UK Lotteries Market Report 2026

Although lottery draws are widely perceived as supporting good causes, players are more likely to be motivated by a specific cause when entering prize draws. Major prize draws typically benefit a single, high-profile charity, providing a clearer and more compelling message than lottery draws that support multiple causes. Lottery operators can address this by focusing their messaging on specific, well-known charities that are likely to resonate with individuals and motivate play.

Prize draw participants who also play the lottery continue to spend the same amount or more on lottery games, indicating that prize draws have not yet cannibalised lottery spend. However, acquisitions and new entrants in the UK prize draw market signal strong future growth, which could increasingly threaten the lottery market and potentially alter player behaviour. To remain competitive, lottery operators should focus on game innovation that integrates prize draw concepts.

Young adults aged 25-34 show high engagement in lottery play, actively participating in various types of lottery games, making them a prime audience for new game innovations. Their use of multiple purchasing channels, including a rise in mobile app purchases, creates opportunities to introduce innovative games both online and through interactive in-store experiences.

This report looks at the following areas:

• Overview of lottery games and prize draw preferences, including growth opportunities among 25-34 year olds
• Lottery draw and scratchcard purchase channels
• Prize draw participation, its impact on consumer spending on lotteries and threat to the lottery market
• Motivations for playing lottery games and prize draws, including strategies to encourage lottery participation
• Perceptions of lottery draws versus prize draws, with a focus on how lottery draws can shift player perceptions and boost engagement

Market Definitions

This Report covers all the products offered by the National Lottery, the Health Lottery and other society, charity and local lotteries. Only the National Lottery and lotteries regulated by the Gambling Commission fall within the scope of this Report, although other lottery-type games are considered where they impact directly on the market.