Contents:

Introduction Executive Summary Definitions & Report Coverage Other Relevant Reports from Access Asia 2 China’s Lottery Market 2.1 Total Market 2.1.1 Total Market: Total Lottery Market Size 2.1.2 Total Market: Market Size by Type of Lottery 2.1.3 Total Market: Per Capita Expenditure by Major City 2.1.4 Total Market: Consumer Expenditure Significance 2.1.5 Total Market: Revenue Disbursement from Each Lottery Ticket 2.2 The Outlook For Lotteries & Organised Gambling in China 2.2.1 Outlook: Trends 2.2.2 Outlook: Forecast Lottery Ticket Sales 3 The Casino Market 4 Current Issues 4.1 Current Issues: Government Control of Lotteries in China 4.2 Current Issues: Legislation 4.3 Current Issues: Welfare Lotteries 4.4 Current Issues: Sports Lotteries 4.5 Current Issues: Lotteries for the Elderly 4.6 Current Issues: One-Off Event Lotteries 4.7 Current Issues: Internet Gambling in China & Hong Kong 4.8 Current Issues: Lottery Ticket Outlet Concessions 4.9 Current Issues: Computerised Lotteries 4.10 Current Issues: The Possibility of Educational Lotteries 4.11 Current Issues: The Problem of Instant Wealth in Chinese Society 4.12 Current Issues: The Prospects for Legal Gambling in Hong Kong 4.13 Current Issues: Liberalisation of Macau’s Gambling Monopoly 4.14 Current Issues: Lottery Hotlines 4.15 Current Issues: Video Game Arcades 4.16 Current Issues: The New Football Lottery 5 Regional Initiatives 5.1 Regional Initiatives: Beijing Municipality 5.2 Regional Initiatives: Guangdong Province 5.3 Regional Initiatives: Heilongjiang Province 5.4 Regional Initiatives: Hubei Province 5.5 Regional Initiatives: Jiangsu Province 5.6 Regional Initiatives: Shandong Province 5.7 Regional Initiatives: Sichuan Province 5.8 Regional Initiatives: Zhejiang Province 6 Consumer Profile 6.1 Consumer Profile: Lottery Ticket Purchaser Profile 6.2 Consumer Profile: Reasons for Purchasing Lottery Tickets 7 SWOT Analysis 7.1 Strengths 7.2 Weaknesses 7.3 Opportunities 7.4 Threats 8 Company Profiles 8.1 Sociedade De Turismo e Diversoes De Macau (STDM) 8.1.1 STDM: Company Details 8.1.2 STDM: Company Background 8.1.3 STDM: Recent Developments 8.1.4 STDM: Financial Results 8.1.5 STDM: Future Strategy 8.2 Hong Kong Jockey Club 8.2.1 Hong Kong Jockey Club: Company Details 8.2.2 Hong Kong Jockey Club: Company Background 8.2.3 Hong Kong Jockey Club: Betting Facilities & Operation 8.2.4 Hong Kong Jockey Club: Lottery Operations 8.2.5 Hong Kong Jockey Club: Financial Results 8.3 Beijing Lottery Industries Corporation 8.3.1 Beijing Lottery Industries Corporation: Company Details 8.3.2 Beijing Lottery Industries Corporation: Company Background 8.4 Beijing Zhongcai Printing Company Ltd 8.4.1 Beijing Zhongcai Printing Company: Company Details 8.4.2 Beijing Zhongcai Printing Company: Company Background 8.5 Beijing Municipal Distribution Centre of Social Welfare Lottery Tickets 8.6 Chengdu Lottery 8.7 China Sports Lottery Administration 8.8 China Welfare Lottery Issuing Centre 8.9 Guangzhou Lottery 8.10 Macau Jockey Club Company Limited 8.11 Ourgame.com 8.12 Shanghai Fengcai/Shanghai Welfare Lottery 8.13 Shanghai Welfare Lottery Ticket Distribution Centre 9 Contacts 9.1 Hong Kong Lotteries Board 9.2 The Home Affairs Bureau HK 9.3 Ministry of Civil Affairs 9.4 Ministry of Finance 10 Relevant Trade Fairs & Exhibitions 10.1 Dalian International Game Machines Show of China 10.2 International Game Machine Exhibition 10.3 China International Amusement Machines, Park Facilities & Components Exhibition Appendix - Market Background A.1 Fast Facts A.2 Exchange Rates A.2.1 Exchange Rates: China A.2.2 Exchange Rates: Hong Kong A.3 Regions of China A.4 Demographics A.4.1 Demographics: Total Population A.4.2 Demographics: Population by Location A.4.3 Demographics: Population Breakdown by Location A.4.4 Demographics: Population by Province A.4.5 Demographics: Population Density by Province A.4.6 Demographics: Population Concentration A.4.7 Demographics: Population by Gender A.4.8 Demographics: Population by Age Group A.4.9 Demographics: Population by Age Group A.5 Consumer Wealth A.5.1 Consumer Wealth: GDP and Cost of Living A.5.2 Consumer Wealth: Provincial Differences in GDP A.5.3 Consumer Wealth: GDP Growth by Province A.5.4 Consumer Wealth: GDP Per Capita by Province A.5.5 Consumer Wealth: Concentration of Wealth by Province A.5.6 Consumer Wealth: The Major Cities A.5.7 Consumer Wealth: The Significance of China’s Accession to WTO A.6 Households A.6.1 Households: Overview of Household Conditions A.6.2 Households: Total Households by Size A.6.3 Households: Total households by Urban/Rural Divide A.6.4 Households: Income Earners Per Household A.7 Employment A.7.1 Employment: Number of Workers by Sector A.7.2 Employment: Growth by Sector A.7.3 Employment: Number of Workers by Gender A.7.3 Employment: Number of Workers by Habitation A.7.4 Employment: Urban Unemployment A.8 Consumer Income A.8.1 Consumer Income: Average Incomes by Sector A.8.2 Consumer Income: Growth by Sector A.8.3 Consumer Income: Average Incomes by Region A.8.4 Consumer Income: Growth by Region A.9 Consumer Market A.9.1 Consumer Market: Consumer Spending Trends A.9.2 Consumer Market: Per Capita Consumer Expenditure A.9.3 Consumer Market: Retail Sales and Consumer Spending A.9.4 Consumer Market: Urban Income and Spending Compared A.9.5 Consumer Market: Average Urban Weekly Shopping Basket A.9.6 Consumer Market: Average Rural Weekly Shopping Basket A.9.7 Consumer Market: Average Urban & Rural Weekly Shopping Baskets Compared A.10 Consumer Trends A.10.1 Consumer Trends: Consumer Response to Political Change A.10.2 Consumer Trends: Consumer Response to Economic Change A.10.3 Consumer Trends: Changes in Lifestyle Expectation

