China’s online lottery business in flux as operators brace for new regime

China’s online lottery marketplace is in a state of confusion following a joint public statement by eight government ministries and agencies.

On Friday, the Ministries of Finance, Public Security, Industry and Commerce and five other governmental bodies issued a joint statement saying “all institutions, online entities or individuals which provide unauthorized online lottery sales services, either directly or through agents, shall immediately cease such services.”

The announcement also instructed provincial authorities to “investigate and sanction unauthorized online lottery sales in their respective jurisdictions according to relevant laws and regulations.” Any lottery issuance authority planning to engage in online sales needs to first “obtain a consent from the Ministry of Civil Affairs or the General Administration of Sports of China.” Individual operators wishing to provide technical services to enable online sales “must be pre-approved by the Ministry of Finance.”

In January, Beijing ordered provincial lottery administration centers to suspend online lottery sales as of March 1. It was subsequently revealed that some online operators weren’t registering all sales with the provincial centers, apparently as a way to pocket greater profits. Friday’s statement referenced “rampant irregularities” among online operators, some of whom were accused of selling “fraudulent” lottery tickets.