Full year global lottery sales up by 9.9%; growth driven again by Latin America and Asia Pacific.
In 2014, full-year on full-year global lottery sales grew 9.9%, strengthening from 2013 full-year on full-year growth of 4.9%. The growth in worldwide lottery sales was once again built on the foundations of strong performances from the Asia Pacific and Latin American regions, with both these locales having recorded unbroken double-digit growth in sales over the past six quarters. The robust performance of the Asia Pacific and Latin American markets was tempered, however, by the performance of the North American region, which saw full-year on full-year sales tread water in 2014. For their part, the European and African markets recorded mild year-on-year gains for 2014. The improvement in sales globally in 2014, together with the recent upturn in the economy in the United States, paints a more promising picture for global growth than has been occasioned in the past two years. Indeed, the pickup in global growth suggests we may be returning to the heights of 2011, the best year for global lottery sales in recent memory; see the attendant graph (right).
Basel, 2 April 2015—In 2014, full-year on full-year global lottery sales grew 9.9%, strengthening from 2013 full-year on full-year growth of 4.9%. The growth in worldwide lottery sales was once again built on the foundations of strong performances from the Asia Pacific and Latin American regions, with both these locales having recorded unbroken double-digit growth in sales over the past six quarters. The robust performance of the Asia Pacific and Latin American markets was tempered, however, by the performance of the North American region, which saw full-year on full-year sales tread water in 2014. For their part, the European and African markets recorded mild year-on-year gains for 2014. The improvement in sales globally in 2014, together with the recent upturn in the economy in the United States, paints a more promising picture for global growth than has been occasioned in the past two years. Indeed, the pickup in global growth suggests we may be returning to the heights of 2011, the best year for global lottery sales in recent memory; see the attendant graph (right).
The Latin American market performed most strongly in 2014, with participating Latin American lotteries reporting an aggregate full-year on full-year increase in sales of 23.2%. Growth in Latin America was once again driven by Argentina’s Lotería Nacional Sociedad del Estado, which reported a full-year on full-year increase in sales of 26.8%. Brazil’s Caixa Econômica Federal also performed robustly, recording a twelve-month on twelve-month increase in sales of 18.5%. In contrast, Chile’s Polla Chilena and Mexico’s Lotería National para la Asistencia Pública both had a quieter 2014, with FY on FY sales holding steady at the former, and down slightly at the latter.
The Asia Pacific region also saw strong growth, with participating Asia Pacific lotteries witnessing an aggregate full-year on full-year increase in sales of 15.6%. Continuing an ongoing theme, the engine of growth in the Asia Pacific region was the participating mainland Chinese lotteries. Building on the growth in sales occasioned by the 20th FIFA World Cup, held in Brazil from June 12 to July 13, 2014, the China Sports Lottery recorded a full-year on full-year increase in sales of 32.8%, while the China Welfare lottery reported a twelve-month on twelve-month increase in sales of 16.7% for its part. With sales in excess of EUR 30 billion (USD 32.2 billion) over the past twelve months, the China Welfare lottery is now the world’s largest lottery by annualized sales volume, eclipsing Italy’s Lottomatica, which falls back into second place, just ahead of the China Sports Lottery. Elsewhere in the Asia Pacific region, Australia’s Lotterywest held steady with an FY on FY increase in sales of 1.8%, while Japan’s Takara-kuji lottery saw its sales dip slightly over the same timeframe.
In Europe, lottery sales picked up in 2014, with participating European lotteries recording an aggregate full-year on full-year increase sales of 5.1%. With Eurostat reporting that GDP rose over FY 2014 by 0.9% across the euro area (EA18 countries) and rising by 1.4% across the EU28 countries in the same timeframe, the economic environment eased slightly for Europe’s lotteries. Lotteries in Eastern and Central Europe fared best, with sales at Hungary’s Szerencsejáték Zrt. increasing by 24.8% year-on-year and sales at the Czech Republic’s SAZKA a.s. growing by 15.2% over the same period. In Greece, sales at OPAP continued to rebound, with twelve-month on twelve-month revenues up 14.8%. This marked the sixth consecutive quarter of growth in sales at OPAP, defying the ongoing economic turmoil in Greece. Poland’s Totalizator Sportowy also had a positive 2014, recording an FY on FY increase in sales of 6.7%. Elsewhere in Europe, Finland’s Veikkaus Oy, Italy’s Lottomatica, and France’s Francaise des Jeux all reported full-year on full-year increases in sales in the region of 5%. In contrast, sales at the participating Spanish lotteries fell slightly over the same timeframe.
