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An Overview of China Lottery Industry
Market Scale
Regulatory Framework
International Lottery Associations
Legal Lotteries

At present, there are two legal lotteries in China: sports lottery issued by China Sports Lottery Administration Centre (“SLAC”) (established in 1994) and welfare lottery issued by China Welfare Lottery Issuing Centre (established in 1987). The government aims to raise funds for sports and social welfare development through the issuance of lottery tickets.

Lottery Authorities

The State Council is vested with the power to authorise the issuance of sports lottery and welfare lottery, and is also the highest authority to grant the rights to issue lotteries. The Ministry of Finance is responsible for administering, regulating and supervising the national lottery industry. The General Administration of Sports of China and the Ministry of Civil Affairs, both reporting to the Ministry of Finance, are responsible for administering and regulating sports lottery and welfare lottery respectively, and have established SLAC and the China Welfare Lottery Issuing Centre respectively pursuant to regulations for issuance of and organizing the sales efforts of sports lottery and welfare lottery.

Regulations

On 1 July 2009, the “Regulations on Administration of Lotteries” (hereinafter the “Regulations”) approved and promulgated by the State Council was being introduced in the Chinese lottery market. The Regulations, being the first administrative regulations designed to supervise the lottery industry, represents a milestone in the development of China’s lottery industry and marks beginning of a new era. The Regulations, by clarifying lottery administrative system, lottery issuance and sales, drawing and prize collection, lottery fund management as well as the penalties with respect to breach of regulations, not only served to promote the regulated and healthy development of China’s lottery market, but also laid a solid foundation for future innovation and breakthroughs in the Chinese lottery industry.

On 9 Oct 2010, the Ministry of Finance has issued two provisional regulations for the administration of paperless distribution of lotteries, namely “Provisional Measures for the Administration of Online Lottery Distribution” (「互聯網銷售彩票管理暫行辦法」) and “Provisional Measures for the Administration of Phone Lottery Distribution” (「電話銷售彩票管理暫行辦法」). These measures not only clarify the behaviors of different authorities and lottery players, they also implied that the Chinese government’s initiative to introduce secure and reliable lottery systems to facilitate the development of the lottery industry.