Lottery business

The lottery industry is the fast-growing and highly profitable, so it provides a great opportunity. This field of activity is characterized by constant gaming development and movement forward. Operators are constantly offering new games and additional bonuses in order to retain old players and attract new ones. Huge multibillion national lottery companies may look unreachable, but with right partners and right strategy even a small company can flourish. Let’s go through all key aspects of successful lottery business - from targeting your audience and sales model to software solutions. We are not trying to get some sort of guide how to fund and operate lotteries in different countries and states.

The first thing you should do in any business is to understand who is your customer. It does reduce the number of your players but allow you to provide them better games, services, payment methods and bonuses. This will make you more competitive in the market and provide a higher return on investment. For example, 6 out of 10 Nigerians use feature phones. Moreover, the majority of smartphone users are in large cities. Many of these people don’t have access to electronic money either. If your audience lives in medium or smaller towns, it will be crucial to use alternatives to classic online distribution (website, mobile app) like USSD-lottery or retail lotto/betting shops.

Business plan

There are a lot of variables to consider: list of lotto games, unique design, taxation, distribution, profitability, ideas for further business lottery development. This all seems very confusing, but the key thing you should focus on is unique selling proposition. Unique selling proposition together with your corporate identity and branding will set you apart from competitors. As a part of business planning, funding planning must also be considered. A financial roadmap will make clear how much do you need to start business and sustain its growth. A final document is a good help in communication with partners, investors, banks and government.

Sales model
Online vs offline.png

There are 2 major way to distribute lottery tickets: online and offline. Classic online model usually requires good internet infrastructure, smartphones and electronic money. If the majority of your audience has access to these then you should use online sales model as the cheapest one. Unfortunately, the developing countries have issues with all three things. But it doesn’t mean that you should use cash only and printed coupons. The lack of smartphones can be solved by feature phones and ussd requests (ussd lotto). No electronic money then use airtime instead or use cash to deposit and withdraw in you betting shop network. This approach applicable not only for small companies. For example, in some Nigerian and Niger lottos USSD-request is the usual way to make a bet. Online lottery business in Nigeria is a good example of trade-offs with limited infrastructure.

Funding your business

In order to have a real business plan you have to think about funding. Try to include all possible costs: legal and licensing fees, software/hardware cost, bonuses, salary, rent and utilities. Once you have determined the amount of funding required you are free to choose a business partner, investor or bank for the loan.


Gambling is regulated by governments around the world, and most require operators to have licenses. Some operators from developing countries make their first steps without license, but the best idea will be to obtain a local license first. It will help you to sustain a growth of your company and think big. Review the licensing requirements of the jurisdiction in which your company will operate.

Software solution

It is really hard to develop and support you own lottery platform. You need to think not only about infrastructure like security, payments and user management, but also about content like games, promotion and bonuses. If you have any ideas of a new game which will shake local market, the ideal provider should be ready to implement it. That type of flexibility you should look for. In the most cases the cheapest and fastest way will be to select a reliable software provider. A provider should be flexible enough to adapt to your local market and to your market strategy. Our company provides all types of services from free initial consultation to customization and adaptation of software to your need. We would like to build a successful business with you as a partner.

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