A new study shows that they gambling establishments in the United States may have proper cause to fear the draw of online casinos and Internet gambling.  According to a study conducted by Frost & Sullivan, lottery sales have the potential to increase by a the remarkable margin of 127 percent.  However, the increasing popularity of slot machines has the potential to take away as much as $7 billion in gambling revenue.

In order for state lotteries to increase their margins they must not only have to draw in a new generation of gamblers but they must be sure to retain their current customer base.  Many states depend on lottery revenues to make up gapping holes in their budget.

It may not be hard to for lotteries to retain their current lottery base, largely made up of gamblers from the baby boomer generation.  Baby boomers grew up with the lottery as a primary form of gambling entertainment.  It will, however be very difficult for lotteries to appeal the same way to younger generations.

Younger generations have grown up with the Internet as not only a primary source of gambling entertainment, via online casinos, but as a primary source of entertainment in general.  Gaming at online casinos is far more interactive, offers a wider variety of games, and presents far more opportunities for winning. 

Unfortunately, holding on to baby boomers may present it challenges as well.  The baby boomer generation is gradually moving beyond their primary gambling years.  The past has shown that the peak spending years for people that play the lottery are between the ages of 50 to 64.