Submitted by: Bailey Thompson
Feeling lucky today? With a lottery merchant account, the good fortune is a few steps closer to your doorstep.
Venturing into operating a lottery business seem ideally convenient, but when you go to a bank to apply for a merchant account to be able to get lottery bets through credit card payments, a different scenario comes in. Delving into the world of lottery is a good pale to start understanding the reasons why it’s close to anything but perfect.
To begin, lottery is a form of gambling. Each ticket has a unique number or symbol corresponding to a individual lot. These lots are subjected to a draw, either by a person or a machine, if your lot is the one drawn, then you hit the jackpot.
Lottery first surfaced approximately 200 years before Christ was born. Main purpose was to raise funds for constructing dams, houses, temples, and significant landmarks, ultimately the Great Wall of China, which is now part of the prestigious Wonders of the World list.
Leisure was the driving force of lottery existence in Europe during the Roman Empire. During this period, the elite were the only group of people who can participate in this game. What happens in the tea parties is that each arriving guest receives a ticket, with impeccable dinnerware as the prize pot.
Winning money became the main goal for the Dutch. Every participant had an average of four tickets with a probability of only one of those tickets hitting the prize money. The modern-day name of lottery came from their tongue, loterij, which came from lot meaning fate. It is interesting to note that their staatsloterij still exists and is considered as th e oldest existing lottery.
There are many forms of lotteries. Organizers lure participants into offering prizes which are either money or goods. If all the tickets are not sold, the organizers have to come up with ways to get enough funds to fill the prize money or goods.
Another form is the 50-50 draw wherein the prize will be half of the revenue. This is to ensure that even if all of the tickets were not sold, a prize will still be awarded.
In order to gain more participants to join, a new form emerged. Instead of randomly giving tickets, this involves allowing the participants to choose the numbers that they feel will be drawn. This strategy is the one being adapted today.
High risk, high returns
Most of the lottery operations are run by the government. This is to ensure that the taxes go to the state. In some countries, they have made lottery a legal form of gambling. Casinos are now being established and run by the state.
The thought of winning on a slim chance has an enormous appeal. More often than not, the great anticipation and excitement is what makes lottery tick. Even if you have lots of tickets, the probability of getting drawn is still undetermined.
Since governments have the upper hand in running lotteries, this makes it harder for private operators to get into the zone. One of the levels they’re having a hard time is applying for merchant accounts. Banks already considered lottery as high risk because of its high chargebacks and tax complications, but with the government as the applicant, banks feel a little more secured.
Having a lottery merchant account enables you to accept payments for tickets using via credit cards. Accepting credit card payments is good for business since almost everyone has a credit card. Modern lottery and lottery websites makes the draw using the mark sense technology. Mark sense is an optical reader found within most computer scanners that captures visual information and translates the image into digital information the computer is capable of understanding and displaying. Incorporate mark sense and your merchant account’s payment gateway, you success as a lottery owner and operator is inevitable.
They say success is a combination of luck and your own work. But with a lottery merchant account, it’s not really about the winning, it’s about enjoying the ride.
About the Author: Bailey Thompson works as a freelance financial consultant for an international investor relations company. Also works as freelance financial executive for
Gracefully quit her job at a merchant account provider company.