The Next Generation Lottery

BetProtocol is building a revolutionary back-end for all sorts of gaming systems, from sports betting, to ESports, to lottery. Today, we are going to talk about how legacy lottery systems can leverage our technology to cut costs and increase transparency. There are many reasons to want these improvements, but perhaps the best reason is that it will allow lotteries to donate more to the charities that they support.

There are several factors that lotteries need to take care of to make sure that the games are fair and compliant: age restrictions, sources of randomness, and auditing of the intakes and payouts to name just a few. With BetProtocol, all of these issues can be handled by our back-end system, drastically reducing costs and man-power requirements.

Lottery is a big business, accounting for $121 billion dollars in global revenue in 2014, and it has continued to grow at a compound annual growth rate since then by around 8.85%. Games such as EuroMillions continue to draw huge numbers of players, receipts, and payouts. We believe this trend will only continue. What most casual lottery players don’t realize, is that a significant portion of the lottery’s revenue goes directly to charity.

For example, EuroMillions helps millions of people in European countries by donating a percentage of their receipts to charity through their Good Causes program.


Française des Jeux, the French National Lottery, is committed to developing athletes with sponsorship programmes, providing social support through sport and helping disabled people access sports. It achieves these aims through funds from games like EuroMillions, which are distributed by the lottery’s foundation. The company also sponsors the Française des Jeux professional cycling team, which was founded in 1997.


The Portuguese Department of Games runs lotteries such as EuroMillions and donates the majority of net income to government departments who distribute the funds in the areas of health, sport, culture and social issues. Of the money provided for beneficiaries across Portugal and its islands, 28% is pledged to Santa Casa Misericordia de Lisboa, a charity dating from the 15th century which runs hospitals and other health centres, as well as supporting a wide range of other projects.

Other countries that run these programs include: The UK, Austria, Belgium, Ireland, Luxembourg, Spain, and Switzerland.

As we’ve said before, BetProtocol can enable gaming firms, including lotteries, to reduce their back-end spend from up to 40% of revenue down to single digits of revenue. That’s a lot of cost savings. In lottery, that specifically translates to more money donated to charity, simply by cutting costs. What’s even better, is that we will be able to increase compliance and transparency while doing so. It’s a win-win!

Here’s how:

Ticket Generation & Purchasing (with logs/receipts already tied to identity)

BetProtocol users will be able to use their KYC’ed wallet and identity to purchase lottery tickets directly through a smart contract. Since the KYC is already done on the player, and only players above 18 are allowed to purchase lottery tickets, age restrictions are met. Not only that, but we can prove that the age restrictions are met, at any time in the future for auditing (since it is recorded in the blockchain). Current lottery ticketing methods cannot. You buy a ticket at a store and it’s done. If the store clerks didn’t check ID, well, there’s no way they can prove that they didn’t sell a ticket to an underage player.

BetProtocol’s Lottery whitelabel will automatically generate lottery tickets on-the-spot, through a set of smart contracts. The ticket itself will be just an event log, or a data string that is linked to the player’s wallet and identity. There is no physical paper involved, again, reducing waste and overhead. This will come back into play when we talk about Event Resolution and Payout.

Random Number Generation (Auditable)

BetProtocol will use auditable, independent sources of randomness that are proven to be random. For example, one decentralized solution could be Oraclize.It, who provide sources of randomness that are not only attested by Ledger, but also fully transparent and auditable.


/* Generates a random number based on the last block hash */

function randomGen(uint seed) private constant returns (uint) {

uint256 ret = (uint(keccak256(block.blockhash(block.number-1), seed ))%10**10);

return ret;


With a few lines of code, we can ensure that we have true randomness that is more cost efficient than the current method.

By the way, have you seen the current method?

What a spectacular show! Although we cannot beat the current method in showmanship, we can help to eliminate possible human-error and reduce costs.

A smart contract with an auditable source of attested randomness is trustless and reliable. It is provably fair. Cost savings in this area will be significant, and therefore can and will contribute to more dollars going to charities from reduced operating costs.

Auditing of game rules and parameters

Much like an audited source of randomness, the game rules and parameters will be coded into the smart contracts directly, and anyone who knows Solidity will be able to check it out and verify if everything is ok. Since they will be looking at the actual code that the smart contract uses to function, they will know that it functions exactly like this and no other way. With audited smart contracts, it is fully transparent the way that the game functions and anyone can check.

Event Resolution & Payout

Currently in lottery, event resolution and payout are two steps that are separated by a layer of human verification. The winner with the winning ticket needs to go to the lottery office and present their ticket. Then authenticity needs to be checked, and if passing, the winner gets his jackpot.

This process requires a lot of time and money.

On BetProtocol, once the winning numbers are sourced from the audited random number generator, the smart contract will check if any winning tickets were issued. If it finds one or more, then it checks the wallet address(es) of the winner(s) linked to the winning ticket(s), and transfers the winnings. A portion of these funds are diverted to a charity address for future distribution. All of this happens automatically, within 30 seconds, and for a cost of less than $5 in transaction fees.


BetProtocol allows players and lottery operators to generate automated reports from things ranging from tax liability to reports on receipts, gaming statistics, and percentages and payouts to winners and charities. These automated reports will indeed translate to immense cost savings, time savings, and reduced compliance burdens.

In Summary:

Lotteries are a big business, and they contribute a lot of money to charities all over the world. BetProtocol can help lotteries reduce cost burdens, and therefore enable them to give even more than they already are to charitable causes.

Thanks for reading!

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