UK National Lottery Revenues Plunged Amidst Mobile Profits
UK-based lottery operator Camelot has announced that revenues for the UK National Lottery has plummeted more than 6% in Q1 and Q2.
Camelot Lottery reports that National Lottery tickets are experiencing a sales decline. It has plunged to hitting £3.389b in the six months ending September 24. It was down by £226m from the similar period last year. Camelot UK Lotteries Ltd has only remitted £783m in the fiscal year.
Sales Decline Due to Difficulty to Win
The UK National Lottery made an interesting change it in its game. It added 10 balls to its previous 49 balls last year. This made it more difficult to win the jackpot prize. It has also resulted to more rollovers with larger jackpots. However, bettors have showed dismay in winning mega prizes that went from one in 14m to in 45m.
Camelot UK Lotteries have announced that while traditional lottery games are declining, its digital sales are gaining momentum. It has landed a record of £726m in H1 2016-17. Mobile sales have posted a decent 13.5% increase. Camelot’s erroneous National Lottery app is expected cause a decline to mobile sales.
Camelot expects H2 to be “similarly challenging” due to economic uncertainty and “direct, often aggressive, competition” from other gambling sectors, including those pesky “bet-on-lottery firms purporting to offer the same products as the National Lottery.” Camelot CEO Andy Duncan said.
Camelot Lottery Facing Local Competition
Camelot’s lottery games and digital products are facing stiff competition this year. Lottoland is still offering UK bettors the opportunity to win the EuroMillion jackpot for £2. Camelot has increased its EuroMillions ticket price at £2.50.
Industry pundits are saying that the lottery concept is becoming obsolete. This is why more operators are offering digital lotto games and skill-based games. The World Lottery Association thinks the lottery concept is catching up.
The WLA has emphasized that international lottery sales were up by 4.5% in Q2. South Africa has led the lottery sales race with a 21% annual improvement. North America was second best in geographical gains with 9.5%. European sales were up 3.9%. The Asia Pacific region earned 2.3%.