I will guide you on how to start a lottery business in nigeria so that you could be able to double your hustle
Stating a lottery business is very challenging and highly lucrative. You need serious capital investment, technical assistance and creative thinking.
There many guidelines, taxation, state and federal regulations. Lottery is gambling and involves the selection of numbers.
The business is legal in some countries and a huge revenue earner for the governments. And in other countries there is an outright ban on such activities.
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 numerics, 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 in nigeria.
There are a few things you need to start the business. You need funds, insurance cover, certificate of incorporation and operational license. Others are employment agreement, business plan, non disclosure agreement and business
The location is critical to the success of the enterprise. The choice location should have access to your potential customers.
To find ideal locations carry out a feasibility study and conduct a survey. Write a lottery business plan and study your competitors.
Ideal geographical locations are urban towns with huge population. Make sure the location is easily accessible and convenient for your customers.
Apart from establishing a terrestrial office you need to leverage on the internet. Online gambling accounts for 50% of sales of a lottery company.
To go online you need a license from your regulatory body. Make sure the category of license you apply for accommodates both terrestrial and online games. Common types of internet games are SMS, USSD, online games and mobile.
Every lottery company needs serious investment in technology. The technology is needed to provide secure services, data storage and game systems. They should be well secured with latest software
This licensing and permit procedure is based on the national lottery regulatory commission of Nigeria. To operate a lottery the company is required to have an operational license and permit.
The company must submit a letter of application to the director general National Lottery Regulatory Commission.
The letter should contain an express of interest in a named lottery business.
The next step is to obtain a prescribed form with a non refundable fee. The fee is determined by the commission based on the category of lotto you want to establish. You submit the completed application form you need with the following documents.
The documents are a certificate of incorporation and particulars of directors (Form C07). Others are a copy of memorandum and article of association.
More documents are evidence of capital base from your bankers and organizational profile. Add evidence of technology to play the lotto, detailed accounting, security system and administration.
You are required to submit evidence of clearance from relevant agencies and detailed rules of your intended lottery game.
a certificate of incorporation
particulars of directors Form C07
a copy of memorandum and article of association
evidence of capital base from bank
organizational profile
evidence of technology to play the lotto
detailed accounting
security system
administration
evidence of clearance from relevant agencies
detailed rules of your intended lottery game
The company should establish a Price Fund account for the named lottery. The statutory payment of 20% of prize value made to the National Lottery Trust Fund to safeguard lottery players.
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.
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.
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.
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.
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.
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.
One of the most important aspects of the business is marketing. 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.
Regards!
how to start lottery business in nigeria was written by Okejiri Emmanuel.
Stating a lottery business is very challenging and highly lucrative. You need serious capital investment, technical assistance and creative thinking.
What Is Lottery Business
Type of gambling in which winners are chosen by drawing of lots, from among those who have paid money to participate. Promotional schemes requiring a consideration (a purchase) to take part, and offering prizes only on the basis of random chance are considered a lottery and are generally illegal.
Is Lottery Business A Legal Business?
In the US it is illegal to operate a lottery, generally defined as a contest in which contestants pay to enter and the prize is awarded at random. The few exceptions include state lotteries and nonprofit organizations' occasional fundraising raffles. ... But you can't run a private lottery in the US.
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There many guidelines, taxation, state and federal regulations. Lottery is gambling and involves the selection of numbers.
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The business is legal in some countries and a huge revenue earner for the governments. And in other countries there is an outright ban on such activities.
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 numerics, 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 in nigeria.
What you need to start a Lottery Business in nigeria
There are a few things you need to start the business. You need funds, insurance cover, certificate of incorporation and operational license. Others are employment agreement, business plan, non disclosure agreement and business
How To Start Importation Business In Nigeria
- license
- Funding
- Insurance cover
- Certificate of incorporation
- Operational license
- Employment agreement
- Business plan
- Non disclosure agreement
- Business license
- Technology
How to Start a Lottery Company
Locating the Business
The location is critical to the success of the enterprise. The choice location should have access to your potential customers.
To find ideal locations carry out a feasibility study and conduct a survey. Write a lottery business plan and study your competitors.
Ideal geographical locations are urban towns with huge population. Make sure the location is easily accessible and convenient for your customers.
Apart from establishing a terrestrial office you need to leverage on the internet. Online gambling accounts for 50% of sales of a lottery company.
To go online you need a license from your regulatory body. Make sure the category of license you apply for accommodates both terrestrial and online games. Common types of internet games are SMS, USSD, online games and mobile.
Lottery Technology
Every lottery company needs serious investment in technology. The technology is needed to provide secure services, data storage and game systems. They should be well secured with latest software
Licensing and Permit
This licensing and permit procedure is based on the national lottery regulatory commission of Nigeria. To operate a lottery the company is required to have an operational license and permit.
The company must submit a letter of application to the director general National Lottery Regulatory Commission.
The letter should contain an express of interest in a named lottery business.
The next step is to obtain a prescribed form with a non refundable fee. The fee is determined by the commission based on the category of lotto you want to establish. You submit the completed application form you need with the following documents.
Documents that Accompany an Application Form
The documents are a certificate of incorporation and particulars of directors (Form C07). Others are a copy of memorandum and article of association.
More documents are evidence of capital base from your bankers and organizational profile. Add evidence of technology to play the lotto, detailed accounting, security system and administration.
You are required to submit evidence of clearance from relevant agencies and detailed rules of your intended lottery game.
Documents
a certificate of incorporation
particulars of directors Form C07
a copy of memorandum and article of association
evidence of capital base from bank
organizational profile
evidence of technology to play the lotto
detailed accounting
security system
administration
evidence of clearance from relevant agencies
detailed rules of your intended lottery game
Post Grant of License or Permit
The company should establish a Price Fund account for the named lottery. The statutory payment of 20% of prize value made to the National Lottery Trust Fund to safeguard lottery players.
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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.
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.
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.
Marketing
One of the most important aspects of the business is marketing. 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.
Regards!
how to start lottery business in nigeria was written by Okejiri Emmanuel.
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