Several companies that have in recent weeks announced online lottery initiatives partnering with counterparts in China will have to halt operations pending more clarity on the overall legality of operations following a statement this week from the Chinese ministries of finance, civil affairs, and the general administration of sports.
The Chinese news agency Xinhua reported the tough approach by government this week, confirming that the sale of online lottery tickets has been banned in China. According to the report, sales of lottery tickets online will not be permitted, and those companies that have jumped the gun and started operations could face prosecution - not a pleasant or business enhancing prospect as the UK listed company Betex discovered to its cost early last year.
The Xinhua report quoted Wang Xuehong, head of the research institute of lottery at Beijing University, who said that online lottery sales were difficult to regulate. He said: “It’s hard to say whether a website will buy lottery tickets for the buyers after it receives money from them.”