As major betting platforms operate globally, they take advantage of economies of scale, i.e., in product development, creatives, partnerships etc. For this reason, they can offer a competitive global payout rate (often > 95%). From a responsible gaming perspective, lotteries should not offer a payout rate over 90%. Such a high payout rate can attract more players, but it also comes with a higher risk of exacerbating gambling problems.
Lotteries that offer sports betting sell their products online and at the retailer, but they are generally restricted to selling within their own jurisdictions. Operating at the retailer requires additional fees that include the use of the terminals, retailer commission, and sales team expenses. Under such conditions, lotteries cannot be as competitive as the major global online sports betting operators.
As lotteries are subject to state regulation, they may also have other restrictions. In many markets, the regulator sets the payout-rate limits that the lotteries must adhere to. Some lotteries even prefer to have a lower payout rate than the limit fixed by the regulator. This could be for margin effectiveness or to remain in line with their own responsible gaming policy.
Gaming products should provide attractive winnings, but lotteries are obliged to mitigate any potential for gambling addiction.
Lotteries sports betting payout rate
