Unlike traditional lottery sales, online lottery sales are not run by government agencies. Instead, private companies run these websites. The primary utility of these sites is to provide information about winning numbers, locations, and contact information. However, a handful of online lotteries are expanding their service offerings by offering Instant Games, which are casino-style games with wagering capabilities. These games can be played on desktop and mobile devices.
Developing an online lottery platform can be expensive and time-consuming. Not only do you have to build the technology from scratch, but you have to monitor and manage the platform’s functionality, check for bugs, and incorporate new technologies. This is like running your own software development company, leaving you little time for marketing, revenue, or staff management. In addition, the software must be updated regularly. This leaves you little time to focus on growing your online lottery.
However, online lottery sales have become legal in some states. While the internet has increased access to gaming content, some states are still reluctant to legalize online lotteries. Several states, including Michigan, New York, and Illinois, have legalized the lottery and are now accepting online lottery ticket sales. In Michigan, online lottery sales require that players be state residents to be eligible to win.
Legalities governing online lotteries are the main obstacle. Although the US Federal Wire Act prohibits interstate sales, this does not apply to online lottery sales in the states. Licensed lottery agents are allowed to sell online. While the DOJ issued a legal opinion regarding this matter, states still have the right to regulate their online lottery sales.