Island experts played a major role in an international conference for companies involved in the lottery messenger business.
And the vibes coming from the event was that the future is bright.
But it was felt that operators need to be the architects of their own success given the likelihood of increased regulation and interest in the industry.
That was one of the messages delegates received at the third Global Lottery Messenger Forum (GLMF) organised by island payments company, Counting House, which took place recently in Sofia, Bulgaria.
There were 140 people from 22 countries at GLMF2016 which brought together the key personnel in the lottery messenger industry.
Lottery messenger services is one of the newest and fastest growth areas in online business.
Customers are given the chance to participate in lotteries around the world.
This is done by either buying tickets in those lotteries on their behalf or by taking bets on the winning numbers, which are then insured to provide the same amount of pay-out if those numbers win.
Jackpots can be huge, running to hundreds of millions of euros, pounds or dollars.
Speaking at the event, organiser Stuart Ballan, head of sales, Middle East, of the regulated payment processor Counting House, said that the industry was going from strength to strength.
In particular there had been a marked increase in the number of so-called white labels and in sales volumes.
A white label product or service is a product or service produced by one company (the producer) that other companies (the marketers) rebrand to make it appear as if they had made it.
Mr Ballan said: ‘Changes in lottery rules have led to a jump in jackpot sizes and a massive increase in the numbers of customers.
‘As we saw earlier in the year when the Powerball Lottery rolled over from $950 to $1.5bn in just four days, there was a tsunami of customers wanting to play, so much so that it caused operational problems for some brands, while giving huge potential for retention and repeat play.’
Mr Ballan said that the industry had seen consistent steady growth that was compatible with long term sustainable business but there were challenges on the horizon, consistent with every maturing industry, including new regulation and the possibility of lotteries changing their rules. At present, while insurance-model operators are required to hold a gambling licence, this is not the case for ticket-purchase operators.
However delegates were told that further regulation of the industry was inevitable and it was important that any new legislation was informed and proportionate.
Speaker Steve Brennan, chief executive of the Isle of Man Gambling Commission which regulates eGaming in the Isle of Man for both insurance and ticket-purchase models, suggested that operators should be ‘pro-active’ and consider forming a trade association to demonstrate the industry’s ability to self-regulate through an agreed code of practice.
This would show that operators had given consideration to regulatory issues and could manage the industry for the greater good of that industry, as well as informing any future legislation, he added.
Paul Davis, managing director of Counting House, said that historically lotteries had sought to differentiate themselves from gambling but that the lottery messenger industry had put the spotlight on them.
He said: ‘Increasingly around the world, gambling commissions have started to merge with lottery regulatory authorities, nowhere more notably than in the UK.
‘The future is already happening.’ Elsewhere at GLMF2016 there were 12 presentations and two panels, driven by 20 speakers and panellists, with presentations on the lottery ticket purchase model, risk management, the use of call centres, B2B sales, marketing strategies and partnerships.
Many speakers reflected on the huge potential for operators to diversify or offer additional gaming products given their expertise in distance sales and extensive database management, instantly returning the discussion to gaming regulation.
Delegates were later able to participate in their own version of the US Powerball lottery with two lucky attendees winning Bose noise reduction headphones.
After the event Stuart Ballan said it had been another successful year for the GLMF.
He said: ‘The willingness for people to engage and the openness with which they spoke about their successes and challenges bodes well for the future of the lottery messenger industry.
‘There is always a lot to learn in new markets and having a space to share information and network with peers is really valuable.
‘We were delighted that attendance was up 40 per cent on last year and expect to see the number rise again next year.’
GLMF2017 will take place in Cyprus next year.