China lottery sales drop for first time in two years in March

Wednesday 22nd of April 2015

Sales in China’s booming lottery market declined 6.3 percent to RMB30.81 billion ($4.9 billion) in the first year-on-year drop in more than two years after the government launched a crackdown on online sales.

However, overall Q1 sales were up 18.5 percent to RMB 94.8 billion.

Welfare sales dropped 5 percent to 17.82 billion in March and accounted for 57.8 percent of total sales. Lotto games made up the lion’s share of total revenue at 68.7 percent.

Sports lottery sales were down 8 percent to RMB 12.99 billion.

The March drop was the first year-on-year decline since February 2013 and follows the government’s decision to clamp down on illegal online lottery sales.

Although estimates vary on how much of the RMB 382.4 billion ($61 billion) in 2014 sales were actually generated online, the amount is thought to have been “substantial.” However, industry insiders have said the existing system was badly flawed and the suspension may pave the way for a much needed overhaul.

E-commerce giant Alibaba, New York Stock Exchange-listed online lottery company 500.com, Tencent and others all stopped online sales following the government decree.

Lottery Crackdown China 500.com