In gambling, as with all industries, a company looking to compete must have at least one advantage over its rivals.
Lotteries have been successful in lottery games, of course, with the help of their monopoly position. And though they do not enjoy the same status when it comes to sports betting, thanks to their lottery monopoly, these businesses already have a large customer base that knows the company and values its operations.
This appreciation and trust can also be used in other product areas.
The most significant reason why lottery games are so popular is the size of the jackpots, which other gambling companies simply cannot offer. Lotteries have harnessed their large customer bases and launched games with prizes stretching into the tens of millions.
Lotteries already understood 20 years ago that there is strength in cooperation. The companies operating in their jurisdictions do not compete with each other, making cross-sector collaboration relatively straightforward.
Together, lotteries leveraged their strength even further to offer jackpots far larger than they could provide alone. EuroMillions and Eurojackpot games in Europe and the Mega Millions and Powerball games in the US were born as a result.