Public Crypto BLOG: FireLotto - The International Blockchain Lottery Platform

The global lottery industry grew from $187.1 billion in 2004 to $294.3 billion in 2016, representing a compound annual growth rate (CAGR) of 4.3% per year. In 12 years from 2004 to 2016, lottery sales have declined only once, evidencing the stability of the business. More than 64% of global lottery sales come from Europe and North America.

Concurrently, with growing penetration of the Internet and mobile phone adoption, online and mobile lotteries are growing everywhere. The total revenue of mobile lotteries in 2016 is estimated to be 43 billion, while 44% of the amount is generated in Europe and North America. The pace of technology adoption can be even faster in the developing markets.

A lottery game built on the Ethereum blockchain will be a major innovation in the global lottery industry. The lottery industry holds a 29% share of the global gambling revenue, and is facing challenges due to the growth of the digital economy. Worldwide demand for more transparent, fair services has grown concurrent with the advance of technologies that enable the change. The distributed, decentralized nature of blockchain technology offers tremendous opportunities for financial technology innovation, and, similarly, for gaming industry modernization.

A gaming system built based on the use of the Ethereum blockchain would operate with a high degree of autonomy, and its data and records would be cryptographically stored in a public, decentralized blockchain. Available online and borderless, such a system can resolve several challenges of traditional lotteries.

Blockchain technology can solve trust and fairness issues faced by the lottery industry. As with all centralized services, lotteries have real and perceived trust issues. Some of the most common lottery industry problems are described below.

Fairness
Ensuring fairness of the game remains the biggest challenge. Lottery players may question the possibility of manipulation or fraud, e.g., several possible concerns:

Are the ticket and lottery real?
Is the money really accumulated in one pool?
Is RNG truly random and secure?
Is the jackpot winner real?
Are the prizes paid on time?

FireLotto Platform

FireLotto have built a completely transparent and fully decentralized platform for organizing and conducting a lottery using the blockchain technology and ETH smart contracts for collecting and distributing funds, drawing winning numbers in a random fashion, and paying lottery tickets sales commission to token holders.

The prize pool of the Fire Lotto lottery is formed from 70% of the funds collected from ticket sales. The minimum size of a guaranteed jackpot is fixed—1000 ETH (~ USD 1,000,000) for the 6/45 lottery. If nobody wins the main prize in a drawing, it will be rolled over to the next drawing and increased. The jackpot will keep growing until it finds its winner.

There will be five prize categories with a different prize depending on how accurately the player predicts lottery numbers. All categories starting from 2 will be calculated as percentages of the prize pool. If several winners win the jackpot in one drawing, it will be split between them.

We will offer two types of lotteries: instant lotteries and draw lotteries.

The Roger’s Wheel instant lottery, a mix between the traditional wheel of fortune and a slot machine. In this game, players can place bets ranging from 0,003 ETH (~USD 2.00) to 1 ETH (~USD 1,000.00) [*] and choose a payout rate from 2 to 20, which will be used to multiply their winnings. Next, the player spins the wheel divided into 21 sectors with different payout rates on them. If the wheel stops at the player’s chosen rate, he or she will instantly have the winnings (the bet multiplied by the payout rate) transferred to their cryptocurrency wallet. The player can turn an unlimited number of wheels in one game, which reduces the waiting time and increases the number of tickets bought by the player. The wheel rotates for 20–30 seconds. The randomness of the game is ensured by ETH blockchain-based RNG. Its description will be given later in the text.

We offer three types of draw lotteries: 4/20, 5/36, and 6/45. Our platform allows for the addition of new types of lotteries in the future. The player enters the lottery site with a traditional and user-friendly interface, where he or she can buy almost an unlimited number of lottery tickets and choose numbers for each ticket. Tickets are bought in one click through the user’s cryptocurrency wallet. An Ethereum transaction goes to the smart contract of the chosen lottery, contributing to the prize pool. 70% of all lottery ticket sales are allocated to the prize pool. Table 1 shows data on the distribution of lottery funds.

FireLotto Advantages :

The initial guaranteed prize pool is over USD 1.1 million.
The amount of the prize pool can grow up to dozens of millions of dollars.
A record 70% of funds collected from ticket sales will be allocated to the prize pool.
Neither winning numbers nor lottery tickets can be faked.
Distribution and payout procedures are transparent and supported by smart contracts.
The lottery is based on the ETH blockchain. All the parameters of the lottery are included in the program code, which will be open to anybody willing to check it.
This lottery cannot be banned. You only need Internet access and a cryptocurrency wallet to play it.
A comfortable and user-friendly interface. A game that is played in one click.
A mobile version available.
At the date of the platform launch one ticket costs USD 2.00, a sum that millions of players around the world are accustomed to.
There is no possibility of system abuse.
The Fire Lotto is anonymous.
Winnings of any size are paid out almost instantly.
Winnings are not taxed.
The fact that the lottery platform is decentralized means that the platform will operate independently and autonomously as long as there are gambling enthusiasts, the Internet, and cryptocurrency.
Sales commission payments are secured by smart contracts and provide token holders with an almost endless source of income.
The price of Fire Lotto tokens will constantly increase.

In purposes of raising trust in our lottery, increasing a number of players and a possibility to raise fiat funds we had several successful consultations with the Isle of Man Gambling Supervision Commission. As a result, we received an affirmative statement about a possibility of getting the Online Gambling Regulation Act license for creating and holding internet gambling, including crypto lotteries with the right of acceptance of crypto funds and their free converting to traditional worlds currencies.

The fact of this license opens the following possibilities:

Legal transparency of our business
Fiat funds acceptance from investors to our company account
Usage of the traditional payment services to sell the Fire Lotto lottery tickets (VISA, MasterCard, Qiwi, PayPal, WebMoney and etc.)
Increasing numbers of Fire Lotto players in the world. Period of licensing is approximately 4-6 months.

Token Holder Commission

Fire Lotto token holders are guaranteed to get 10% of the funds collected from ticket sales. Sales commission is distributed after each and every drawing based on the smart contract, regardless of the volume of ticket sales. Yield per token is 1.60 U.S. cents from each 16 million tickets sold, which is more than 20% per annum of the amount of funds invested in Fire Lotto tokens. Considering the fact that more than 150 billion lottery tickets priced at USD 2.00 are sold globally each year, the profitability of Lotto tokens may exceed 50% per annum in the very first year.

Investor Profits :

At the pre-sale stage, Fire Lotto tokens will be sold at a fixed low price
The token holder will receive a commission from each ticket sold in every drawing.
Commission payouts are secured by smart contracts and provide token holders with an almost endless source of income.
The price of Fire Lotto tokens will constantly increase