Chinese authorities should consider regulating online lotteries and tap into a $289.9 billion market, John Sun, CEO of AGTech Holdings recently told Macau News Agency vat the Asia Gaming Summit held in Taipei.
“For this year the current official market is around RMB400 billion with near to 30 percent yearly growth thanks to the 2018 World Cup. But the data itself is not as important as the message, that there is so much potential market for growth, with the government able to get more taxation by regulating the market,” Sun said.
China currently allows two types of lotteries under the Ministry of Finance, the China Sports Lottery and the Welfare Lottery. AGTech is the official service provider for the Chinese government.
Lottery revenue in the country has been rising to RMB245.2 billion in the first half of this year, a 20 per cent yearly rise from 2017. Sports lottery was up 6.1 percent to RMB134.6 billion, while welfare lottery jumped 4.2 per cent to RMB110.6 billion in the first six months of the year, according to Macau News.
China bans other online lotteries.
“As a government you can’t just let illegal operators to come in to China to offer services with the government getting nothing. There’s also no responsible gaming or lottery activities. If authorities regulate it, it is a win-win. It could go to social services, sport installations, etc.,” Sun said.
Sun said AGTech has been in discussions with Chinese officials on how to better monitor and regulate the market and counterpoint illegal operations and demonstrate the untapped potential of the Chinese market.
He also said that he doesn’t believe legalization of online lotteries would hurt Macau gaming revenues.
“It’s a different story, they are different product, with the lottery itself being aimed at raising charity funds for the government. Pay rate for casino products can be as high as 92 per cent. Lottery is a different case,” Sun said.
