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Online Lotteries and the Affiliate Opportunity

Online Lotteries and the Affiliate Opportunity

As more online gambling niches become saturated, affiliates are looking to additional verticals for opportunities and growth. One that has been relatively successful in Europe is the online lottery space.

Online lotteries are also gathering pace in some US states, and it’s likely that more will get in on the action as regulated gambling continues to roll out across the country.

But what are the opportunities for affiliates? And what are the key differences between official lotteries and betting on lotteries?

Keep reading and we’ll reveal the answer to both of those questions.

The difference between official online lotteries and betting on lotteries

There are two types of lottery products that affiliates can promote to their audiences – official online lotteries and brands that offer betting on lotteries.

Official online lotteries are usually run by operators acting on behalf of the government or state and allow players to purchase tickets to draws via their computers, smartphones, and tablets.

Betting on lotteries works a little different and sees players bet on the outcome of the draw. The game is played in the exact same way – players pick the numbers they think will be drawn – with the same prize tiers and values available as when playing the official lottery.

The main difference is that the bet is placed with the online gambling operator and not the official lottery provider.

The main reason betting on lottery has emerged as a major vertical is that it allows players from around the world to play for some of the biggest draws in the world, draws that often require players to be located in a specific country or state to enter.

The pros and cons of partnering with official online lotteries

As an affiliate, partnering with official online lotteries comes with several benefits. Perhaps the biggest is that you become an official partner of an established and trusted brand – especially if you’re working with the state lottery.

This brings a lot of prestige, and – subsequently – trust from your target audience.

Another benefit of partnering with official online lotteries is that the sector is still relatively untapped. As one of the early players, you’ve got a huge opportunity to make an impact and build a significant market share with less competition.

However, partnering with official online lotteries also comes with its share of drawbacks. Perhaps the most significant is the limited number of brands you will be able to promote – only a handful of US lottery operators offer online ticket sales and even fewer work with affiliates, for example.

Another challenge is commercials. Lottery players simply don’t wager as much as online casino players and sports bettors so the earning potential can be a lot lower.

The pros and cons of partnering with betting on lottery brands

The key benefit to partnering with betting on lottery brands is the sheer number of “draws” you can offer your players. The best operators run “draws” for all of the major lotteries from around the world from the EuroMillions to the New York Lotto.

Betting on lottery operators also tend to offer online casino games, so there is the potential to cross-sell and open up additional earning opportunities.

Like official lottery partners, betting on lottery partnerships do have some drawbacks.

Consumers might not trust the brands and the draws available and there is also an education process that needs to be done so that players realize they are not entering the official draw.

Regulation is also a concern, with some regulators looking to clamp down on betting on lottery operators.