Lotto Spring or Pro spring? While online lottery is not nothing new, this lottery site caught my attention due to the promotion by some of its members and it looks very MLM styled. While this is a review of Lotto Spring, I think it also serves as a simple case study for the online lottery business.
Name: Lotto Spring & Pro Spring
CEO: Jamie Mathar
Product: Online Lottery Tickets
Price: $33 euro a month for Lotto Spring Membership, $66 euro a month for Pro Spring Membership
How Lotto Spring Operates?
You know how regular lottery games work? When you buy a lottery a ticket for a lucky draw, you will be ask to pick 5 numbers from 1 to 50 and 2 numbers from 1 to 11. During the draw, 7 numbers will be randomly drawn. If all 7 seven numbers you chose are picked in the draw, you win the grand prize that is usually in millions dollars. The rules and system can be a bit different depending which lottery you playing but the basic principle is the same.
You can basically guess how improbable winning the grand prize can be. However, the statistics will not stop people. Millions of people would spend money every week on lottery tickets, hoping to become overnight millionaires but only a handful or none will win.
Who pays for the prize money in lottery?
This is a few win, many will lose business model where odds are stacked against the consumers that buy the lottery tickets. Usually about 50% of the money from selling the lottery tickets are added to the grand prize funds with the remaining money for the organising body to run the business.
Playing on Online Lottery Game Sites
Online Lotteries like Lotto Spring works pretty much the same way. Lotto Spring is not linked with EuroMillions but draw results are from the official EuroMillions transnational lottery to prevent any allegations of fudging draw results.
(side note: You can actually buy online lottery platform like Lotto Spring from companies that make online gambling sites and brand it as your own.)
The $33 euro a month Lotto Spring membership gives you one ticket that is eligible to win for 4 weeks of draw results. The $66 euro a month Pro Spring membership is the same with more so called “perks” These perks are what attract people to buying online lottery tickets than the regular lottery that you can buy from your regular convenience store. Some of the perks are made available mainly due to use of online concepts that regular hard copy lottery ticket can’t deliver.
The idea behind the perks is to make it seem like there is more chance to win in the online lottery or better consolation prizes even if you don’t win. Different online lottery operators will have different gimmicks to achieve this.
The syndicate system is a common perk feature that Lotto Spring also uses. When you join the Lotto Spring or Pro Spring membership, you will be put in a team of 50 people. Say you win the $5 million euro draw. Yourself will get $1 million euro from the draw and the rest of the $4 million euro will be split with your 49 other team members. So if one person in your team of 50 wins the draw, you can expect to collect the split winning of $80,000 euro.
Another perk that is common in online lottery sites is sure win tickets or they call it blitz tickets in Lotto Spring. This are extra tickets that guarantee you will win money even if none of the number you choose did not appear in the draw. Off course, the amount is much smaller. Like $1 euro if not a single number you pick appears in the draw.
The Social Referral Perks in Lotto Spring
Did you know? You can actually join for free to be affiliates to most online lottery sites. Every time you refer customer to the site, you get a cut from the lottery ticket sale from that customer.
However, this is not available for Lotto Spring. Instead a MLM styled matrix referral concept is used. Unlike regular affiliate business model where you can join for free, you have to join the Lotto Spring membership or Pro Spring membership in order to participate in referrals benefits.
For your referral effort, you are given blitz points that can be converted to blitz tickets that I mentioned earlier. Also, if you refer 3 paying members to Lotto Spring membership you get refunded your $33 euro of your membership fees and $66 euro if you refer 3 paying members to Pro Spring membership.
Besides the syndicate system, you can also earn 10% of the prize money if your direct referrals win prizes and 5% if your referral’s referral win.
If You Win, Will You Get Your Winnings?
Obviously the worst case to know for sure is to hope to win and see if you can collect your winnings.
Please note that online scam lottery sites are aplenty. Many presume that larger sites will not forfeit their winnings when they have enough customer base to guarantee payout to winners.
That is not true, nor a good enough guarantee.
Online Lottery sites should be able to payout winnings regardless of customer base when they are retail partners of official draws or if they are independant: loses due the lottery winnings should be covered by insurance hedging companies. Customer base is not a valid factor. Also notice I use the word “should” because it can be difficult to determine if online lottery sites can actually cover or hedge their losses due to winnings and there many third factors that can screw up the guarantee.