Chinese Government Looks to Corral Lottery Fraud ahead of Regulations

4 January 2008

According to Chinese media sources, China's ministries of civil affairs and finance, as well as its General Administration of Sports, this week issued a written statement prohibiting institutions from selling lottery tickets online.

Xinhua News Agency reports that the circular was issued in response to growing governmental concern about fraud and lack of regulation.

"It's impossible to know whether a Web site will actually buy lottery tickets for people after they hand over their money," Wang Xuehong, head of Peking University's Institute of Lottery, told Xinhua.

Xuehong added that, at present, China has only provisional regulations on lottery distribution and sales. The country's Legislative Affairs Office of the State Council (LAO), though, has reportedly said that the first batch of regulations -- covering distribution to management of funds -- will be issued sometime this year.

"Other countries and regions put laws in place before the started holding draws," said Ding Feng, deputy head of LAO's department of political science and law, labor social security and legislative affairs. "China did the opposite."

The Xinhua report also said that those who had begun to sell lottery tickets online "prior to the issuance of the circular" will stop their activities with immediate effect or face prosecution and penalties.

The IGN staff continually troll the wires, foreign papers, corporate news alert services and other dark, dusty corners of the Web to bring you the very latest industry news.