time retailers were hit again when Covid-induced lockdowns had them shut up their shops.

Despite occasional attempts to impose bans on online games for money, governments realize that the demand for online lotteries is only likely to increase in the near future. As things stand, the choice is between helping India’s lotto industry digitize and adapt to the new age or surrender to competitive foreign operators and back-alley black markets.

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