CHINA TOPIX

11/22/2024 03:52:53 am

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China Lottery News: China’s Misused Lottery Funds Exposed

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(Photo : Reuters) In an official report by an accredited auditing team, around $3billion of China's state lottery was wasted on excessive buying of luxury cars, funds for overseas travels of officials and excessive building of offices using the said funds.

In an official report by an accredited auditing team, around $3billion of China's state lottery was wasted on excessive buying of luxury cars, funds for overseas travels of officials and excessive building of offices using the said funds.

In China, like any other country, considers betting an illegal game, unless it is run by the government itself. The auditing team exposed at least 16.9 billion Yuan was used illegally in the country, from 2012 to 2014. There have been no high profile officials linked to any of the said corruption, but proof of funds being recovered is present.

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In 1987, state lottery began operating in China, bringing at least 2 trillion Yuan of revenues. While it's main purpose is for the social welfare of its people, there has never been a clear report on where the funds were put and used during its operation.

According to Straitstimes, there are at least 17 provinces in China that sells lottery online, something that is against the law and needs to have an approval from the Ministry of Finance in China. This law has been disregarded by some and continue its illegal sales.

Because of the strict rules of gambling in China, this state-run lottery has been patronized by its citizens, even spending millions, causing the country to be the next biggest lottery country to the United States. Unlike other countries, the lottery in China has a limit cap regardless of the amount accumulated. Proceeds from this are declared to be used in sports management and the welfare of its people, but the recent fight against corruption by China's President Xi Jinping had all the allegations and investigations come out, including the misused lottery funds.

In a report by Marketwatch in January, anomalies on the said lottery draws, despite of it being televised is very obvious. In one of their 50 billion Yuan lottery prizes, an announcement of a glitch on the draws caused the people to believe that the off-air draw was actually won by a "young immigrant worker in Guangzhou city." Investigations immediately followed.

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