India’s online lottery is on the rise, but governments are prepared to make the digital transition

India’s favourite game is still lottery, which becomes more apparent during the coronavirus pandemic. People turn to things that provide hope and give them control in times of crisis. Online lotteries in India are now more important than ever for fostering optimism among players.

Only a fraction of India’s entire market

Although it is the most popular type of gambling in India, there are not many government statistics on the industry. However, available surveys and studies show a boom industry, especially for state lotteries. Recent analysis of India’s lottery industry highlighted the state of the sector and the huge potential of its vertical market.

ENV Media’s study of the market, which analyzed it based on legal, demographic and technological requirements, revealed that more than 30% of all organic search results were for “lottery” terms. The top 30 keyword combinations generated more than 8,000,000 monthly include searches.

According to the report, up to two-thirds gamers prefer online and paper lotteries to casino or other betting. The report also included aggregated search data from OnlineLotteries. In users who visited the online lotto page between January 1 and July 12, 2021.

Age-wise, players between 18-24 years are responsible for 25% of all registered users (24.96%), while those between 25 and 34 make up 31.44% of all users (31.44%). It was also revealed that older players are more loyal to the lottery.

“Together, young adults under 34 make up 56.40% of our registered users. The analysts stated that although this statistic is not applicable to regular lottery players, it does apply to online lottery players. However, the above reference to players of any age are statistically valid.

Indian lottery operators have a huge market

The digital age is the best time for the lottery industry. India is the second-largest mobile gaming market in India, with an estimated 760m internet users. More than half of these people play their mobile games on mobile devices.

For context, Indian government-run lottery revenues were approximately Rs 50,000 crore per year. However, these figures have fallen to Rs 15,000 crore due to slumps in sales, illegal competition, and other factors. Researchers at ENV Media found that only a small portion of the market is represented by the “real” online lottery.

Online lottery operations in India involve selling tickets through retailers. The entire operation is controlled by a central server that is controlled by the government. Online lotteries offer more options for tech-savvy players than paper-based lotteries. However, times are changing. Other factors such as ticket prices, availability, technology usage, and jackpot size now influence “the subgroups who find one lottery more appealing than the other”.

According to ENV Media’s study, “Effective online lottery distribution would accelerate sales and payouts even though it leads to slightly higher lottery tickets and a relative technological barrier for some users.” Many states need to reconsider their position on online and mobile lottery. If they wish to recover their losses and plan for the future, Indian legal lotteries will need to change.