The African region saw modest gains in 2014, with participating African lotteries recording an aggregate increase in full-year on full-year sales of 3.8%. Ghana’s National Lottery Authority saw full-year sales increase by 21% across the board in 2014, as against full-year sales for 2013. Morocco’s La Marocaine des Jeux also continued to perform strongly, recording a twelve-month on twelve-month increase in sales of 11.9%. The Mauritian National Lottery also fared positively, seeing its sales increase by 6.6% year-on-year. In contrast, full-year sales at South Africa’s Gidani and Morocco’s Loterie Nationale dipped slightly in 2014, as compared to full-year sales for 2013.
The North American region held steady in 2014, with participating North American lotteries posting an aggregate full-year on full-year increase in sales of 0.4%. This, despite the improving U.S. economy, which saw real GDP rising by 2.4% for 2014 (as against 2013) — the best full-year growth recorded by the U.S. since 2010. The standout performer in the North American region was once again the California Lottery, which boasted a full-year on full-year increase in sales of 6%. Elsewhere in North America, full-year on full-year sales at participating lotteries either held steady, or ventured into negative territory. One possible explanation for the sluggish growth in sales in North America — the improving U.S. economy notwithstanding — might lie in the performance of the U.S. multi-jurisdictional Powerball game, which saw its full-year on full-year sales decline by 19%; this, despite the game’s recent introduction in California. A comparative lack of big Powerball jackpots in 2014 (where only one Powerball jackpot over USD 400 million was recorded), coupled with possible jackpot fatigue, may have contributed to the block game’s comparatively lackluster performance over the given timeframe.
The close of 2014 marks the fifth year the WLA has been reporting on quarterly sales growth in the world lottery community. Over this time, global growth in lottery sales has ranged from an annual high of 13.1% (2011) to an annual low of 4.9% (2013), averaging out at a very respectable 8.3% per annum, in what have been largely challenging economic circumstances worldwide. The continued growth of our industry, even in difficult economic climes, is a testament both to the commitment of the professionals whose work powers this industry, and to the public’s ongoing desire to play fun, entertaining, and socially responsible games that contribute to good causes. New benchmarks continue to be set: Q4 2014 marked the first time in which global lottery sales, as recorded by the lotteries participating in the WLA Quarterly Lottery Sales Indicator (WLA QLSI), saw sales of over EUR 50 billion (USD 53.7 billion) in a quarter.
The WLA will continue to track the progress of global lottery sales in future editions of the WLA Quarterly Lottery Sales Indicator. We wish to thank all WLA member lotteries participating in this initiative, and look forward to bringing you the fourth quarter 2014 results shortly.
WLA Executive Director
|* Based on sales of participating lotteries. Participating lotteries by region:|
|Ghana: National Lottery Authority||Argentina: Lotería Nacional Sociedad del Estado|
|Mauritius: Mauritius National Lottery||Brazil: Caixa Econômica Federal|
|Morocco: La Marocaine des Jeux et des Sports||Chile: Polla Chilena de Beneficencia|
|Morocco: Loterie Nationale||Mexico: Lotería National para la Asistencia Pública|
|South Africa: Gidani (Proprietary) Limited|
|Asia Pacific||North America|
|Australia: Lotterywest||Canada: Loto-Québec|
|China: China Sports Lottery||Canada: Ontario Lottery|
|China: Chinese Welfare Lottery||USA: California Lottery|
|Hong Kong: HKJC||USA: Connecticut Lottery Corporation|
|Japan: Mizuho Bank Ltd.||USA: Kentucky Lottery Corporation|
|Europe||USA: Minnesota State Lottery|
|Czech Republic: SAZKA sázková kancelář, a.s.||USA: New York State Lottery|
|Finland: Veikkaus Oy||USA: Tennessee Education Lottery Corporation|
|France: Francaise des Jeux|
|Hungary: Szerencsejáték Zrt.|
|Italy: Lottomatica S.p.A|
|Norway: Norsk Tipping AS|
|Poland: Totalizator Sportowy Sp. z o.o.|
|Spain: Loterías y Apuestas del Estado|
|Spain: Organización Nacional de Ciegos Españoles|
|Sweden: AB Svenska Spel|
|Switerland: La Loterie Romande|
|United Kingdom: Camelot UK Lotteries Limited|