Notice of the Ministry of Finance on strengthening the management of lottery issuance and sales and promoting the healthy development of lottery market

September 29, 2007 Caizong [2007] No.55

China Welfare Lottery Issuance Management Center, Sports Lottery Management Center of the State Sports General Administration, and Finance Departments (bureaus) of all provinces, autonomous regions and municipalities directly under the Central Government:
　　In recent years, with the joint efforts of finance and civil affairs at all levels, sports departments and lottery agencies, the lottery market has developed steadily and rapidly, and the scale of lottery sales has steadily expanded, which has promoted the development of social welfare, public sports and other social welfare undertakings. However, there are still some problems in the current lottery issuance and sales, mainly because some lottery institutions or units use the Internet, telephone purchasing and other means to sell lottery tickets without approval, some lottery sales outlets are not standardized, and there are irrational bets by lottery buyers in some places. In order to further strengthen the management of lottery issuance and sales, and promote the safe operation and stable and healthy development of the lottery market, relevant issues are hereby notified as follows:
　　First, conscientiously implement the provisions of the national lottery management system, and effectively strengthen the management of lottery issuance and sales.
　　China Welfare Lottery and China Sports Lottery are national lottery tickets approved by the State Council. Finance, civil affairs and sports departments at all levels, especially lottery institutions at all levels, should fully understand the significance and role of national lottery issuance under the new situation, always put social responsibility in the first place, conscientiously implement the provisions of the national lottery management system, and ensure the smooth progress of lottery issuance and sales. All kinds of lottery game rules and distribution and sales methods must be reported to the Ministry of Finance for examination and approval by lottery issuers according to the prescribed procedures. Without the approval of the Ministry of Finance, no lottery ticket may be listed, issued and sold. For any organization or individual outside the lottery institution to issue lottery tickets without approval or in disguised form, or to sell lottery tickets by means of the Internet, local financial departments should strengthen cooperation with public security, telecommunications, civil affairs, sports, industry and commerce departments, intensify investigation and punishment, and resolutely ban them. The behavior of lottery agencies to sell lottery tickets by means of Internet and telephone purchasing shall be regulated by the Ministry of Finance in consultation with public security, civil affairs, sports and other departments to study and formulate specific management measures. China Welfare Lottery Issuance Management Center and Sports Lottery Management Center of the State Sports General Administration should organize a special inspection as soon as possible before the end of November 2007, and put forward handling opinions and report them to the Ministry of Finance according to the inspection.
　　Two, strengthen the sales management of all kinds of lottery games, from the source to prevent the risk of lottery sales.
　　Lottery agencies at all levels should standardize the management of all kinds of lottery games in accordance with the provisions of the national lottery management system, and at the same time, they should focus on strengthening the sales management of fixed return lottery games, online instant lottery games and fast lottery games. For fixed prize-returning lottery games, we should strictly control the entry of suspicious funds into the lottery market and the large amount of bets made by lottery buyers by limiting the number and number of bets. For online instant lottery tickets, we should focus on standardized management, strictly examine and approve the sales hall, standardize the construction and operation behavior of the sales hall, control the scale of game participants, strengthen the monitoring of sales, and ensure the safe sales and healthy development of online instant lottery tickets. For fast lottery games with a lottery period of less than one hour, we should ensure the safety of sales data and lottery equipment and prevent financial risks. China Welfare Lottery Issuance Management Center and Sports Lottery Management Center of the State Sports General Administration shall, according to the sales situation of various lottery games in this system, formulate specific management measures respectively and report them to the Ministry of Finance for the record and implementation before the end of November 2007.
　　Three, strengthen the management of lottery outlets, standardize the sales behavior of sales outlets.
　　Lottery agencies around the country should implement quota sales management for lottery sales outlets according to the sales situation of various lottery tickets. If the sales amount of lottery sales outlets exceeds the sales quota, it must be reported to the lottery agency in a timely manner. After the lottery agency verifies that there is no suspicious situation, the sales quota can be appropriately adjusted, and a reference system for adjustment can be established. The specific management measures shall be formulated by local lottery institutions and reported to the finance department at the same level and the lottery issuing institution at the next higher level for the record before implementation. Lottery sales outlets shall, in accordance with the unified requirements of lottery institutions, post the propaganda language of the national lottery issuance purpose, the warning language of "prohibiting minors from buying lottery tickets" and the warning language of rational lottery purchase in a conspicuous position, and shall not arbitrarily post, sell and distribute advertisements, newspapers and publications related to lottery tickets beyond the unified requirements of lottery institutions, and shall not use the Internet and other sales methods to sell national lottery tickets, or sell any lottery-related products and services other than national lottery tickets, such as special code recommendation and shrinking service. Anyone who finds the above violations in the lottery sales outlets must be dealt with severely according to the regulations to effectively maintain the normal order of the lottery market.
