No matter where you are in the world, most countries offer a lottery experience of some description.
From the Power Ball in the US with its billion-dollar jackpots to the Euromillions in Europe, most of us are very familiar with the concept of paying a small amount of money in exchange for potentially winning a life-changing prize.
However, it is scratchcards that are a staple of the lottery world, offering a fun, quick, and affordable chance at winning prizes ranging from a few pounds to million-pound jackpots.
But have you ever wondered how scratchcards are created and how they ensure fairness while still being profitable for the companies behind them?
The gaming industry has always been quick to adopt new trends and innovations, and this is particularly evident in regions where the sector is rapidly expanding.
For example, the Philippines is becoming a hub for iGaming development, offering fresh perspectives on digital gambling. If you're curious to explore these advancements, this list of new iGaming brands in the Philippines provides valuable insights into the latest trends shaping the industry.
Here in the UK, new card designs are issued every month in both the real world and digitally. So, just how does a brand new scratch card evolve from an idea in somebody’s head to being sold to you in your local shop?
And what are the systems that determine where the jackpot winning cards end up?
Concept to Design – Stage 1
Like all good ideas, the creation of a scratchcard begins with brainstorming the theme and design.
From the outset, lottery companies and scratchcard manufacturers know they need to create engaging and visually appealing games that cater to a broad audience. After all, the name of the game is to sell as many as possible!
Themes may revolve around seasonal events, popular trends, or timeless motifs like luck and treasure. For example, you might see Christmas-themed cards in December or cards inspired by TV shows, films, or sports.
Once the theme is chosen, the game format is designed. This includes deciding how many prize tiers there will be (e.g., £1, £5, £50, or the jackpot), how many tickets will be produced, and how many of each prize type will be distributed.
A key consideration at this stage is striking a balance between making the game attractive to players and ensuring profitability. For example, a game might promise a 1 in 4 chance of winning something, but that “win” could be the price of the card itself rather than a substantial payout.
Now that the theme, design and prizes have been decided, companies move on to the maths behind the card.
The Maths Behind The Cards
Scratchcard odds are carefully calculated before production begins. This involves defining the “prize pool,” which is the total amount allocated to winners, and the “payout percentage,” which determines how much of the revenue from ticket sales is returned to players as prizes.
For example:
A scratchcard with a payout percentage of 65% means 65p of every £1 spent on tickets will be paid back to players in winnings.
If 10 million cards are printed and each costs £1, the total revenue is £10 million.
In this case, £6.5 million will be paid out in prizes, with the remaining £3.5 million covering production costs, retailer commissions, and profit for the lottery operator.
The odds of winning are built into the game's structure. Let's say the card offers prizes ranging from £1 to £100,000:
There might be 100,000 prizes of £1, 10,000 prizes of £10, and just 10 jackpot prizes of £100,000.
The odds of winning the jackpot would then be 1 in 1,000,000 (10 prizes out of 10 million tickets).
However, overall, a customer has an 11% chance of winning a prize, as there are 110,010 of them up for grabs in total.
These calculations ensure that while players have a fair shot at winning, the game remains profitable for the operator.
Randomness and Fairness
In the UK, scratch cards are distributed nationwide, so companies have to ensure that all of the winning tickets are not lumped together and end up at just one point of sale.
To ensure this does not happen, randomness is crucial. Each scratchcard game is pre-determined, meaning the winning and losing tickets are decided before the cards are printed. This might seem counterintuitive, but it’s an essential part of ensuring fairness and compliance with gambling regulations.
The randomness is achieved through computer algorithms called Random Number Generators (RNGs). These RNGs assign winning and losing tickets according to the game's odds.
For example, if 1 in 4 cards is supposed to win, the RNG ensures that the winning tickets are distributed randomly throughout the print run.
Importantly, randomness doesn’t mean every fourth card will win. Instead, the odds apply across the entire production batch. You might buy two winning cards in a row or go through 10 losing cards before finding a winner—it’s all down to chance.
Printing The Tickets
Once the winning and losing tickets are determined, the scratchcards are printed. This involves several layers of security to prevent tampering and fraud.
Each ticket is printed with a unique barcode that verifies whether it’s a winner and the prize amount. When a winning ticket is scanned at a retailer, the system cross-references the barcode with the lottery operator's database to confirm its validity.
The scratch-off panels covering the numbers, symbols, or prizes are made from a latex-like substance that’s easy to remove but hard to replicate. Beneath the panel lies the information determining whether the card is a winner.
To prevent fraud, the cards may include microtext, holograms, or special inks that are difficult to duplicate.
Specialised companies handle the printing process under strict security measures. For example, a popular UK scratchcard printer, Scientific Games, operates facilities with high-tech surveillance and limited access to ensure the integrity of the tickets.
Distribution
Once printed, the scratchcards are shipped to retailers across the UK. This includes corner shops, supermarkets, and petrol stations.
The cards are also added to online platforms, where digital versions of scratchcards follow a similar process but eliminate the need for physical printing and distribution.
For physical cards, retailers earn a commission on each sale, creating an incentive to display them prominently.
Online scratchcards, on the other hand, rely on features like animations, sound effects, and bonus rounds to replicate the tactile appeal of physical cards.
Unclaimed Prizes
Despite huge marketing efforts and updates about how many jackpots are still available, some scratchcards do not sell out.
Each new run has an expiration date, and if all the cards are not sold, there is a chance that some prizes will go unclaimed.
When this happens, unclaimed prize money is typically returned to the lottery operator and used to fund good causes, such as education, health, and community projects.
An Intricate Process
The science behind scratchcards is far more intricate than meets the eye. From careful planning and mathematical precision to rigorous security measures and regulatory oversight, every step is designed to ensure fairness and maintain trust.
Whether you’re scratching a festive card at Christmas or trying your luck online, you can be sure that an incredibly complicated process has brought that card into your hands.
Next time you play, take a moment to appreciate the thought and technology behind that simple, scratchable surface.