Please note that if you intend to start this type of business, it is advisable to first look at the existing laws and zonal regulations in the country to know what is expected of you. The bottom line is that you need to pay a visit to the regulatory bodies in Alberta to know what you need to do before you can legally launch your lottery business.

You can start your lottery business from a small town in Alberta, Canada and if you are good at what you do, it won’t be too long before your brand becomes a nationally recognized brand especially if you go into franchising.

20 Steps on How to Start a Lottery Business in Canada

  1. Understand the Industry

Lottery companies operate lotteries and sell lottery tickets. A lottery is defined as a prize draw that players must pay to enter, with winners drawn randomly by lot. Organizations that primarily operate lotto-style games and football pools are also part of the Global Sports Betting and Lotteries industry.

Lotteries in Canada are administered by five regional organizations; the Atlantic Lottery Corporation (which serves Atlantic Canada), Loto-Québec, the Ontario Lottery, and Gaming Corporation, the Western Canada Lottery Corporation (which serves Western and Northern Canada, excluding British Columbia), and the British Columbia Lottery Corporation.

The five regional lotteries are members of a consortium known as the Interprovincial Lottery Corporation, which administrates national games, including the flagship Lotto 6/49 and Lotto Max. The five lotteries offer draw games, scratch cards, and sports betting—the latter primarily under the brand Sport Select.

Research conducted by IBISWORLD shows that the Global Sports Betting and Lotteries industry has maintained solid growth during the last five years, as major markets, such as Europe and North America, experience economic recoveries. In the past, these markets have been held back by various events, including the European debt crisis, the United States government shutdown and structural economic shifts that have led to sustained high unemployment.

However, the United States experienced post – recessionary growth at the beginning of the five-year period, and European economies started slowly recovering during the latter half of the period. At the same time, developing regions of Asia, the Middle East and South America have recorded above-average growth in gaming activity

If you intend running your lottery business online, then you must work with software developers to help you build a customized lottery software that you can use. You should ensure that your website is user friendly and can easily be translated to different international languages. The good thing about online lottery platform is that it is open to people from far and wide to play, and it is highly profitable because loads of people play to win the few prizes available.

Lastly, when shopping for a location for your lottery office in Alberta, it is important to choose a location that is in the midst of a densely populated medium and low income area. This is important because the people who play lotteries are basically found in this category.

You should also ensure that your office is well equipped and easily accessible to the general public. The truth is that if your office is not well furnished and equipped, people might doubt if you have the capacity to pay them when they win your lottery prize.

  1. Conduct Market Research and Feasibility Studies

  • Demographics and Psychographics

The demographic and psychographic composition of those who patronize lottery centers cut across groups and individuals hence the demographic composition for a lottery business is all encompassing. The truth is that when it comes to lottery and sports betting generally, there is indeed a wide range of available customers; every adult both male and female are potential clients.

  1. Decide Which Niche to Concentrate On

In as much as there are no distinct niche when it comes to lottery, a lottery company may decide to choose one or more areas where they can specialize in and some of the areas are;

  • Draw games
  • Scratch cards
  • Sports betting

Please note that it is common to find lottery centers providing facility for people to play video games, sell food, alcoholic and nonalcoholic beverages, and sport wares and supplies.

The Level of Competition in the Industry

The competition that exists in the lottery line of business goes beyond competition amongst lottery companies, but also with every player in the games, sports and leisure industry who also provide betting and gambling services. So, it will be right to say the competition in the lottery and sports betting industry is tough.

The truth is that no matter the level of competition in an industry, if you have done your due diligence and you brand and promote your services or business properly, you will always make headway in the industry. Just ensure that you are transparent, winners share their testimonies, you don’t delay in making payment and you know how to attract and reach out to your target market.

But over and above, there are several lottery centers scattered all around Alberta and other provinces in Canada. So, if you choose to open your own lottery business in Alberta, Canada, you will definitely meet stiff competition.

  1. Know Your Major Competitors in the Industry

Here are some of the most popular lottery companies in Alberta, Canada;

  • Stars Lottery
  • Western Canada Lottery Corporation
  • Odds Shark
  • Lottery Booth
  • Big Brothers Big Sisters Dream Home Lottery
  • Full House Lottery Dream Homes
  • Alberta Lottery Fund
  • Alberta Gaming, Liquor & Cannabis
  • Dreamlife Lottery Home
  • Alberta Children’s Hospital Lottery Home
  • AGLC

Economic Analysis

If you are looking towards successfully launching a business and maximizing profits, then you need to ensure that you get your economic and cost analysis right and try as much as possible to adopt best practices in the industry you choose to build a business in.

