Everything About Lottery Betting – how it works and what it the difference from buying a paper ticket
When it comes to online lottery, there are two options:
- Completing a purchase of an actual lottery ticket – this means you pick the numbers online and someone is rushing to a local lottery stand or kiosk. Once the ticket is purchased, it is scanned to the lottery platform and the scan is linked to your online account.
- Placing a wager or bet on a specific lottery’s winning numbers – it is identical to completing a round playing a social game or casual mobile app, other than the winning conditions are set externally (outside of the game platform).
What is Lottery Betting?
Lottery betting refers to the activity of guessing the results of a particular lottery game and placing a bet, or wager, on how the outcome of the lottery game will turn out – which will be the winning numbers of the draw. This activity is a form of online gambling. Players do not purchase lottery ticket games online or on-site from official lottery operators or online agents, but rather bet on the results of the lottery games. The process of purchase and how lottery betting works is identical to the process for purchasing actual lottery tickets. The only difference lies in the fact that players are betting on the result of the lotteries and not picking draw numbers in a paper ticket from the official lottery. This form of online gambling can only be run by specifically licensed operators via online gambling websites – different countries require different regulations.
Understanding lottery betting a little better
The interest and investment in online lottery betting have increased substantially in the past few years. The lottery is one of the oldest and most popular people engaging games in any country. Although the revenue generated from the lotteries is much more than lottery betting, this is changing nowadays. And, this is a change happening each day and with each lottery, the gap between the revenue generated from the lotteries and lottery games betting is reduced. This is notably true throughout Europe and North America. Betting on lotteries has been running as a successful business for a long time in the United Kingdom. Data published by the United Kingdom National Commission in 2016 shows that between the month of April 2015 and March 2016, the online gambling industry generated a gross gambling yield of 4.5 billion euros. This at the time made the online gambling industry the largest gambling sector in the United Kingdom. Out of this generated amount, 1.6 billion euros was raised via betting and from 152 million euros from betting exchanges. The UK lottery industry distributed 1.8 billion euros from this 2016 revenue for charity and good causes.
One of the greatest advantages for both the players and the online betting industry is that it is not limited by the geographies of a country or a continent. A player from South Africa could place bets on the results of the French lotteries. Because of this, and because the players play only online, they have access to a lot more games to play and a lot more options to choose from.
How does lottery betting work?
Online lotteries do not require someone to purchase the lottery tickets in order to participate in the games. Popular lottery betting organizations work with international insurers that work with big companies and financial organizations to cover the jackpots and other big prizes. The financial institutions or insurers that work with lottery betting companies must be licensed and regulated by a gambling commission to ensure the safety of the players. In this system, the insurers also cover the risks and if there is a winner, they are paid directly. The business system in lottery betting is unique. Another reason for the popularity that lottery betting has gained is because the prizes and jackpots offered in it are almost equal to the prizes offered in the lotteries. So the players do not lose out on any winning opportunities by participating in lottery betting rather than playing the lotteries.
Details of the process: As mentioned, the player will not have to purchase a physical bet to participate in lottery betting. In this case, when a ticket is purchased online, the player is actually placing a bet on an expected potential outcome of the lottery game of the player’s choice. Other than this, choosing the lottery numbers works exactly the same as the traditional lotteries. The prizes go up to millions of dollars. Each win from the lottery bet is prized equally to the national lottery game that the player has bet on.
What happens when a player wins?
If a player wins on a lottery bet, the player will be alerted via e-mail by the organizing company where they have placed their bet. The e-mail will contain details of the win. All the results of the lottery bets are also published on the company’s website for public access to this information. Since unlike traditional lottery where the prize money is created is created by the sale of tickets, the lottery betting wins are covered by an insurer, this financial investor pays the prizes in full to the winners. The prize money is directly transferred to the player’s registered account details.
What are the insurance module and the ticket reselling model?
The insurance model: The insurance model is the most common model adopted by lottery betting companies. In this model, the companies are not needed to purchase the lottery tickets from the lottery operators to offer lottery betting services. Rather, once a player bets on a particular lottery, the company forwards this bet to an insurer that the company is working with. In order to balance the risk of a large prize money win, the betting organization pays a fee to the insurance company for every bet that is placed. When a player wins a jackpot or any large prize money, the insurance will pay this money to the winner. In case of small prize money wins, the betting company pays the money to the winner from their existing pools. Players should ensure that the betting company they are engaged withholds the required betting licenses in their jurisdiction to offer this service.
Ticket reselling model: In this model, the company purchases tickets for the official lotteries on behalf of the players. A commission is charged along with the price of the ticket when the ticket is bought. When the winner is declared, the company collects the prize money from the lotteries and sends it to the winner on behalf of the lottery operator.
