The lottery market of China experienced fluctuating steps in the month of November. The welfare lottery sector is largely to blame for this unsteady movement.
China’s Ministry of Finance released the data on Thursday which showed that the nation made lottery sales of RMB 36 billion (US $5.5 billion) in November. This is a 17.2 percent increase from the total in October but a 4.6 percent fall when compared to the same period last year.
This shows that the industry has a long way to go to get rid of the negative trends that bedevilled the market in 2020.
The sports lottery sales for November were flat year-on-year, decreasing only 0.2 percent to RMB 21billion. However, that was RMB 2.6 billion better than the tally for October. The welfare lottery sales of November fell by 10.1 percent year-on-year to RMB 15 billion. Though this increased from the RMB12.3 billion of October.
For the year-to-date, total lottery sales reduced by 22 percent to RMB297.4 billion, with sports falling by 19.4 percent to RMB168.2 billion and welfare decreasing 25 percent to RMB129.2 billion. While total sales got a positive growth in about 14 provinces in November. The sales across the first eleven months of 2020 decreased in 29 Chinese provinces.
Consequently, November was the first month in which Chinese provincial lottery administration centers were mandated to limit sales of ‘quick-opening’ (welfare) lottery products and ‘high-frequency’ (sports) to a one quick-draw product.
These changes are meant to reduce excessive playing of lottery games, and it hopes to get rid of all products like this by the end of the 2021 Spring Festival holiday which is scheduled to hold by February 17.
That’s not all, the Ministry of Finance disclosed at the start of the month that the yearly lottery suspension of sales in the course of the Festival will begin officially at midnight on the 9th of February. The suspension will continue through midnight and will come to an end on the 18th of the month. The only lottery products allowed to be sold while this festivity is going on is instant tickets.
In other news, AGTech Holdings Ltd, a Hong Kong-listed lottery tech outfit stated this past week that it had won procurement tenders to supply sports terminals to lottery administrators in Guizhou, Hubei and Shaanxi provinces.
Because AGTech is the major supplier of these above-mentioned ‘high-frequency’ sports lottery products – Lucky Racing Formula 1and e-Ball virtual football – news of a fresh income stream will be good news to the shareholders of AGTech.