All You Need To Know Before Starting A Lottery Business – IPCAREER

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How to start a lottery business in Nigeria – have you been thinking of starting a lotto business lately. Today how to start a lotto business in Nigeria will be explain in details to you. All you need to know before starting a lotto business in Nigeria.

How to start a lottery business in Nigeria; Things you need to know

  1. Funding: Raising Adequate Money
  2. Registration: Licence and Business Name
  3. Insurance
  4. Marketing and Advertisement
  5. Set Up Your Rules And Regulations

Lottery business have been existing for a long time, that is why today, we have a lot of lottery companies you can partner or start your own by registering with the respectable bodies.

The business is legal in some countries and a huge revenue earner for the governments. while in some countries lottery business is not allowed.

Before setting up your enterprise you need to study federal and state laws in your country. The organizers of lotteries have different format such as purchase of tickets, selection of numbers and multiple entries.

The prize money could be fixed, based on multiplier numeric, fixed percentage of the receipt or 50% of the revenue. The chance of winning lotto varies and is determined by various factors. The game is patronized by low and middle class workers dreaming of big fortune and luck. Here are ideas on how to start a lottery business.

How to start a lottery business in Nigeria

Before you venture into lottery business fully, make sure you’ve done a wide research about it so you don’t pick a loss at the end. In your research, you will know all it takes to start a lotto business, this is known as feasibility studies and it is very important in this kind of business. Now let’s go into full details:-

  • Raising of Adequate Capital

To start a lottery business in Nigeria, you need a lot of money for this business, if you want your lottery business to do well then be ready to spend for a start. It is advisable to have sufficient capital to avoid closing down on a long run.

Especially, when people wins, don’t expect losses all the time, people will always win and if they win and you start bringing up some stories about insufficient funds, you will lose your customers and i am sure you don’t want that.

  • Registration: Getting a Licence and Business name

You need to get a Licence for your business and also a business name, very important. You need to get a permission to run a lottery business from the law enforcement agency to avoid harassment also for the sake of your customer so that they can place their bet in peace.

Note that some licence is bound to be renew, either monthly, weekly or yearly. some once in five years or Once in two years and so on.

  • Insurance

The high risk factor requires a good insurance policy. Some insurance policies to consider are liability insurance, contractual bonus sports insurance and price insurance.

Others are redemption rebate insurance and workers compensation insurance. Find out from an insurance expert the right policy to take.

  • Marketing and Advertisement

One of the most important aspects in how to start a lottery business in Nigeria is Marketing and Advertising your business. You need to reach your target audience and attract participation.

It is important you have a marketing budget and create a website. Use direct marketing, television advertisement and radio.

Use newspaper publications, banners and billboards. Increase awareness through social media platforms and web advertisement. Use email marketing, provide incentives and enlist sales agents.

You can also Promote your business by introducing discount or free credit of new customers accounts, this attract a lot of customers as well.

  • Set Up Your Rules And Regulations

You need to set up some laid down rules and regulations, and make sure your customers follow them strictly.

You must classify your time of payment, method of payment and everything attached to method of payment must be laid down strictly.

Lottery Categories

There are different types of lottery games, however the basic principle are the same. Lotto’s generally revolve around matching numbers drawn by the lotto company.

You have the daily lotto, mini lotto and standard lotto. Others are the multi-state lotto, quick picks, scratchers and the seven number lotto.

The standard lotto is when a player picks six numbers from a specific range of numbers like (Baba Ijebu). Daily lotto’s are drawn one a daily bases while multi state lotto’s offers large jackpot prices.

How to start a lottery business in Nigeria

Also Read: How To Start A Small Business In Nigeria

There are some lottery categories covered by the national lottery regulatory commission. The categories are online lotteries, promotional lotteries and sports lottery.

Others are USSD lotteries, charitable lottery, and lottery concierge services. They also accommodate short messaging service(SMS)lottery.

  • daily lotto
  • mini lotto
  • standard lotto
  • multi-state lotto
  • quick picks
  • scratchers
  • 7 number lotto’s
  • standard lotto
  • online lotteries
  • promotional lotteries
  • sports lottery
  • USSD lotteries
  • charitable lottery
  • lottery concierge services
  • short messaging service (SMS)lottery

How Lotteries are funded

There are two ways lottery companies fund price money. The use an insurance company to underwrite the game or uses gamers funds. To use gamers funds they need to sell enough tickets to cover the price payouts.

What Differentiate your Company?

The business is highly challenging and securing a license is difficult. To succeed you need to create a buzz and differentiate your company for competitors.

A simply way is to offer gamers better odds or price money. Another way is to make the ticket affordable and easy to buy.

Payment and Prices

The mode of payment for huge lottery prices depends on the organizers. Contrary to expectation in the United States of America there are two options.

The winner may chose to collect a lump sum or annuity payment. The lump sum payment is significantly lower than the advertised winning.

This could account for a reduction in earning to 1/3rd the actual prize money. This is also because of tax on winning. However in some countries the winning do not attract any personal tax especially for those who choose annuity payment.

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