First quarter growth up 3.1%; North America, Europe up; Asia Pacific down.
Lotteries worldwide experienced a generally positive start to 2016. First-quarter on first-quarter sales were up sharply in North America, thanks mostly to the record-breaking Powerball draw of January 2016, and were also up moderately in Europe. However, these results were offset by a contraction in sales in the Asia Pacific region. Overall, first-quarter on first-quarter sales grew by 3.1% globally.
Basel, 11 August 2016—Lotteries worldwide experienced a generally positive start to 2016. First-quarter on first-quarter sales were up sharply in North America, thanks mostly to the record-breaking Powerball draw of January 2016, and were also up moderately in Europe. However, these results were offset by a contraction in sales in the Asia Pacific region. Overall, first-quarter on first-quarter sales grew by 3.1% globally.
The North American market enjoyed the most auspicious start to 2016, with participating North American lotteries reporting an aggregate first-quarter on first-quarter increase in sales of 15.7%. Lotteries across the continent swept the board with positive results, on the back of the USD 1.6 billion Powerball jackpot of January 2016 in the US, and the performance of Lotto Max in Canada. In the US, three players each beat odds of 1 in 292 million to take home a one-third share of the main prize. In the excitement created by the world’s largest-ever jackpot, Powerball players spent an estimated USD 2.6 billion on the record-breaking event, with most of this outlay taking place in the final two weeks prior to the draw – just two weeks earlier, the first prize had stood at USD 400 million. The effect of the huge jackpot on Q1 2016 sales was felt across the entire country, with Q1-on-Q1 sales up by double digits in percentage terms at every participating US lottery. In California, for instance, the USD 1.6 billion Powerball draw provided a phenomenal lift to sales at the California Lottery, with first-quarter on first-quarter sales rising by 23.7%. Indeed, for the roll sequence that began on Saturday November 7, 2015, and that concluded on Wednesday January 13, 2016, the California Lottery enjoyed total Powerball sales of USD 386.0 million. To put this into context, the lottery’s budget for the entire fiscal year had estimated Powerball sales of USD 415.0 million. In particular, for the January 13 draw alone, California’s Powerball sales totaled just over USD 179 million; prior to this historic draw sequence, the lottery typically averaged around USD 2.2 million in Powerball sales per draw. A similar story was replayed throughout the U.S, from California to Florida. Thus Tom Delacenserie, Florida Lottery Secretary, remarked, ‘The Florida Lottery had a phenomenal third [financial] quarter. With its best January on record for Scratch-Off sales, and USD 1.76 billion in total ticket sales, the Lottery transferred approximately USD 519 million to the Educational Enhancement Trust Fund (EETF) between January and March.’ Secretary Delacenserie continued, ‘The third [financial] quarter often produces the Lottery’s highest sales, and thanks to the world-record Powerball jackpot, this year was no exception. The nearly 10-week Powerball jackpot run that led to a USD 1.6 billion jackpot, resulted in Florida ticket sales of USD 283 million, with Florida players winning USD 558.8 million in prizes and more than USD 114 million in revenue raised for Florida students and schools.’ Not to be outdone, lotteries north of the US-Canadian border also recorded very positive Q1-on-Q1 results, with Ontario Lottery and Gaming seeing its sales rise by 15.2% for Q1 2016 versus Q1 2015, and BCLC seeing its sales increase by 10.5% over the same timeframes. Similar to the US, the growth in sales at the Canadian lotteries appears to have been driven at least in part by interest in the Lotto Max block game, which saw a CAD 60 million jackpot in March 2016. Indeed, the past fiscal year saw a record number of Lotto Maxes, as well as a record number of MaxMillions draws.
The African market also performed robustly in Q1 2016. Participating African lotteries reported an aggregate increase in sales of 13% for Q1 2016, as against Q1 2015, with the main contribution coming from the strong showing of the South African National Lottery. Morocco’s La Marocaine des Jeux also continued its good form, reporting an increase in sales of 8.8% for Q1 2016 over Q1 2015, while Ghana’s National Lottery Authority continued on in its recent positive run, reporting a first-quarter on first-quarter increase in sales of 5.5%. Offsetting these results, sales at the Mauritius National Lottery contracted sharply for Q1 2016, as against the corresponding revenue period of 2015.
Europe presented a more mixed picture, with gains at Norway’s Norsk Tipping and France’s Francaise des Jeux being counterbalanced in part by a contraction in sales at Greece’s OPAP and Poland’s Totalisator Sportowy. Collectively, participating European lotteries registered an aggregate increase in sales of 4.9% for Q1 2016, versus the corresponding quarter of 2015. For its part, Norsk Tipping reported an increase in sales of 9% for the first three months of 2016, as against the first three months of the year prior, while Francaise des Jeux witnessed a first-quarter on first-quarter increase in sales of 8.2%. Europe’s largest lottery, Italy’s Lottomatica, also enjoyed a good start to 2016, recording a rise in sales of 6.6% over the period January–March 2016, as against the comparable revenue period of the previous year. On the other hand, revenues at Greece’s OPAP for the first quarter of 2016 were down 6.4% on the corresponding quarter of 2015 on the back of a drop in sports betting, while sales at Poland’s Totalizator Sportowy also moderated.
In Latin America, participating Latin American lotteries reported an aggregate increase in sales of 3.5%, on the basis of revised reporting measures from Argentina’s Lotería Nacional Sociedad del Estado. The Argentinian national lottery was once again the region’s strongest performer, reporting a double-digit percentage increase in sales for the first quarter of 2016, as against the first quarter of 2015. Elsewhere in the region, performance was more muted. For its part, Mexico’s Lotería National para la Asistencia Pública reported a first-quarter on first-quarter increase in sales of 5.8%, while sales at Brazil’s Caixa Econômica Federal held steady. On the other hand, relative to first quarter 2015 sales, first quarter 2016 sales at Chile’s Polla Chilena contracted, the dip in sales being apparently attributable to the very strong first-quarter 2015 showing of Polla’s flagship Lotto product.
In the Asia Pacific region, positive results from Australia’s Lotterywest and Hong Kong’s HKJC were not enough to compensate for a contraction in sales at the mainland Chinese lotteries, with the result that participating Asia Pacific lotteries saw aggregate first-quarter on first-quarter sales contract by 3.5%. The mainland Chinese lotteries in particular had a slow start to the year, with sales only beginning to pick up in the last month of the quarter. In consequence, China Sports Lottery recorded a Q1-on-Q1 decrease in sales of 7%, while the Chinese Welfare lottery recorded a Q1-on-Q1 decrease in sales of 1.9%. Particularly affected were keno-type lottery ticket sales, which declined 47.3% in Q1 2016, as against Q1 2015, and sales of the ‘Guess’ lottery game, which declined 13.9% over the same timeframe. In contrast, the sale of lottery products rose by 24.7% at Hong Kong’s HKJC over the January–March 2016 period, as against the corresponding quarter of 2015, and by 15.4% at Australia’s Lotterywest over the same three-month on three-month period. Elsewhere in the Asia Pacific region, sales at Japan’s Mizuho Bank held steady.
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.
|* 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.