Types of lottery betting:
Draw betting: This refers to betting on the outcome of the draws of the lottery games. The system is the same as when a player would purchase a lottery ticket. The rules and regulations are also the same as the lottery draws. The players placing the bets would choose the same amount of numbers as they would for the lottery draws. They will also win the same prizes as someone who would have if they had won the official state lotteries. The prizes for betting on lotteries is regulated by the respective companies that offer the lottery betting services.
Number betting: This refers to when the players bet on each of the numbers being drawn. They do not have to bet on the entire draw but rather choose to bet on certain numbers from the draw. The players can even bet on the outcome of drawing of just one number from a specific lottery game.
Legality of lottery betting:
The law behind lottery betting changes from country to country across the world. But as a general rule, lottery betting in legal in countries where online gambling is allowed. Therefore, in most of the European nations, lottery betting is allowed. This is heavily regulated by the gambling commission of specific countries. And as mentioned above, the law states that only those with relevant gambling license can offer lottery betting services. Websites that offer lottery betting are generally internationally accessible. Therefore, players should check with their county’s gambling laws to ensure that lottery betting is legal before engaging in the games.
The Pros and Cons of lottery betting:
Players may wonder why they should participate in lottery betting when they can directly purchase lottery tickets and play the lottery games officially. Listed below are few of the pros as well as cons of the lottery betting system. Players should compare both these and arrive at a decision on what works best for them.
- When playing lottery betting, there is a higher chance of winning the prizes. Because the bet placed is on the “outcome”, this automatically increases the chances of winning something if not a jackpot.
- The players can participate in lottery betting through some of the websites that offer the service. This website is easily accessible without geographical limitation. Therefore, there is access to more games on an international platform
- Lottery betting is only allowed in countries where regulation is high. Thus, the companies that provide lottery betting and national gambling commissions together ensure that the customer is safe and secure
- The prize winnings of lottery betting are transferred directly to the player’s accounts. In the case of lotteries, there is the risk of winners not being to claim prize winnings because of the need to travel to another country to claim their prize money. This is not the case with lottery betting since the money is always transferred to the players’ registered bank accounts.
- Although there is a higher of winning, players choose only three to four numbers as opposed to the official lotteries where six numbers are chosen. This means the official lottery players will have a higher chance of winning a large/more prize money. Lottery betting will not be able to make the players millionaires.
- Lottery betting leads more easily to addictions that the actual lottery games. Not that many players purchase lottery tickets to the extent that their financial security becomes at risk. Whereas with lottery betting it is often seen that players get caught up and get addicted to the game.
Where can players participate in lottery betting?
Lottery betting is done only online via websites. Some of the most popular websites that offer lottery betting are listed below along with their web addresses. Although these websites can be accessed from anywhere in the world, players should double check to ensure that lottery betting is legal in their country.
GiantLottos – Read Review
MultiLottos – Play | Read Review
My Lotto 24 – Read Review
Lottoland – Play | Read Review
Lottosend – Play | Read Review
The Lotter – Play | Read Review
Jackpot – Play | Read Review
See the list of all brands for more playing options here.
What the future of lotteries and lottery betting holds?
The lottery betting industry is among the best-regulated industries in the world today. The lottery betting companies are creating an industry of lottery betting that is separate from the world of the official lotteries. Soon, lottery betting will stand out as a separate revenue generating industry of its own. Not only does it have a lot of players but it is also very easy for players to be drawn into placing bets on the lotteries. Players from any corner of the world now have access to some of the biggest lotteries in the world such as the Mega Millions, US Powerball, Euromillions, Eurojackpot and El Gordo, Spain’s famous Christmas lottery. Players do not have to lose on the experience of being a part of these games.
A study conducted by the Research and Markets reported in 2016 that within a decade from then, the lottery industry would expand by 8.85% along with the lottery betting industry. Combined, the lottery world was a 275 billion dollar industry in 2016. This increases each year. It is said that soon, companies that offer lottery betting websites will create lottery betting applications and websites as social platforms where individuals from syndicates and groups with family and friends to participate in lottery betting. It will soon become something that is done together “socially”.
With the advancement in technology, it is also predicted that the expansion of the lottery betting industry will be much easier than ever before. Companies will introduce mobile applications and other modes of access that would make it quick and effortless to participate in lottery betting. Within the next decade, lottery betting would become as popular as lotteries. It will generate more revenue and will be a big addition to the already multi-billion dollar lottery industry. There will be websites and applications that brings lottery betting to everyone’s mobile devices. It is also possible that these might get integrated with social media. The lottery betting industry will be able to contribute more for charitable causes. There is much to look forward to the growth of the lottery and the lottery betting industry.
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