In July of 2019, the lottery betting service, Lottoland, reached 10 million customers. Launched in 2013, Lottoland is only one of the many sites to place bets on the lottery. Like many, it’s been recently growing in popularity, seemingly more convenient, supported by a large customer base.
To put it simply – lottery betting entices the lore of gambling, through having individuals attempt to predict the result of a lottery, and put a wager on it. Lotto betting is an online form of gambling, but sites like Lottoland are not connected to the official lottery. These sites are independent of them but work in a very similar way.
Through these sites, individuals can place bets on the results of a lottery – essentially, they pick their numbers just like anyone would with an actual lottery ticket, but they bet on it. Similarly, if all of their numbers match the numbers drawn; they receive the jackpot. With lotto betting, however, the jackpot would be paid directly by the company running the lotto betting site, rather than the actual lottery.
The first follow up question might be concerning how these lotto betting sites get enough money to pay for the prizes, or even the jackpot if someone has the luck of wagering on the right numbers.
It all links to how these businesses are built, most importantly, their models. There are two models for these sites – the insurance-based one, and the ticket seller one.
Most betting firms that offer lotto betting work through utilising a model that’s backed by insurance. This works through the betting firm forwarding each player’s bet to third-party insurance and paying a set fee for every bet placed to the insurance company. This compensates the risk of a player winning a bigger prize, like the jackpot. In case an individual has the luck of winning a large prize, or even the jackpot, the insurance company pays the betting money – this money is then given to the winning player.
For insurance-backed firms, this is how they protect themselves from going bankrupt in the rare case that a player manages to win a bigger prize, like the jackpot. If a player wins a smaller prize, then the company will simply supply the money from their own funds.
Firms that are insurance backed, however, have to hold legal betting licenses in the area, or country, where they want to operate. The other model for lotto betting firms is the ticket reseller model, which isn’t as common as insurance-backed firms. These companies buy tickets from the official lottery – on behalf of the player – but they charge the player the actual ticket price, and an additional commission. If the player has the winning ticket, the firm will collect the money from the official lottery operators, and forward it to the lucky player. These companies earn their income from charging that extra commission, which mostly goes towards the staff.
When it comes to placing the actual bets, there are two different ways of doing it. Usually, players will bet on official draws. In all essence, you follow the same rules this way. For the player, it usually means following the same procedure and rules as the official draw, but the actual cost of playing can differ.
Alternatively, some firms allow their players the chance of only betting on a few numbers being drawn, which adheres from the usual gameplay. With number betting, a player can only bet on two numbers being drawn on a lottery, rather than six. This method usually has betting companies deciding their own prize amounts, and forwarding the prizes to the winners directly.
This lotto betting is legal in countries, or areas, where online gambling is permitted. Most of these companies hold a licence for gambling, for the area of their players, and where they wish to operate.
Founded all the way back in 2013, Lottoland only took six years to rise to its title as one of the most prominent businesses for lotto betting, and a recognised leader in lottery betting. Like most of these firms, the betting is conducted independently, not connected to the original lottery whatsoever. It matches the official prizes though operating on an insurance model, offering its customers the ability to bet on the biggest and best lotteries from all over the world. This includes the US Powerball, and MegaMillions.
The gameplay is kept simple, just like the original lottery. You pick your numbers, and if you guess correctly, you win prizes, which are usually in the form of cash. The size of the prize depends on the amount of numbers guessed correctly, and any money that’s won by a player is paid out by Lottoland. For example, if a player bets on a correct combination of numbers in MegaMillions, then Lottoland would pay them the prize, matching the prizes of each tier correctly, including the jackpot.
Why Bet when you can buy an official ticket?
Why would you bet on the lottery, when you can just buy a ticket?
The first apparent feature with lottery betting is that it all takes place online. No physical tickets are used, or required, which is the more convenient method available today. Not to mention, independent business like Lottoland has the freedom to offer free bets, unique features, or special offers to players. It can even offer higher jackpots to its customers, in order to bring in more interest, and earn a higher income.
Of course, one of the more prominent features is the opportunity to bet on the biggest and the best lotteries from all over the world. When playing MegaMillions, for example, you have to be in the US to purchase a ticket from the original lottery. With lottery betting, you can purchase a ticket from MegaMillions even if you live in Europe, opening people’s doors to the biggest jackpots available, no matter where they live.
All in all, lotto betting has been one of the few recent things to have gained massive popularity over the last decade. With its exclusive offers and the freedom to place bets on any lottery in the world, it continues on its way to making its place in the lottery sphere.