Online Lottery - Estonia

Estonia

Highlights

Revenue in the Online Lottery market is projected to reach US$88.75m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 4.90%, resulting in a projected market volume of US$107.50m by 2028.
In the Online Lottery market, the number of users is expected to amount to 28.2k users by 2028.
User penetration will be 1.7% in 2024 and is expected to hit 2.2% by 2028.
The average revenue per user (ARPU) is expected to amount to US$3.97k.
In global comparison, most revenue will be generated United States (US$5.74bn in 2024).
With a projected rate of 6.6%, the user penetration in the Online Lottery market is highest South Korea.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Online Lottery market in Estonia has been experiencing steady growth in recent years, driven by changing customer preferences and the introduction of new technologies.

Customer preferences: Estonian customers have shown a growing interest in online lottery games, as they offer convenience and accessibility. Online platforms allow players to participate in lottery games from the comfort of their own homes, eliminating the need to visit physical lottery retailers. Additionally, online lottery platforms often offer a wider range of games and larger jackpots, which appeal to customers looking for more variety and bigger prizes.

Trends in the market: One of the key trends in the Estonian online lottery market is the increasing popularity of mobile lottery apps. With the widespread use of smartphones, more and more customers are opting to play lottery games on their mobile devices. Mobile apps provide a seamless and user-friendly experience, allowing customers to play anytime and anywhere. This trend is expected to continue as mobile technology advances and more innovative features are introduced. Another trend in the market is the integration of social elements into online lottery games. Many online platforms now offer features such as chat rooms and social media integration, allowing players to interact with each other and share their experiences. This not only enhances the overall gaming experience but also creates a sense of community among players.

Local special circumstances: Estonia has a relatively small population compared to other countries, which presents both opportunities and challenges for the online lottery market. On one hand, the smaller market size allows for more targeted marketing and personalized offerings. Online lottery operators can tailor their products and promotions to the specific needs and preferences of Estonian customers. On the other hand, the smaller market size also means that there is a limited pool of potential customers. This makes it crucial for online lottery operators to differentiate themselves and offer unique value propositions to attract and retain customers.

Underlying macroeconomic factors: The growth of the online lottery market in Estonia is also influenced by macroeconomic factors. The country has a strong and stable economy, with a high level of internet penetration and disposable income. This creates a favorable environment for online businesses, including online lottery operators. Additionally, Estonia has a well-developed regulatory framework for online gambling, which provides a secure and trustworthy environment for both operators and customers. These factors contribute to the overall growth and development of the online lottery market in Estonia. In conclusion, the Online Lottery market in Estonia is experiencing growth due to changing customer preferences, including a shift towards online platforms and mobile apps. The integration of social elements into online lottery games is also a notable trend. The small market size presents both opportunities and challenges for online lottery operators, who must differentiate themselves and offer unique value propositions. The strong and stable economy, high internet penetration, and well-developed regulatory framework in Estonia contribute to the growth of the online lottery market.

Data coverage:

The data encompasses B2C enterprises. Figures are based on Gross Gambling Revenue (GGR) and represent what consumers pay for these products and services. The user metrics show the number of customers who have made at least one online purchase within the past 12 months.

Modeling approach / Market size:

Market sizes are determined through a bottom-up approach, building on predefined factors for each market segment. As a basis for evaluating markets, we use annual financial reports of the market-leading companies, third-party studies, and reports, as well as survey results from our primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, GDP per capita, and internet connection speed. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing. The main drivers are internet users, the urban population, the usage of key players, and attitudes toward online services.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. GCS data is reweighted for representativeness.