One of the most popular forms of gambling in the UK is the national lottery. In stores, we see millions of pounds exchanged on this Great British pastime, but is online lottery still a viable revenue stream for affiliates? We’ve got expert comment and industry knowledge on hand to decipher if this is the case.
Driving traffic and growth for lotto affiliates
The emerging markets pose an interesting proposition for lotto affiliates, however there’s still a lot to be made within the UK. This sort of soft gambling appeals to a lot of players, with the charity aspect also playing a role in those that choose to take part. Around 22% of lottery players gamble online, which is on the rise. While this may seem small compared to other gaming options, it is growing steadily.
Lottery seems to sit far apart from the world of casino, sportsbetting or bingo within users’ minds. This presents both advantages and disadvantages, as this user base can be untapped when it comes to other gaming verticals. The trick to appealing to this audience is to understand what they’re looking for.
This in turn allows lotto affiliates to grow much larger than their small pool of operators. There are different compliance issues to take into account with each of these genres, so ensure you’re sticking to the letter for each. This will allow you to think long term and stay out of the reach of the UKGC’s fines.
An upward growth path
Lawrence Wilson, Head of Acquisition at LottaRewards comments on the state of the online lottery affiliate market here exclusively for Affiliate Insider “The online lottery industry, whilst most definitely impacted by the growing shift towards a more regulated global market, is still on an upward growth path that insiders don’t foresee slowing down anytime in the near future. As with other gaming verticals, there is a move towards diversification in order to extend and increase customers’ lifetime and value, but the core offering of selling lottery tickets is most certainly not a fad that will become passé.”
When asked about regulation’s impact on other gaming genres, he said “As with other gaming verticals, regulation has had, and will likely continue to have, a profound impact on the way lottery providers do business. Operating in regulated markets will obviously be a key focal point for licensed operators, although there are many other new markets to explore as well. Africa, Asia and Latin America are all potentially as lucrative as the more established markets of Europe, Australia and North America.”
Within the lottery market, there’s definitely a larger trend towards bringing users in on one product and then cross selling them on another. Wilson stated that “In terms of affiliates being able to cross-sell their databases or traffic sources, my opinion is that this is well worth some serious consideration (and a bit of testing). Casino and poker don’t appear to be the most natural of cross-over sources, but bingo and sportsbetting customers definitely exhibit similar interests and behaviours.”
He then continued “That said, with the aforementioned diversification beginning to gather momentum, expect online lottery operators to continue adding other products (e.g. casino games, instant win games, sportsbetting, etc.) to their mix in a tireless effort to appeal to a wider audience and maximise revenue potential.”
This expert commentary certainly gives us a lot to think about. The regulatory aspect definitely means that there is opportunity to become involved in the lottery market in the UK and beyond. This could create a lot of open niches for lottery affiliates who look to get involved.
An awareness of the lottery industry is very much needed for those that want to capitalise on this traffic. You can’t assume that you know who your target market is, as the spread of lotto loving Brits is a varied mix. Wilson makes an excellent point that in order to properly cross sell, you must know what products your users are open to.
There’s still very much value to be had in this sector, just think wisely about your audience and your portal. If you’re looking for more insider tips, then join us at the upcoming AffiliateFEST event for sneak peeks into how you can growth hack your affiliate business.