Is this why Chinese online lottery suspensions were ordered?

The Chinese central government’s directive to provincial heads to review and clampdown on internet lottery sales earlier this month (see previous reports) was motivated by some operators failing to register all their ticket sales, a financial services company surmised this week.

North Square Blue Oak focuses on the Asian markets and issues impacting them, and explains that the directive, and consequent suspensions of the online lotteries, were at least in part caused by certain operators who were not registering all of their sales.

North Square claims that where the odds were strongly against a punter winning (and therefore coming to the notice of the authorities) some operators were keeping the wager for themselves and not registering the ticket sale.

The company takes a positive view of the consequences of suspension and review, saying that it believes the process will be beneficial in uncovering and getting rid of unsuitable and dishonest operators, making for a fairer industry.

Assessing where the Chinese online lottery market may be headed, North Square says it is possible that the government may make sweeping changes that could include higher capital requirements for operators and fairer, more practical and generous provincial commission distributions.

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