Covid-19 and Its Impact on the Global Lottery Market
The sudden outbreak of the pandemic has had adverse effects on all markets globally. The lottery market is no exception to this. The lottery market players are finding innovative and unorthodox solutions to the challenges faced during the Covid-19 pandemic.
Covid-19 and how it has impacted the lottery industry
The sudden and unexpected stop on non-essential businesses due to the Covid-19 pandemic and the ongoing fight to control it is having an adverse impact on the lottery industry across the globe. The industry has been hit with a three-way impact where countries have been locked down, and there has been suspension of lottery sales, considering that they are non-essential and are high human contact places.
In the short term, the fate of the lottery market will depend on the success of current efforts to control the spread of Covid-19 and to minimize the count of cases. In the long term, return to normalcy will most likely be based on a unified global action to the Covid-19 threat, particularly in view of the potential development of a vaccine for Covid-19.
The current macroeconomic view is almost gloomy, with the OECD (Organization for Economic Co-operation and Development) stating that the risk is to the entire world economy. China, for example, has most probably cut in half the economic growth for Q1 2020 when compared to Q4 2019. The same negative outlook encapsulates the Global Gaming's gambling forecast for 2020, which now is lower compared to pre-outbreak estimations.
In countries or regions where lotteries continue to operate even through the pandemic, the performance of the more traditional games and instant lotto products have stayed robust in comparison to pre-pandemic times. But, businesses that largely rely on revenues from sources such as casinos and more social gathering based activities have taken a hit.
Market Transformations Due to Covid-19
The focus of lotteries will likely go more towards eGambling and eSports, considering the restrictions that the pandemic has brought upon society. From an operational standpoint, things are not expected to change for establishments like casinos and gaming halls. It is more probable that the already-in-place restrictions and safety protocols will only be refined to safeguard the public better. For the longer-term perspective, most gambling associations and large establishments have already begun to form contingency plans for what may come.
Digitization to Overcome the Pandemic Challenges
The active use of digital marketing by Lottery businesses is one of the primary reasons for the boom in the market. Furthermore, online presence and apps where one can gamble are becoming one of the key drivers for the market in current times. Growing spending capabilities due to the reduction in non-essential businesses remaining shut are also adding to the spend on gambling at a global level. While the use of social network marketing for lottery promotions will provide significant potential for success, the socio-economic influence of lotteries will threaten the success of market participants.
In any area of the world, the online platform allows customers to participate in lotteries. Operational costs are reduced by these online platforms that lottery companies can use, and it also helps reduce other overheads when compared to the physical gambling that we commonly see. Another benefit that these technological advances bring to the table is that it dramatically reduces the human resources needed to operate a large gambling enterprise. Governance is also made easy since the system records all transactions; it makes for a straightforward process when dealing with regulators or government agencies. The most significant benefit of all would be that these online lottery businesses can be operational practically all year round and for the entirety of the 24 hour day.
Key player strategies
Market players have begun to offer customers integrated, comprehensive and robust lottery operational consulting services. These developments are expected to create enormous opportunities for the lottery market to grow. Large players in the market like Dusane Infotech are supplying solutions for the online lottery; they do this by providing the underlying tech to these lottery businesses.
The lottery market continues to grow despite all impacts, and this further illustrates the market's strength: new technologies, innovations, and more spendable income project the market to grow even more now in the future. The increasing importance of the gaming and gambling aspect to entertainment further solidifies this prospect of market growth.