A Look at Why Chinese Government Cracked Down on Online Lottery Sales

In the opinion of a financial service company this week, the Chinese central government's plan to tighten the reins on internet lottery sales was prompted by the failure of certain operators to register all ticket sales.

North Square Blue Oak specializes in the issues affecting Asian markets and opined that the sudden crackdown on online lotto sales was due, at least in part, to operators not registering all of their sales.

North Square notes that the odds were heavily against punters, which raised red flags for the government and prevented some operators from registering the sale of the ticket.

The company supports the suspension and review saying that it will help to reveal and eliminate dishonest operators to create fairness in the industry.

As a result of the review, operators may see increased capital requirements and provincial commission distributions.

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