Reports EUROPEAN LOTTERIES
European lotteries - instant gratification
Lottery is big business. Total turnover for the European lottery and sports betting sector reached €76.7bn with a GGR in 2012 of €34.1bn. There are more than 380,000 Points of Sales whilst the largest lottery activities in the EU are draw based games such as Lotto, EuroMillions or Joker brands
Draw games, offered in all 27 member states of European Lottery Association, saw sales of €49.2bn and a GGR of €22.4bn (66 percent). Te second largest category is instant games with EU sales of €20.2bn and GGR of €6.6bn (19 percent). Sports game categories saw a total GGR of €1.9bn (six percent) whilst EGMs (slots and VLTs) are operated in only a few EU member states and this saw a GGR of €2.8bn (eight percent). Te fastest growing lottery product category
in Europe is Instant Games and this sector has more potential to grow through innovation and development. Until 10 years ago instants were only a small
part of the European lottery mix and some say the catalyst behind the growth was Italy’s re- launch of their instant product in 2004. Te Gratta e Vinci’s instant game sales has surpassed lotto sales with a 500 percent growth rate since 2005, and is the world leader for total instant sales with €9.4bn in 2014. Developed in the US, the instant game is now tying into gaming systems at retail and also
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mobile and internet systems. Lotteries are now refreshing their current instant games and expanding the number of games in their line up whilst adding branded games. So what is the reason behind their success? According to Scientific Games, Gratta e Vinci
implemented an integrated product management approach with marketing, inside sales, distribution, retailer training and in-store product display optimisation. Te lottery has about 34 instant games on sale
in the marketplace at any given time through its 65,000 retailers in Italy. Teir most successful instant products are the Milardario brand which is sold at €5, €10 or €20 price points. Te brand is based on spotlight games
developed by Scientific Games and launched in the US last year. Te €20 Milardario game alone accounted for €2.2bn in sales in Italy whilst in France the €5 cash game operated by Fracaise des Jeux drove €2.2bn in revenue into their business in 2014. Portugal has also seen a huge growth in instant game sales in 2014 with an 18 percent
increase in 2014. Te Santa Casa de Misericordia de Lisboa lottery saw sales of €711m in the instant category compared to €37.3m back in 2005. Te lottery is now rolling out a second family of instant games. Other growth markets in the lottery field
include the development of second chance promotions similar to the scheme introduced by TIPOS in Slovakia which offers players more chances of winning by entering codes from lottery tickets purchased at retail via internet and mobile promotions. Some offer prizes or points for playing. Mobile phone use is also increasing for the
lottery sector in Europe – already 84 percent of European lotteries are utilising mobile phone apps to connect players to the lottery and its products. Some lotteries have integrated social media components into the games and promotions and most lottery operators aim to connect mobile and retail together. Intralot for example has a mobile applications
product line consisting of innovative native applications offering an intuitive user
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