Lottery business has been in existence from a while and it is indeed a competitive business, as a matter of fact, you will come across several lottery and sports betting centers when you go out there sourcing for a facility to play lottery or buy lottery tickets.

So, if you are mapping out your economic and cost analysis, you should carry out thorough market survey and costing of the required amount needed to build a standard multipurpose lottery arena, secure the required lottery and gaming tools and equipment and also the cost to successfully run the business.

Over and above, if you are considering starting a lottery business, then your concern should not be limited to the cost of registering the business, securing the required license, leasing and equipping the facility, purchasing the needed machines and gaming – tools, but also on branding and on how to build a robust clientele base. The truth is that if you are able to build a robust clientele base and far-reaching business network, you are sure going to maximize profits in the business.

  1. Decide Whether to Buy a Franchise or Start from Scratch

When it comes to starting a business of this nature, it will pay you to buy the franchise of a successful lottery company as against starting from the scratch. The reason is not far-fetched; people usually are comfortable with and trust a lottery company with track record especially as it relates to winners cashing out easily.

But you may decide to start from the scratch if you so desire though. Besides starting a lottery business from the scratch is straightforward when compared to other businesses that has to do with betting and gambling. With lottery business you should just try as much as possible to get the right business license and permits, secure a standard and secured facility, get the required lottery ticket printing machines, gaming tools and equipment, build business relationship with key stakeholders, then leverage on every marketing tool within your disposal especially the internet when it comes to marketing your services.

Please note that most of the big and successful lottery companies around started from the scratch and they were able to build a solid business brand. It takes dedication, hard work and determination to achieve business success.

  1. Know the Possible Threats and Challenges You Will Face

If you decide to start your own lottery business in Alberta today, one of the major challenges you are likely going to face is the presence of well – established and national lottery companies and other players in the gambling, gaming and sports betting industry that also offer same services as you do. The only way to avoid this challenge is to create your own market.

Some other challenges and threats that you are likely going to face is economic downturn; if the economy is in bad shape, history has it that lottery companies and the likes usually struggle to maintain their old customers or even welcome new customers. So also, unfavorable government policies can also hamper the growth of your lottery business.

  1. Choose the Most Suitable Legal Entity

If you choose to start your business in Canada, it is important to note that there are only four basic forms of business ownership you can build your business structure on, and they are the sole proprietorship, partnership, corporation and cooperative.

You need not get confused on which will best suit your business idea because what you intend achieving, and the type of business you want to build are some of the key factors that will help you make a choice on a legal entity to choose for your business.

Having said that, here are some of the factors you should consider before choosing a legal entity for your business; limitation of personal liability, ease of transferability, admission of new owners and investors’ expectation and of course taxes.

  1. Choose a Catchy Business Name from the ideas Below

When it comes to choosing a name for your business, you should be creative because whatever name you choose for your business will go a long way to create a perception of what the business represents. Typically, it is the norm for people to follow the trend in the industry they intend operating from when naming their business.

If you are considering starting your own lottery business in Alberta, Canada, here are some catchy names that you can choose from;

  • Sure Win® Lottery Company
  • Everyday People® Lottery Services Company, LLC
  • Alberta Connect® Lottery Services Ltd.
  • Marple Lotto® Lottery Services Ltd.
  • Lucky Star® Lottery Services Co.
  • Red Line® Lottery Services Group
  • Green Rollers™ Lottery Company, LLC
  • King’s Arena® Lottery Services Co.
  • Mariah Jared® Lottery Services Company
  • Winner’s Delight® Lottery Services Company
  • Tim® Lottery Services Company
  • George Winston™ Lottery Services Ltd.
  1. Discuss with an Agent to Know the Best Insurance Policies for You

In Alberta, Canada and in most countries of the world, you can’t operate a business without having some of the basic insurance policies that are required by the industry you want to operate from. Thus, it is imperative to create a budget for insurance and perhaps consult an insurance broker to guide you in choosing the best and most appropriate insurance policies for your business.

Here are some of the basic insurance policies that you should consider purchasing if you want to start your own lottery business in Alberta, Canada;

You can contact the following leading insurance companies in Alberta, Canada to purchase insurance policies for your lottery business;

  • Intact Insurance
  • Desjardins
  • Belairdirect
  • Aviva
  • TD Insurance
  • Economical Insurance
  • RSA Group
  1. Protect your Intellectual Property With Trademark, Copyrights, Patents

If you are considering starting your own lottery business in Alberta, Canada, usually you may not have any need to file for intellectual property protection/trademark. This is because the nature of the business makes it possible for you to successfully run it without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties.

