China Bans Online Lottery Sales

CHEN YIKAN

(Yicai Global) Sept. 4 — China’s government has outlawed sales of online lottery products with the release of revised rules on the sector which take effect from October.

Authorities have made it illegal for the first time to sell welfare or sports lotteries online, China’s finance ministry said in a statement. The government is unlikely to allow such sales again any time soon.

A representative of the finance ministry indicated companies or individuals shall not engage in any forms of internet lottery sales business without ministry approval, and no institutions have received any such approvals to date.

China’s lottery industry is monopolized by the state. The civil affairs ministry and sports administration sell such products in brick-and-mortar outlets under the approval and supervision of the finance ministry.

Internet lottery sales used to grow exponentially in China, doubling in 2014 to reach CNY85 billion (USD12.5 billion). However, such sales were suspended with a carpet ban in early 2015. Some online platforms and apps have still sold products at certain times such as during major sports events like this year’s World Cup.

Some firms in the sector had embraced online sales as a new business model, but the new rule makes it clear that unauthorized internet lottery sales are illegal and must be stopped, Su Guojing, founder of China Lottery Industry Salon told Yicai Global.

Editor: William Clegg