China Lottery Industry Market Foresight and Investment Strategy Report, 2013-2017

As a sun rising industry, the lottery industry greatly promotes the development of telecom industry, financial industry and media and advertising industry and brings significant social benefit. Meanwhile, China lottery industry will have a sustainable development along with the richer non-paper lottery products, penetration of the third-party mobile payment platform, enlarging lottery market, updating lottery types, plentiful lottery buying channels, strong entertainment, flexible adjustment of lottery market, enlarging lottery consumer group and enriching lottery cultural content. In spite of this, the publishment of Implementations on Lottery Management Regulations in January, 2012 enhances the legislative management of lottery industry. What’s more, it provides a better institutional guarantee for the development of lottery industry that the safety of non-paper lottery operation platform is increasing. China lottery industry is stepping into a new stage of stable growth and will de

China lifts the ban on lottery since 1987. With the deepening reform and opening-up, China lottery industry gains a leaping development. In 2007, the sales volume in China ranks the fourth in the world with an annual sales volume of over 10 trillion Yuan. Since then, the sales volume of China lottery grows annually. And in 2011 the total sales volume of China lottery breaks through 20 trillion Yuan. The number of lottery consumer in current China is 200 million and the per-capita lottery consumption is increasing. It can be predicted that the total sales volume in lottery market will greatly increase along with the abundant lottery types and increasing bonus.

Data from China Ministry of Finance shows that the total sales volume of China lottery in 2011 is as high as 221.582 billion Yuan with a year-on-year growth rate of 33.3% which far exceeds the growth rate of the global lottery sales volume and top in the world. Among which the China welfare lottery is 127.797 billion Yuan with a year-on-year growth rate of 32.0% while the China sport lottery is 93.785 billion Yuan with a year-on-year growth rate of 35.0%. View from the product category, the sales revenue of numeric lottery is 142.757 billion Yuan which is 64.43% of the total revenue; the sales revenue of instant lottery is 40.006 billion Yuan which takes 18.05%; for the quizzes type lottery it is 21.805 billion Yuan which take 9.84%; and for the China welfare online lottery is 17.014 billion Yuan which takes 7.68% and with a year-on-year growth rate of 82.5%.

View from the sales territory of lottery industry, the lottery industry has less impact from the economy developing degree but much impact from population mobility in a certain region. The major sales territories for China lottery industry are cities. Together with the equipment requirement of non-paper lottery selling for lottery industry, the sales volume of China lottery industry mainly from big and middle size cities. View from the lottery sales volume in 31 provinces in the year of 2011, the lottery sales volume tops in Jiangsu, Guangdong, Shandong, Zhejiang, Liaoning, Beijing and Henan. Among which the year-round lottery sales volume in Jiangsu and Guangdong exceeds 20 billion Yuan. On the other hand, it reflects that rural market space to China lottery industry is large.

As a sun rising industry, the lottery industry greatly promotes the development of telecom industry, financial industry and media and advertising industry and brings significant social benefit. Meanwhile, China lottery industry will have a sustainable development along with the richer non-paper lottery products, penetration of the third-party mobile payment platform, enlarging lottery market, updating lottery types, plentiful lottery buying channels, strong entertainment, flexible adjustment of lottery market, enlarging lottery consumer group and enriching lottery cultural content. In spite of this, the publishment of Implementations on Lottery Management Regulations in January, 2012 enhances the legislative management of lottery industry. What’s more, it provides a better institutional guarantee for the development of lottery industry that the safety of non-paper lottery operation platform is increasing. China lottery industry is stepping into a new stage of stable growth and will definitely gain a better development space.

Here, we’d like to express our sincere gratitude to National Statistics Bureau of China, International Information Institute, National Institute of the Ministry of Commerce, National Tsing Hua University Library, Institute of Market Economy of the State Council Development Research Center, and Beijing Qinghua Forward Market Research Center, etc. Thank you so much!

Qianzhan Business Information Co., Ltd. Industry Research College
Research Team of Lottery Industry