But if you just want to protect your company’s logo and other documents or software that are unique to you or even jingles and media production concepts, then you can go ahead to file for intellectual property protection.

  1. Get the Necessary Professional Certification

From a general perspective, you do not need professional certification before you can be allowed to legally start a lottery business in Alberta, Canada. It is a business that is open to both the schooled and unschooled; both the skilled and the unskilled hence there is no need for a special professional certificate.

  1. Get the Necessary Legal Documents You Need to Operate

It is a fact that you cannot successfully run any business in Alberta, Canada without the proper documentations. If you do, it won’t be too long before the long hands of the law catches up with you. These are some of the basic legal documents that you are expected to have in place if you want to legally run your own business in Alberta, Canada;

  1. Raise the Needed Startup Capital

Starting a lottery business can be capital intensive even if you choose to start on a small scale. If you choose to start the business on a large scale with a standard and well – equipped facility and over a handful of full-time employees, then you need to source for fund to finance the business because it is expensive to start a standard large – scale lottery business.

No doubt when it comes to financing a business, one of the first things you should consider is to write a good business plan. If you have a good and workable business plan document in place, you may not have to labor yourself before convincing your bank, investors and your friends to invest in your business. Here are some of the options you can explore when sourcing for startup capital for your lottery business;

  • Raising money from personal savings and sale of personal stocks and properties
  • Raising money from investors and business partners
  • Sell shares to interested investors
  • Applying for loan from your bank
  • Pitching your business idea and applying for business grants and seed funding from, government, donor organizations and angel investors
  • Source for soft loans from your family members and your friends.
  1. Choose a Suitable Location for your Business

Even though you can afford to start a lottery business from any part of Alberta, Canada, when it comes to choosing a location for your lottery business, the rule of thumb is that you should be guided by the ease of securing license for the location. Of course, if you are able to start your lottery business in the right location for such business, you won’t struggle to make headway with the business.

It cannot be overemphasized that the location you chose to start your lottery business is key to the success of the business, hence entrepreneurs are willing to rent or lease a facility in a visible location where people have the required purchasing power and lifestyle.

Before choosing a location for your lottery business, ensure that you first conduct thorough feasibility studies and market survey. The possibility of you coming across similar business that just closed shop in the location you want to open yours can’t be ruled out.

This is why it is very important to gather as much facts and figures before choosing a location to setup your business. Having said that, these are some of the cities in Alberta, Canada where you can locate your lottery services business;

  • Albert
  • Calgary
  • Strathcona County
  • Canmore
  • Medicine Hat
  1. Hire Employees for your Technical and Manpower Needs

There are no special technology/equipment needed to run this type of business except for lottery machines, ticket printing machines and relevant software applications. You will also need computers/laptops, internet facility, telephone, fax machine and office furniture (chairs, tables, and shelves) amongst others, and all these can be gotten as fairly used.

As regard leasing or outright purchase of an office facility, the choice is dependent on your financial standings, but the truth is that to be on the safe side, it is advisable to start off with a short – term rent/lease while test running the business in the location. If things work out as planned, then you go on a long – term lease or outright purchase of the property but if not, then move on and source for other ideal locations.

When it comes to hiring employees for a standard lottery facility, you should make plans to hire a competent Chief Executive Officer/Manager (you can occupy this role), Admin and Human Resources Manager, Software Developer, Ticket Sales and Marketing Officer, Accounting Manager, and Front Desk Officer. These are some of the key employees that you can work with. On the average, you will need a minimum of 10 to 30 key staff members to run a medium – scale but standard lottery company.

The Service Delivery Process of a Lottery Business

The service process involved in the professional Sports Betting and Lotteries Industry depends on the niches or the type of lottery they are offering. Usually, lottery companies sell tickets to customers, and then fix a date to conduct draws where winners will be announced. The price money for the winners is dependent on the lottery company.

Lottery companies make money from the sale of lottery tickets. For every $1, between $0.02-$0.05 goes to the operator. The amount is usually governed by the Lottery and Gaming ACT of the jurisdiction the business is operating under. It is important to state that a lottery company may decide to improvise or adopt any business process and structure that will guarantee them efficiency and flexibility.

