Starting a lottery business can be a business venture that is both financially rewarding and relatively easy to set up. The online gambling industry is highly lucrative and more entrepreneurs are wanting to get in on the action every day. Fortunately, setting up an online lottery business can be done in as little as 60 days. In this guide, we’ll teach you how to set up your lottery from license to launch, so you can take part in the growth of this global industry.
Starting an Online Lottery Quickly
It is possible to launch a simple online lottery business within 60 days. However, a lot of work needs to be done within these two months for a successful launch; starting a lottery business is no easy feat and preparation is key.
Your first step is to obtain any necessary gaming licenses, so your business can legally operate within your jurisdiction. For a quick turnaround, you then need to partner with a lottery platform provider, who will set up your front-end (customer-facing) and back-end (business management) functions. These providers will help guide you through the process and make a 60-day launch possible. Below are the steps you and your lottery provider will need to complete.
1. Banking & Payment Processing
First, you’ll need to set up your business banking accounts. Then, determine how you will accept payments and handle payouts with your customers. The best lottery platform providers offer unlimited integrations with payment processors, so you can choose those with the lowest fees and offer your customers multiple ways to pay. Other platform providers may only support a few payment processors, so before you commit to a contract, be sure to add this to your list of questions to ask when starting a lottery business.
2. Know Your Customer (KYC) Compliance
KYC compliance is a requirement designed to protect against money laundering in the online gambling industry. The required compliance measures vary depending on which jurisdiction you are starting a lottery business in; each government has its own rules and regulations. Third parties can assist with KYC based on your local laws. Alternatively, operators can perform this step themselves.
3. Building a Team & Affiliate Relationships
A lottery business plan can only spring into action with the help of a good team. When first starting a lottery business, focus on employing staff within management, marketing, and customer service teams. As your lottery business grows, you can expand to form other departments. You should also use this time to identify and reach out to affiliates that can help drive visitors to your lottery platform once it is live.
4. Website & Branding
An online lottery business needs a website for customers to play games and purchase tickets. Secure the domain name and set up website hosting with a reputable provider. When designing your website, branding is another key consideration. Choose your graphics, fonts, and colors and your chosen lottery platform solution will integrate this into a responsive lottery website. Also, consider a user-friendly content management system (CMS) such as WordPress, so small website changes can be performed without the need for a developer.
5. Lottery Game Options
With your basic website set up, you need to determine what games to offer. Options include raffles, online keno, and big ball games such as Powerball and MegaMillions. Jackpots and progressives are other options that draw customers in, but it is worthwhile looking into jackpot insurance to protect against excessive losses. Some jurisdictions make this a requirement, so check your local laws.
6. Setting up Lottery Games
Your next step in starting a lottery business is to make your chosen games come to life. Determine how the lottery draws will work and whether you want physical equipment such as drawing machines. Random number generators (RNGs) are another option for online-only lotteries that ensure fair and legitimate drawings. Another important consideration at this stage is to determine how lottery management software can help you leverage data to deliver a better game experience to your customers.
7. Messaging & Contact Options
Determine what messaging system you will use to communicate with customers. Email and SMS are two common methods that work seamlessly with a variety of devices around the world. Consider messaging systems both for marketing and transactional purposes on your lottery business website.
8. Accounting & Finances
The best lottery platform providers can integrate external accounting systems with your lottery website as part of their lottery management software. Look at the viable options and, if not available through your provider, decide how you will manage your accounts. Please note that some jurisdictions additionally call for finances to be reviewed by a third-party auditor.
9. Certifications & Legalities
10. Server Provisioning
Server provisioning is a big step when starting an online lottery business. You need to lease your servers and firewalls and license the server OS and databases. If you’re going for a 60-day launch, this step can set you back. Thankfully, the best lottery platform providers will take over this complicated process and handle everything.
11. Website & Security Testing
At this stage, your online lottery platform is ready to be tested. The first type of testing is user acceptance testing, where a client tests the entire website without making any real transactions. Load testing follows and confirms whether the website is functional when receiving high volumes of traffic. When your online lottery business is successful, you must be able to accommodate thousands of website visitors without triggering slowdowns or interruptions. Testers then need to look for security vulnerabilities and ensure website speed is acceptable.
12. Soft Launch
A soft launch of your online lottery business is optional, but is an important step. This allows a set number of users to test a password-protected version of the website and make real transactions. Doing so allows you to spot any errors that need correcting which, unnoticed, could dramatically impact your real launch.
13. Marketing Campaigns
A key part of your lottery business plan, and the final stage before launch, is to market the website and get players excited about your new lottery. Prepare marketing campaigns, promote your lottery business on social media, and write press releases to spread the word. Now you’re ready to launch your new lottery business!
Final Thoughts on Starting a Lottery Business
Not all lottery providers offer the same features, the same level of technical expertise, or the same commitment to continuous innovation. When choosing a provider, do your homework and don’t just settle for a software demo. Instead, get a free, customized lottery growth plan that maps your lottery business’ needs from launch through all the stages of lottery growth. Schedule your introduction with 4 Leaf Lotto today and set your lottery business up to win from the start.