Best Online Casino & Sports Betting for China
The Chinese lottery is one of the few legal gambling activities in China, operating under the strictest government control in the world.
While most gambling activities are forbidden under the law, state-run lotteries are permitted and widely played by millions of Chinese people each year. From modest lottery stub purchases to million-yuan jackpots, the lottery remains a popular way for players hoping to get rich big while contributing to public projects.
Unlike private markets or casino sites, the lottery in China is managed by the government and supervised by the Ministry of Finance. This centralized system ensures that lottery ticket earnings, money distribution, and revenue allocation follow national regulations.
This article will tell you everything you need to know about the country’s raffle system.
Does China Have a Lottery? Understanding the Legal Framework in Mainland China
Yes, China does have a lottery, and it is fully legal to play when operated through approved government channels. The lottery was introduced in the late 1980s as a way to raise proceeds without expanding traditional taxation. Today, only two are permitted: the China Welfare Lottery and the Sports Lottery.
All other gambling activities—including casinos and most gaming sites—are forbidden in China, making its regulations on the sector the strictest in the world. Authorities frequently crack down on unlawful platforms, particularly those operating online or targeting locals from overseas.
Operations are tightly regulated by the Ministry, and proceeds generated from lottery ticket sales are split between prize money, administrative costs, and public work supporting social welfare, sports development, and community projects.
Welfare Lottery: How the China Welfare Lottery Works
The welfare lottery is the oldest and most recognized lottery system in China. Officially launched in 1987, Welfare Lottery sales were designed to raise proceeds for social programs such as healthcare, disaster relief, elder care, and education.
When players buy lottery tickets, roughly half of the total sales are allocated to prizes, while the rest goes toward welfare and government income. This structure allows players to participate in betting legally while contributing to public projects.
Popular welfare lottery games that locals can play include number-draw formats where players select five numbers or more, wait for the official results, and hope their numbers match those picked. Jackpots can reach several million yuan, with winners sometimes becoming instant millionaires overnight.
Lottery Tickets in China: Sports Lottery and Other Legal Forms
In addition to the welfare lottery, China operates a government-approved sports lottery, introduced in the 1990s. While technically classified as a lottery, it functions similarly to sportsbooks, allowing players to wager on match outcomes and scores.
Players can buy lottery tickets at licensed retail outlets across cities like Shanghai, Beijing, and other major urban centers. Players may also purchase through approved digital platforms operated by state entities, although playing on unlicensed sites operated elsewhere in the world remains unlawful.
How Do You Play the Lottery in China?
To play the lottery in China, players must purchase tickets through authorized retailers or official platforms. Once a ticket is purchased, players select numbers or accept randomly generated ones, depending on the game. After the scheduled draw—often held weekly or several times per week—results are announced publicly.
Special promotions often take place throughout the year, including peak periods in June and August, when stubs tend to sell more due to holidays and public events.
If a stub matches the winning combination, players can claim their prizes through official channels. Smaller yuans are paid immediately at retail outlets, while large jackpots require identity verification and payment through designated offices.
What Are the Lucky Numbers in the Lottery in China?
Lucky numbers play a major role in how gamblers choose their tickets. The number 8 is widely considered lucky because it symbolizes wealth and prosperity, while 6 represents smooth progress. Numbers like 4 are often avoided due to cultural associations with bad luck.
Many players play numbers based on personal meanings, birthdays, or traditional beliefs, believing that these lucky combinations will improve their chances of winning the jackpot.
Can a Foreigner Win the Lottery in China?
Yes, a foreigner can legally win the lottery in China, provided the ticket was purchased legally in the country. There is no rule prohibiting foreigners from buying tickets or claiming yuans.
However, foreign winners must comply with regulations, including identity verification and tax obligations. Any yuan won is subject to China’s tax schemes, and payouts are handled through official channels.
What Happens If a Foreigner Wins the Lotto?
If a foreigner wins, the process is similar to that of citizens. The winner must present valid identification and proof of purchase. Taxes are deducted before payout, and funds are typically transferred through authorized banking systems.
Large yuans may require additional documentation, especially when they are transferred internationally.
How much tax is paid on a large lottery win?
Lottery payouts are subject to a flat tax rate of approximately 20% on winnings above a certain threshold. Whether the payout is one million yuan or closer to a billion dollars in equivalent value, taxes are deducted before the yuan is released.
Online Lottery and Illegal Gambling Risks in China
While interest in online platforms continues to grow, most casino sites targeting locals are not allowed. The government frequently warns against using unlicensed online lottery services, as they can result in fraud.
Only government-approved platforms are permitted, and players should avoid offshore sites, even if they advertise large payouts in dollars rather than yuan.
Final Thoughts
The Chinese lottery remains one of the few lawful ways to gamble in China, offering players the chance to win a significant yuan while contributing to public welfare and sports funding. From welfare lottery to sports lottery, the system is deeply embedded in Chinese society and tightly controlled.
It’s important to treat the lottery as entertainment rather than a financial strategy. Although headlines often highlight massive payouts in dollars, most payouts in yuan are modest and should be viewed as entertainment rather than a guaranteed way to get rich.
With low odds, strict regulations, and limited legal options, responsible participation is essential. Whether you’re a local resident or a foreign visitor, understanding how the system works helps ensure a safe and enjoyable experience.
Frequently Asked Questions
How much is a million yuan lottery win worth in China?
Winning a million yuan in the lottery in China is considered a significant prize, especially given the country’s average income levels. After taxes are deducted from the million yuan, the remaining amount (more than half) can still provide long-term financial security if managed carefully.
While it may not create instant generational wealth like larger jackpots, a million yuan win, which equals hundreds of thousands of dollars, can cover housing costs, investments, or business opportunities, which is why many lottery players view it as a life-changing amount rather than just a short-term windfall.
How much tax on a $1 billion lottery win?
A $1 billion lottery win is typically discussed in dollars, but in China, payouts are issued in yuan and taxed differently under local law.
Is it true that most lottery winners go broke?
The idea that 70 percent of lottery winners go broke is often repeated worldwide, including in China. While there is no official Chinese study confirming this exact figure, financial experts agree that sudden riches can be difficult to manage.
Many winners lack experience handling large sums of money and sudden riches, leading to poor financial decisions, excessive spending, or pressure from family and friends. Chinese authorities and media often encourage winners to seek financial advice after large yuans.
