Full year global lottery sales up by 4.9%; growth driven by Latin America and Asia Pacific.
In 2013, full-year on full-year global lottery sales grew 4.9%, moderating from 2012 full-year on full-year growth of 7.7%. The growth in worldwide lottery sales was again built on the foundations of strong performances from the Asia Pacific and Latin American regions, with both these regions having recorded double-digit growth in sales over the past three consecutive quarters. The strong performance of the Asia Pacific and Latin American markets was offset, however, by the performance of the European region, which saw full-year on full-year sales contract in 2013. For its part, the North American market registered mild year-on-year gains for 2013, while the African market for FY 2013 was basically unchanged relative to its overall position in FY 2012. The tempering of sales globally in 2013, together with recent political and economic developments worldwide such as the crisis in Ukraine and heightened economic instability in Argentina, suggests it would be prudent to adopt a cautious outlook on global lottery sales for 2014. Indeed, global growth in world lottery sales has now slowed for two years in succession, after reaching a high point in 2011, as the attendant graph shows.
Basel, 13 March 2014—In 2013, full-year on full-year global lottery sales grew 4.9%, moderating from 2012 full-year on full-year growth of 7.7%. The growth in worldwide lottery sales was again built on the foundations of strong performances from the Asia Pacific and Latin American regions, with both these regions having recorded double-digit growth in sales over the past three consecutive quarters. The strong performance of the Asia Pacific and Latin American markets was offset, however, by the performance of the European region, which saw full-year on full-year sales contract in 2013. For its part, the North American market registered mild year-on-year gains for 2013, while the African market for FY 2013 was basically unchanged relative to its overall position in FY 2012. The tempering of sales globally in 2013, together with recent political and economic developments worldwide such as the crisis in Ukraine and heightened economic instability in Argentina, suggests it would be prudent to adopt a cautious outlook on global lottery sales for 2014. Indeed, global growth in world lottery sales has now slowed for two years in succession, after reaching a high point in 2011, as the attendant graph shows.
The Latin American market enjoyed the strongest performance of any market in 2013, with participating Latin American lotteries reporting an aggregate full-year on full-year increase in sales of 21.4%. Growth in Latin America was fuelled by Argentina’s Lotería Nacional Sociedad del Estado, which reported a prodigious twelve-month on twelve-month increase in sales of 31.4%. Chile’s Polla Chilena de Beneficencia also performed strongly, recording a full-year on full-year increase in sales of 15.1% on the back of a very good first-half showing. Brazil’s Caixa Econômica Federal also performed robustly, with an 8.8% increase in sales for FY 2013 against FY 2012.
The Asia Pacific region also fared impressively, with participating Asia Pacific lotteries witnessing an aggregate full-year on full-year increase in sales of 13.1%. The mainstay of growth in the Asia Pacific region was again the participating mainland Chinese lotteries. The China Sports Lottery delivered a twelve-month on twelve-month increase in sales of 20.2%, with the China Welfare lottery following on closely behind with a whole-year on whole-year increase in sales of 16.9%. On the other hand, Japan’s Takara-kuji lottery saw its sales fall for the twelve months up to and including December 2013, as against the twelve months up to and including December 2012. The decrease in sales at the Takara-kuji lottery is largely attributable to the very positive response of the Japanese public to the one-off special lottery held in February 2012 to raise funds for reconstruction work after the Great East Japan Earthquake of March 2011. Indeed, for the nine months April–December 2013, sales at the Takara-kuji lottery were up by 4% on sales for the corresponding period of 2012.
The North American market slightly improved on FY 2012 results, with participating North American lotteries posting an aggregate full-year on full-year increase in sales of 2.1%. The standout performer in the North American region was the California Lottery, which boasted a full-year on full-year increase in sales of 8.8%. The Tennessee Education Lottery Corporation also fared well, reporting a twelve-month on twelve-month increase in sales of 5%. The comparatively modest overall position of the North American region for FY 2013 relative to FY 2012 is apparently attributable to the enormous popularity of the record-breaking US $656 Mega Millions draw of March, 2012, which pushed Q1 2013 results for participating North American lotteries deep into negative territory in comparison to results for Q1 2012. In contrast, lottery sales for participating North American lotteries grew 6.5% for the period Q1–Q3 2013, as against the period Q1–Q3 2012.