　　Four, adhere to the correct propaganda and public opinion orientation, and maintain the image and reputation of the national lottery.
　　Financial departments and lottery agencies at all levels should adhere to the correct direction of lottery propaganda, publicize that the purpose of issuing lottery tickets is to raise funds to develop social welfare undertakings and promote social civilization and progress, publicize the national lottery management system and lottery fund allocation policy, publicize the examples and effects of lottery public welfare funds supporting various social welfare undertakings and solving people’s practical difficulties, and publicize the healthy lottery consumption concept of "many people buy less and buy lottery rationally". Lottery agencies at all levels to carry out lottery promotion activities and major publicity activities, should be reported to the finance department at the same level for approval and implementation. The promotion and publicity activities of various lottery games should focus on the objective explanation and explanation of the game characteristics, distribution methods, sales and winning prizes, and should not be misleading, exaggerating and confusing, investment and wealth propaganda, and exclusive and defamatory propaganda against peers. Lottery agencies at all levels should arrange special personnel to closely follow and pay attention to the propaganda trends of various media, keep a high degree of vigilance against activities such as paid number recommendation and winning prediction through various media, and expose the situation that any organization or individual outside the lottery agency embezzles the name of the lottery agency to make false propaganda and deceive lottery buyers in a timely manner through various channels; If a crime is involved, it should be reported to the public security organ.
　　Five, establish and improve the reporting system of major issues in the lottery market, strengthen the daily supervision and management of lottery sales.
　　Lottery agencies at all levels should further improve the weekly, monthly and annual report system of lottery issuance and sales and fund collection in accordance with the relevant provisions of the Interim Provisions on the Management of Lottery Issuance and Sales (Caizong [2002] No.13), and establish a reporting system and emergency handling mechanism for abnormal lottery issuance and sales. Provincial lottery institutions shall report to the financial department at the same level and the central lottery institutions in a timely manner in case of major events and emergencies; After receiving the report, local financial departments and central lottery institutions should actively take measures to guide and urge provincial lottery institutions to actively and steadily handle major issues and emergencies, and report the relevant situation to the Ministry of Finance in a timely manner. Financial departments at all levels should strengthen the organization, coordination and daily supervision and management of lottery issuance and sales management, fund and financial management, safety technology management, publicity and promotion by establishing regular and irregular deliberation mechanisms with lottery institutions, in-depth investigation and inspection of lottery sales outlets, etc.
　　Six, strengthen the lottery market supervision mechanism, increase the crackdown on illegal lottery.
　　Local financial departments should pay close attention to the dynamics of the lottery market, track and analyze the new situations and new problems in lottery issuance and sales, study and put forward countermeasures in time, and enrich personnel in time according to the development needs of the local lottery market, strengthen supervision power, gradually explore the establishment of supervision mechanisms before, during and after the event, continuously improve the technical ability and professional level of supervision, and improve supervision efficiency. We should gradually explore the establishment of a comprehensive, objective and fair lottery publicity channel and the corresponding lottery publicity and supervision system, strengthen the supervision of lottery publicity, grasp the guidance of lottery publicity, and prevent illegal publicity materials and fraudulent information from misleading the masses and affecting social stability. It is necessary to study and establish a long-term mechanism to crack down on illegal lottery in conjunction with public security, industry and commerce, civil affairs, sports and other departments, and carry out targeted special crackdowns in accordance with the principle of combining unblocking with comprehensive management to create a good external environment for the healthy development of the lottery market. Financial departments at all levels can, in light of local conditions, arrange certain funds from the lottery issuance fees, establish special funds for cracking down on illegal lottery activities, set up rewards for reporting illegal lottery activities, and ensure the effectiveness of cracking down on illegal lottery activities.

　　CC: Ministry of Civil Affairs, State Sports General Administration.