INSIGHT
“Those at the
younger end of the
spectrum see the
value in winning
£1,000 per day
for life. If you take
a 25-year-old and
take the average life
expectancy of 80
years, they would
win more than £20m
over their lifetime”
hasn’t divulged much detail, it says
the top prize is likely to be “thousands
of pounds every month for at least 25
years”. Although Camelot says the
game is an “entirely new proposition”
to its portfolio, it acknowledges it isn’t
a new concept.
“We’ve been closely examining
what is done in other countries where
this type of game is hugely popular –
particularly in the US and Australia,”
says James McGrath, communications
manager at Camelot. “These types of
games appeal to people who dream
of lifelong financial security. This is
why we believe it will round off our
portfolio perfectly, enabling winners to
benefit from a regular, fixed amount of
money over a set number of years.”
Playing catch-up
While the forthcoming game may be
the first in the UK from an official
lottery, both Lottoland and Zeal
Network’s MyLotto24 already offer
punters the chance to bet on US
annuity lottery Cash4Life, with a
top prize of £1,000 per day for the
rest of the winner’s life. “This is not
innovation from Camelot, it is them
playing catch-up,” says Nigel Birrell,
CEO of Lottoland.
The question is, could an annuity
lottery allow Camelot to catch up
when it comes to where it wants
its sales to be? Indications from
the secondary lottery providers
are promising.
Lottoland was the first secondary
lottery operator to offer bets on
Cash4Life in the UK, launching
its product back in April 2016. Of
its performance so far, Birrell says:
“Cash4Life is one of our consistently
steadily performing jackpot offerings,
not as popular as our leading products
but definitely a core part of our overall
product portfolio.”
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iGB Affiliate Issue 71 OCT/NOV 2018
MyLotto24 began offering bets on
the lottery in the middle of last year.
Blerina Essen, managing director
of MyLotto24, says most of the
customers betting on Cash4Life with
MyLotto24 are using subscription
products, suggesting it may attract a
more loyal following than lump sum
jackpot draws, which many only
play when the prize has reached a
certain level.
Millennial magnet?
There’s also a possibility annuity
lotteries could help attract more of
the much-coveted millennials. “Those
at the younger end of the spectrum
see the value in winning £1,000 per
day for life,” says Birrell. “If you
take a 25-year-old and look at the
average life expectancy of 80 years,
they would win more than £20m over
their lifetime. Not surprisingly, those
in the age brackets 18-23 and 24-30
over-index against the average lottery
demographic and our silver surfers
under-index here.”
Indeed, when a Canadian woman
won a lottery draw she entered to
mark her 18th birthday in March this
year, she made international headlines
after being given the choice of a $1m
lump sum payout or $1,000 per week
for the rest of her life. She chose the
weekly sum after taking advice from a
financial adviser.
Financial security is a big attraction
for players of all ages, says Essen. “It
doesn’t change your lifestyle as much
as a big jackpot but you have that cash
comfort. That is why people like it.
Birrell adds that Cash4Life also has
better odds than many other games.
“As Cash4Life has a format of match
five from 60 and then for the CashBall
one from four, the odds to win the
jackpot are very attractive at one in
22m – that’s more than twice as good