  1. Write a Marketing Plan Packed with ideas & Strategies

Generally, running a business requires that you should be proactive when it comes to marketing your goods or services. If you choose to launch a lottery business, then you must go all out to employ strategies that will help you attract customers or else you will likely struggle with the business because there are well – known brands determining the market direction for the lottery and sports betting industry.

So, when you are drafting your marketing plans, make sure that you create a compelling company profile. Aside from your qualifications and experience in the Sports Betting and Lotteries Industry in Alberta, Canada, it is important to clearly state what you have been able to achieve in time past. This will help boost your chances in the market place. Here are some of the platforms you can utilize to market your lottery business;

  • Introduce your business by sending introductory letters alongside our brochure to the public sector, households, and other key stake holders within the location where your lottery company is located.
  • Advertise your lottery business in relevant business magazines, newspapers, TV and radio stations.
  • List your lottery business in yellow pages ads (local directories)
  • Create different lottery tickets for different category of clients in order to work with their budgets
  • Leverage on the internet to promote your lottery business (when you blog regularly on key issues as it relates to your business, people who consider you an expert in the field)
  • Engage the services of marketing executives and sales girls and boys to sell your tickets
  1. Work Out a Reasonable Pricing for your Services & Products

One key factor that will help you offer your lottery tickets at a cheaper price is to ensure that you sell to a large number of people per time. Another strategy that will help you offer lottery services at the right price is to ensure that you cut operational cost to the barest minimum, channel your efforts towards marketing and promoting your brand name.

Aside from the fact that this strategy will help you save cost, it will also help you get the right pricing for your products and services. So also, if you are able to secure business partnership as it relates to getting referrals, then you will be able to get the right pricing and of course maximize profits from your business.

  1. Develop Iron-clad Competitive Strategies to Help You Win

The Sports Betting and Lotteries Industry in Alberta, Canada is a competitive industry, and you must come up with a unique and highly creative strategy to be able to outsmart your competitors in the industry. Part of what you need to do in order to stay competitive in the industry is to continue to make it easy for people to win and also share the testimonies of winners et al.

In other to stay competitive in this industry, you must ensure that your company is transparent and public figures especially in the sports industry work as ambassadors for your company; it will sure give you leverage.

  1. Brainstorm Possible Ways to Retain Clients & Customers

When it comes to business, no matter the industry that you choose to pitch your tent in, one of the easiest ways to increase customer retention and perhaps attract new customers is to produce results and satisfy your customers always. If your customers are satisfied with your products and service delivery, they can hardly source for alternative service providers.

If your services and customer service fluctuate, you are likely going to struggle to get your customers retaining your services. Ensure that you offer your customers incentives if you want to retain them and of course continue to generate repeated sales from them and also to attract new customers.

Part of what you need to do to achieve this is to track progress, results or outputs with the aim of improving on them quickly as the case demands. When it comes to managing your customers and building a loyal clientele base, you should purchase a customized CRM software.

With a customized CRM system, you can easily stay in touch with your clients (you can carry out quick surveys, you can introduce new products and prices to them without any hitch, you can felicitate with them on their birthdays and other anniversaries, you can keep track of their progress, you can send bulk sms and customized e – mails and above all, you can easily receive compliant and feedback from them).

  1. Develop Strategies to Boost Brand Awareness and Create a Corporate Identity

If you are in business and you are not conscious about boosting your brand awareness and communicating your corporate identity, then you should be ready to take on whatever the society portray your business to be. One of the secrets of larger corporations is that they are willing to spend good money to boost their brand awareness and to continue to communicate their corporate identity the way they want people to perceive them to be.

No matter the industry you belong to, the truth is that the market is dynamic and it requires consistent brand awareness and brand boosting cum promotion to continue to appeal to your target market. Here are the platforms you can leverage on to boost your brand and create a corporate identity for your lottery business;

  • Place adverts on both print (newspapers and sports related magazines) and electronic media platforms
  • Sponsor relevant community – based events/programs
  • Leverage on the internet and social media platforms like; Instagram, Facebook, Twitter, YouTube, Google + et al to promote you’re the sales of your lottery tickets
  • Install your Bill Boards on strategic locations all around the locations where you operate
  • Distribute your fliers and handbills in target areas
  • Advertise your lottery business in your official website and employ strategies that will help you pull traffic to the site.
  • Position our Flexi Banners at strategic positions in the locations where your lottery business operates.
  • Ensure that all your staff members wear your branded shirts and all your vehicles and vans are well branded with your company logo.
Ajaero Tony Martins