Global growth up 4.5% half-year on half-year; sales underpinned by North America.
Lotteries worldwide continued to build on their generally positive start to the year, entertaining an aggregate half-year on half-year increase in sales of 4.5% globally, edging up on a first-quarter on first-quarter increase in sales of 3.1%. Half-year on half-year sales were up sharply in both the African and North American markets in the aggregate, and were up moderately across the board otherwise.
Basel, 1 November 2016—Lotteries worldwide continued to build on their generally positive start to the year, entertaining an aggregate half-year on half-year increase in sales of 4.5% globally, edging up on a first-quarter on first-quarter increase in sales of 3.1%. Half-year on half-year sales were up sharply in both the African and North American markets in the aggregate, and were up moderately across the board otherwise.
The African region enjoyed the strongest performance over the first half of 2016, with participating African lotteries reporting an aggregate increase in sales of 21% for H1 2016, as against H1 2015. As in Q1 2016, the main contribution to the performance of the African market came from the strong showing of the South African national lottery. Elsewhere in Africa, Morocco’s La Marocaine des Jeux continued its good form, reporting an increase in sales of 21% for H1 2016 over H1 2015, in line with the region as a whole, while Loterie Nationale Morocco reported a first-half on first-half increase in sales of 8.8%. Also in positive territory was Ghana’s National Lottery Authority, which recorded a first-half on first-half increase in sales of 7.6%. Offsetting these results, sales at the Mauritius National Lottery contracted over H1 2016, as against H1 2015.
Buoyed by the record-breaking Powerball draw of January 2016, the North American market also performed strongly over the first six months of the year, with participating North American lotteries reporting an aggregate first-half on first-half increase in sales of 9.5%. As in the first quarter of 2016, lotteries across the continent swept the board with positive results. The Minnesota Lottery, California Lottery, Kentucky Lottery, and Tennessee Education Lottery all enjoyed double-digit growth over the period January–June 2016, as against the period January–June 2015. Topping the bill was the Minnesota Lottery, which reported an increase in sales of 15.9% over H1 2016, as against H1 2015. With similar performances, the California Lottery reported an increase in sales of 13.9% for the two consecutive quarters January–June 2016, as against the corresponding quarters of 2015, while the Tennessee Education Lottery and the Kentucky Lottery witnessed sales increases of 12.9% and 12% respectively across the same timeframes. For its part, the Florida Lottery broke all sales records in fiscal year 2015-16, reaching more than USD 6 billion in sales – representing a half year-on-half year increase in sales of 9.1% – while the New York Lottery saw its first-half on first-half sales increase by 8.3%. Ontario Lottery and Gaming Corporation enjoyed the best performance of participating Canadian lotteries, reporting an increase in sales of 6.6% over the six months to June 2016, as against the corresponding revenue period of 2015.
The European region saw participating European lotteries recording a half-year on half-year increase in sales of 3.9%. Norway’s Norsk Tipping continued in its recent good form, overseeing a six-month on six-month increase in sales of 10.8%. Also performing strongly were France’s FDJ, which reported a first-half on first-half increase in sales of 8.7%, and Poland’s Totalizator Sportowy, which reported a first-half on first-half increases in sales of 8.2%. With no significant jackpot in Q2 2016 at Hungary’s Szerencsejáték Zrt., lottery sales there declined slightly, whereas sales of sports betting products increased on the back of the UEFA European Championship. Overall, the Hungarian national lottery was up 3.8% half-year on half-year. In contrast, Greece’s OPAP found itself in negative territory, recording a half-year on half-year decrease in sales of 4.3%. Nevertheless, Q2 2016 GGR remained broadly stable at the Greek national lottery, on the basis of the continued performance of lottery games and an increased year-on-year contribution from sports betting.
In the Asia Pacific region, results were once again in positive territory, with participating Asia Pacific lotteries recording an aggregate increase in sales of 3.3%. Leading the way was China Sports Lottery, which saw its sales grow by 8.4% over the first half of 2016, as compared against the first half of 2015. Growth at the China Sports Lottery was predicated on June 2016 sales, which increased by 47.2% over the corresponding month of 2015. Australia’s Lotterywest also fared strongly, reporting an H1-on-H1 increase in sales of 6.9%. In contrast to the situation at China Sports Lottery, sales at China Welfare lottery essentially held steady over the period January–June 2016 versus the period January–June 2015, contracting by 0.5%. Overall, sales of lottery products at the China Welfare Lottery fell slightly across the board, excepting for VLT sales, which were up by 4.4% H1-on-H1. Elsewhere in the Asia Pacific region, sales of the Takara-kuji lottery at Japan’s Mizuho Bank declined slightly.
In Latin America, participating Latin American lotteries reported an aggregate increase in sales of 2%, on the basis of revised reporting measures from Argentina’s Lotería Nacional Sociedad del Estado. The Argentinian national lottery continued its rapid growth in 2016, reporting a double-digit increase in sales for the first half of 2016, as against the first half of 2015. Elsewhere in Latin America, performance was tempered. For its part, Mexico’s Lotería National para la Asistencia Pública reported a first-half on first-half increase in sales of 5.2%, while sales at Chile’s Polla Chilena recovered, growing by 4.2% over H1 2016, as against H1 2015. Offsetting the performance of other lotteries in the region was Brazil’s Caixa Econômica Federal, which saw its sales contract slightly over the H1-on-H1 timeframe.
This edition of the WLA Quarterly Lottery Sales Indicator sees the addition of Mexico’s Pronósticos to the list of lotteries participating in the WLA Quarterly Lottery Sales Indicator, as well as the return of South Africa’s National Lottery. We extend a warm welcome to our new and returning members and look forward to bringing you the first half 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: Ithuba Holdings (RF) (Proprietary) Limited||Mexico: Pronósticos|
|Asia Pacific||North America|
|Australia: Lotterywest||Canada: BCLC|
|China: China Sports Lottery||Canada: Loto-Québec|
|China: Chinese Welfare Lottery||Canada: Ontario Lottery|
|Hong Kong: HKJC||USA: California Lottery|
|Japan: Mizuho Bank Ltd.||USA: Connecticut Lottery Corporation|
|Europe||USA: Florida Lottery|
|Czech Republic: SAZKA a.s.||USA: Kentucky Lottery Corporation|
|Finland: Veikkaus Oy||USA: Minnesota State Lottery|
|France: Francaise des Jeux||USA: New York State Lottery|
|Greece: OPAP||USA: Tennessee Education Lottery Corporation|
|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|
** From Q1 2016 onwards, Lotería Nacional Sociedad del Estado is reporting only on sales of products marketed directly by the lottery; sales from concessions are no longer being reported. The change in reporting measures is due to a change in management policy.