Summary:

Gambling in China is effectively a national pastime. Despite the fact that few lotteries exist and virtually no other legalised gambling is permitted there are indications that the market will grow and flourish. Indeed, lotteries, in the form of what is now called Keno, was first played in China 3,000 years ago to fund the building of the Great Wall. The first recorded lottery in Chinese history dates back to the Tang Dynasty and lotteries continued to occur sporadically until 1886 when the Chinese government decided that lotteries where a similar to robbery and prostitution and banned them. However, gambling continued throughout the country on a small scale and casinos flourished in the Treaty Ports and the International Settlement of Shanghai. The success of Macau in attracting large numbers of Mainland Chinese to its casinos is one piece of evidence of the potential market. Chinese are also visiting casinos throughout Southeast Asia (destinations such as Thailand and Burma) and on trips to Europe and the USA. Secondly, the incredible uptake of investing in stocks and shares is another indicator. Most analysts now consider that the Chinese general public’s adoption of share dealing is effectively a form of legalised gambling. Additionally, the government can see the potential revenue windfalls from additional organised gambling in terms of licensing operators and collecting tax revenues from ticket sales for various social and sporting causes. Furthermore, in a largely cash orientated market it is an ideal form of parting consumers from their cash and allow for greater circulation of cash in the economy. Finally, the government’s future strategy for lotteries and organised gambling in China remains unclear. However, there have been intimations from Beijing that it is considering liberalising the market somewhat to permit additional lotteries as well as the possibility of horse racing and casinos. The administration of lotteries has been officially handed over to the State Ministry of Finance and the State Council has called for greater efforts to develop lotteries.