The African region was flat in 2013, with participating African lotteries recording an aggregate increase in full-year on full-year sales of 0.3%. The highlight of the African market was the performance of Morocco’s La Marocaine des Jeux, which showcased a twelve-month on twelve-month increase in sales of 11.7%. The strong showing of La Marocaine des Jeux was counterbalanced by results from the other participating African lotteries, which saw sales decline slightly across the board.
In Europe, lottery sales contracted in 2013, with participating European lotteries recording an aggregate decrease in full-year on full-year sales of 2.1%. With Eurostat reporting that GDP fell over the whole year 2013 by 0.5% across the euro area (EA17 countries) and rising by only 0.1% across the EU28 countries in the same period, the operating environment in 2013 was clearly a difficult one for lotteries. Sales at Greece’s OPAP fell particularly sharply in the first half of 2013 as against the first half of 2012, contracting by 15.1%, while year-on-year sales declined at several other participating PIIGS lotteries, including Spain’s Lotterias y Apuestas del Estado. In better news, however, European economic performance improved slightly in Q4 2013, with GDP rising by 0.3% in the euro area and by 0.4% in the EU28 during the fourth quarter of 2013, as compared with the previous quarter. The uptick in the economic outlook was apparently reflected in the fourth quarter sales figures of a number of participating lotteries in Europe, such as Finland’s Veikkaus, which saw its fourth-quarter on fourth-quarter sales rise by 9.1%. The Czech Republic’s SAZKA sázková kancelář, a.s. proved the exception to the general trends in Europe, seeing its sales rise by 25.6% in FY 2013, as compared to FY 2012. The strong showing of SAZKA sázková kancelář, a.s. was due to a confluence of several factors, including a successful restructuring of the company following a difficult 2011, and the continued success of its Sportka offering.
The WLA Quarterly Lottery Sales Indicator (WLA QLSI) was conceived in 2009 in the aftermath of the global financial crisis. In light of the economic uncertainty occasioned by the global financial crisis, the WLA determined that providing a regular snapshot of global and regional sales tendencies would be of considerable value to the world lottery community. The idea behind offering such a snapshot was not to enable fine distinctions in the analysis of lottery sales, such as could be assisted through, for example, the breakdown of lottery sales by product mix or category. Rather, the intent was to provide a very high-level overview of the state of play in the lottery industry, one which gave the industry professional a very general sense of how the industry was performing, both regionally in their organization’s jurisdiction and around the world. The WLA concluded that such a picture of the lottery industry could best be delivered by collecting and aggregating quarterly sales data from selected lottery organizations and reporting on the aggregated data in a timely manner, through the vehicle of the WLA QLSI.
At its launch in July 2010, the WLA QLSI reported on aggregated sales from 19 WLA member lotteries. Today, almost four years later, the WLA QLSI reports on aggregated quarterly sales figures from thirty-five lotteries, covering some 60% of world lottery sales by sales volume. Notwithstanding its growth in size, the aim of the WLA QLSI remains unchanged: to provide, through aggregating and reporting upon quarterly sales data from WLA member lottery organizations, a barometer for enabling lottery professionals to gauge the overall climate of lottery industry globally and by region.
The WLA will continue to track the progress of global lottery sales in future editions of the WLA QLSI. We wish to thank all WLA member lotteries participating in this initiative, and look forward to bringing you the first 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|
|Morocco: La Marocaine des Jeux et des Sports||Brazil: Caixa Econômica Federal|
|Morocco: Loterie Nationale||Chile: Polla Chilena de Beneficencia|
|South Africa: Gidani (Proprietary) Limited||Costa Rica: Junta de Protección Social|
|Mexico: Lotería National para la Asistencia Pública|
|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|
|Italy: Lottomatica S.p.A|
|Norway: Norsk Tipping AS|
|Poland: Totalizator Sportowy Sp. z o.o.|
|Portugal: Jogos Santa Casa|
|Spain: Loterías y Apuestas del Estado|
|Spain: Organización Nacional de Ciegos Españoles|
|Sweden: AB Svenska Spel|
|Switerland: La Loterie Romande|
|United Kingdom: Camelot Ltd.|