Confusion in China’s Online Lottery

The Chinese government demands every operator offering unregistered online lottery to stop its activities.

Three ministries (Finance, Public Security, Industry and Commerce) together with five other governmental bodies released a statement last Friday that says, “all institutions, online entities or individuals which provide unauthorized online lottery sales services, either directly or through agents, shall immediately cease such services”, Chinese gambling news reports.

According to the statement, provincial authorities have to “investigate and sanction unauthorized online lottery sales in their respective jurisdictions according to relevant laws and regulations.”  From now on everyone plans to run online lottery business in China must to obtain a permission from the Ministry of Civil Affairs or the General Administration of Sports of China.

False rumours and running operations

The government initiated a change in Chinese gambling laws in January when ordered to suspend online lotteries with March 1, however it turned out that several online operators chose not to register all sales to increase their revenues. Moreover according to the statement released on Friday, some online operators were accused of selling fake tickets.

Rumours emerged last week that the suspension will be lifted and that boosted website 500’s shares, which though officially not registered, were handed a consent to operate online in 2012. On Monday website 500 released a statement affirming that they are operating legally, “the approval by the Ministry of Finance for the Company to provide online lottery sales services on behalf of the China Sports Lottery Administration Center is valid and has not been revoked or amended as of the date of this announcement.”