The future is bright for the lottery messenger business but operators need to be the architects of their own success given the likelihood of increased regulation and interest in the industry. That was one of the messages delegates received at the third Global Lottery Messenger Forum (GLMF) organised by payments company, Counting House, which took place recently in Sofia, Bulgaria.

Attracting 140 attendees from 22 countries, GLMF2016 brought together the key personnel in the lottery messenger industry, with 8 companies sponsoring the event, led by Platinum sponsor, LottoYard.

One of the newest and fastest growth areas in online business, lottery messenger services offer customers the chance to participate in lotteries around the world either by purchasing tickets in those lotteries on their behalf or by taking bets on the winning numbers, which are then insured to provide the same amount of pay-out if those numbers win. Jackpots can be huge, running to hundreds of millions of euros, pounds or dollars.

Speaking at the event, organiser Stuart Ballan, Head of Sales, Middle East, of the regulated payment processor Counting House, said that the industry was going from strength to strength. In particular there had been a marked increase in the number of white labels and in sales volumes.

“Changes in lottery rules have led to a jump in jackpot sizes and a massive increase in the numbers of customers,” he said. “As we saw earlier in the year when the Powerball Lottery rolled over from $950 to $1.5bn in just 4 days, there was a tsunami of customers wanting to play, so much so that it caused operational problems for some brands, whilst giving huge potential for retention and repeat play.”

Mr Ballan said that the industry had seen consistent steady growth that was compatible with long term sustainable business but there were challenges on the horizon, consistent with every maturing industry, including new regulation and the possibility of lotteries changing their rules.

At present, while insurance-model operators are required to hold a gambling licence, this is not the case for ticket-purchase operators. However delegates were told that further regulation of the industry was inevitable and it was important that any new legislation was informed and proportionate.

Speaker Steve Brennan, Chief Executive of the Isle of Man Gambling Commission which regulates eGaming in the Isle of Man for both insurance and ticket-purchase models, suggested that operators should be pro-active and consider forming a trade association to demonstrate the industry’s ability to self-regulate through an agreed code of practice.

This would show that operators had given consideration to regulatory issues and could manage the industry for the greater good of that industry, as well as informing any future legislation, he added.

Paul Davis, Managing Director of Counting House, said that historically lotteries had sought to differentiate themselves from gambling but that the lottery messenger industry had put the spotlight on them. “Increasingly around the world, gambling commissions have started to merge with lottery regulatory authorities, nowhere more notably than in the UK. The future is already happening.”

Elsewhere at GLMF2016 there were 12 presentations and 2 panels, driven by 20 speakers and paneilists, with presentations on the lottery ticket purchase model, risk management, the use of call centres, B2B sales, marketing strategies and partnerships. Many speakers reflected on the huge potential for operators to diversify or offer additional gaming products given their expertise in distance sales and extensive database management, instantly returning the discussion to gaming regulation.

Delegates were later able to participate in their own version of the US Powerball lottery with two lucky attendees winning Bose noise reduction headphones.

Commenting after the event Stuart Ballan said it had been another successful year for the GLMF: “The willingness for people to engage and the openness with which they spoke about their successes and challenges bodes well for the future of the lottery messenger industry. There is always a lot to learn in new markets and having a space to share information and network with peers is really valuable. We were delighted that attendance was up 40% on last year and expect to see the number rise again next year.”

GLMF2017 will take place in Cyprus on Monday 13th March 2017.

Photo - The days speakers.