There may be more millennials walking in the face of the Earth at present but only a few of them are playing lottery.
This is the stark reality that technology start-up AutoLotto has to face as only one-third of people aged 20 to 35 bought lottery ticket last year. While lotteries racked up $80 billion in sales last, the numbers are declining.
CNBC reported that AutoLotto is attempting to lure millennials in playing lottery through their app which allows users to buy tickets from their smartphone. The app, according to the report, also lets users scan a paper ticket purchased in-store to track it, and get notifications if they win.
So far, the effort of AutoLotto has reaped the company positive results. It said that 57 percent of their user base are now millennials.
“Mobile just makes sense,” Tony DiMatteo, co-founder of AutoLotto, said. “Millennials shop and play games on their phones a lot. And they don’t make up a lot of the foot traffic to the traditional retailers that sell lottery tickets, whether that’s your local pharmacy or a store at the gas station.”
The start-up, which has facilities in each state here it operates, buys up, signs and keeps original paper tickets there, which it also pays to insure, in case anything goes wrong at its holding facility.
AutoLotto will be the one to bring the player’s winning ticket to the local lottery agency to redeem the prize. Once they got hold of the money, AutoLotto will pay out winners via its app.
To ramp its operations, AutoLotto raised $17 million in a series A round of venture funding. The investors include iHeartMedia, and Fortress Investments, a fund affiliated with U.S. newspaper publishers, GateHouse Media, along with several angel investors.
It also secured an authorization to sell Powerball tickets via mobile to customers in eight states.
Tom Arrix, former vice president of global marketing solutions at Facebook and one of AutoLotto’s investors, pointed out that the company has a potential to expand outside the US.
“Gaming is highly regulated here. And AutoLotto’s approach is ideal. … But other markets offer the potential to expand more broadly, even beyond the lottery.”
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