 "Unusual crisis in China: Lottery ticket shortage leaves people scrambling")
Amid intensifying economic concerns in China, citizens are facing an unusual issue: A shortage of lottery tickets. The South China Morning Post (SCMP) reported that dedicated lottery ticket stores are running out of stock, making it difficult for people to indulge in their favourite pastime and a potential quick route to wealth.
In China, gambling is generally prohibited, except for the China Sports Lottery and the China Welfare Lottery, which include traditional lotteries with number selection and scratch cards. The gua gua le instant lottery, in particular, is popular among young people as a perceived shortcut to financial gain.
“When the economy slows down, the lottery may move forward,” Su Guojing, founder of the China Lottery Industry Salon, a non-governmental trade organisation, was quoted as saying in an interview with state broadcaster CCTV.
Lottery ticket size in China
Lottery ticket sales in China reached over 149.5 billion yuan ($20.6 billion) in the first quarter of FY25, a 19.7 per cent increase year-on-year, according to the Ministry of Finance. Gua gua le sales accounted for 26.1 per cent of the total, marking an 81.4 per cent increase from the previous year.
For comparison, the national general budget revenue in the first quarter was 6.1 trillion yuan, a 2.3 per cent decline year-on-year.
As of 2022, lottery proceeds, including income from gua gua le, have been equally divided between central and local governments, according to SCMP.
China’s lottery popularity
The past decade has seen significant growth in China’s lottery industry. Last year, the number of lottery-related companies increased by 4,512, the highest growth rate in ten years, according to CCTV, citing data from Chinese company information provider Tianyancha. In the first four months of 2024, 2,105 lottery-related companies registered in China, a 158.92 per cent year-on-year increase.
More From This Section
China now has a total of 14,700 lottery-related companies across the supply chain, from printers to distributors and retailers, as reported by CCTV in May. However, some lottery retailers are experiencing revenue declines and operational challenges due to gua gua le ticket shortages, according to social media accounts this month.
Lottery tickets have grown in popularity among young people, often used as gifts and featured on social media, with influencers sharing images of large prizes. In March, a post on Weibo by Sina.com claimed workers were using lottery tickets to clock in, garnering 53.5 million views.
China’s financial woes
China is currently struggling with an uneven economic recovery post-pandemic, characterised by cautious consumer spending, a property crisis, and high youth unemployment.
According to official data released on Monday, China’s fiscal revenue decreased by 2.8 per cent in the first five months of 2024 compared to the same period the previous year. This decline has accelerated slightly from the 2.7 per cent drop recorded between January and April, highlighting the ongoing challenges posed by weak demand on the country’s economic recovery.
Meanwhile, fiscal expenditure increased by 3.4 per cent during the same five-month period, following a 3.5 per cent rise observed in the first four months, as reported by the Ministry of Finance.