The leadership team of Allwyn International believes that the global lottery sector is at a ‘point of intersection’ driven by digital transformation and societal change.
The thoughts and opinions of Allwyn’s leadership team were published in a report titled “The Future of Lottery: A Game for Change,” produced by the research agency The Future Laboratory.
Allwyn commissioned the report to research broad consumer sentiments, technology, and societal trends to predict future impacts on the global lottery sector. Though opinions were shared, Allwyn noted that the report “should not be interpreted as relating to the future plans for the Fourth National Lottery Licence in the UK”.
Lotteries remain the most popular and common form of gambling across all geographies, important to governments for raising funds for public and civic causes. The popularity of lotteries is underscored as “in the US alone, lottery sales are about €100bn annually, which is more than the combined sales of movie tickets, music, and concerts”.
The lottery market is expected to remain resilient, as H2 Capital projects: “Global lottery sales are expected to grow to more than half a trillion US dollars by 2035, an increase of more than 40% compared with 2025.”
Yet, caution is advised regarding the strong projections, as, alongside other entertainment sectors, lotteries find themselves in the midst of a generational change. The report reads: “By 2030, Bank of America predicts that Generation Z – those born after 1996, will hold more than a quarter of global income.
“The changing demographics of Millennials and Generation Z will challenge the resilience of lotteries, and sector incumbents must promote lotteries as a “champion of purpose – setting them apart from every other gaming subset.”
Pavel Turek, Allwyn’s Chief Global Brand, Corporate Communication, and CSR Officer, notes that an emphasis on social responsibility, transparency, and meaning from younger adults will see lottery brands double down on their commitment to supporting socially driven causes and responsible gaming.
“As regulated businesses, trust is the cornerstone of the lottery industry’s relationship with the public,” he said. “As younger generations of consumers expect more from businesses, lotteries have the potential to double down on being a positive force for change in their communities over the next decade.”
Having established the challenges facing lotteries, the report focuses on ‘future lottery drivers’ examining dynamics that are opening up new opportunities for lotteries and shaping possibilities for the future of the sector. Allwyn determines lotteries’ future drivers as Digital Evolution, Purposeful Gaming, and Generational Engagement.
Although lotteries maintain a strong retail profile, incumbents must accept that digital platforms are no longer just an alternative and have become the frontline of customer interaction.
Optimal platforms can engage with a diverse makeup of customers with the allure of convenience and immersive experiences. As technology advances, so does the opportunity for lotteries to innovate gameplay and distribution channels, with the potential to reach customers through mixed realities and personalized digital touchpoints.
Alongside digital adoption, Purposeful Gaming rises in significance as conscious consumers seek to engage with brands that are socially responsible and transparent. This dynamic mirrors a broader paradigm shift within the realm of entertainment, where the quest for meaningful engagement and positive societal impact goes hand in hand with leisure.
Transitioning beyond their traditional guise as games of chance, lotteries are emerging as cornerstones of social contribution, with every purchase contributing to a grander narrative of community uplift and ethical commitment.
Coupled with this is Allwyn’s focus on Generational Engagement, which underscores the critical need for the lottery sector to align with the ethos of Millennials and Generation Z – consumers who are not only digitally adept but also deeply ethical, demanding authenticity and responsible action from their chosen brands.
“The lottery industry must, therefore, evolve to meet these expectations, crafting gaming experiences that embody the values of these socially conscious generations,” the report asserted.
Allwyn merges the dynamics of the above future drivers in the forward-looking segment of Lottery Futures 2035. The report delves into shifting player mindsets, key industry focuses, and innovations spanning different sectors that are anticipated to mould the future of lotteries.
Technology innovations should enable lottery operators to foster gaming environments that maintain the highest standards of player safety while continuing to innovate in the realms of game design and community engagement. Safety strategies should be rooted in technological advances, providing real-time interventions and hyper-personalised player protection to ensure a responsible gaming culture.
Players will be protected and engaged within a ‘community sphere’, as the report envisions lotteries as platforms for shared experiences, where players are not isolated punters but members of a vibrant collective, engaging in play that fosters collective endeavor and connection with the lottery operators’ purpose.
“Interactive and socially conscious elements can be further integrated into lottery games. Although the cost of lottery tickets is typically low, new features that give players better visibility of where their contributions – or part of them – go over time could introduce another layer of added value, aligning with this demographic’s desire for progress and activism.”
Allwyn’s CEO, Robert Chvátal, supports the vision, stating: “With technology moving faster than anyone could have predicted, how our customers interact with us and play lotteries will continue to evolve, and we as a business need to keep innovating to serve them and our broader stakeholders.
“The Future of Lottery report acts as a catalyst for us at Allwyn to keep innovating and evolving our products to meet the demands of a new generation of players, delivering successful lotteries and returning more money to governments and good causes in every market in which we operate.”
The mandate to evolve responsibly is not just a business objective; it is a promise to future consumers that lottery can maintain its purpose of helping the betterment of society.
Chvátal concisely declared that ‘it is the future that we are focused on’. “I believe this report is a valuable contribution to inform how we and the wider lottery and gaming community prepare for tomorrow’s world, and I’m excited to work with my colleagues at Allwyn on our own journey to build better lotteries well into the future.”