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Is Gambling Legal in China?

Prohibited
All forms of gambling are illegal in Mainland China except state-run lotteries; strict penalties apply for violations.
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    Key Information Highlights Legislation Timeline Requirements Sources

    Key Information

    Last Update 2025
    Regulatory Authority Ministry of Public Security
    License Cost Varies

    Regulation by Activity Type

    Casinos Prohibited
    Online Casinos Prohibited
    Betting Prohibited
    Online Betting Prohibited
    Lotteries Prohibited
    Poker Prohibited

    Highlights

    • All forms of gambling are illegal in mainland China, except for two state-run lotteries.
    • The Welfare Lottery and Sports Lottery are government-operated and not classified as gambling under Chinese law.
    • Operating or participating in unauthorized gambling, including online gambling, is a criminal offense punishable by fines or imprisonment.
    • There is no licensing framework for private gambling operators in mainland China; only state lotteries are permitted.
    • Online gambling, including poker apps and offshore betting, is strictly banned and actively suppressed by authorities.
    • Severe penalties apply to those running illegal gambling establishments, with harsher sentences for organizers.
    • Macao and Hong Kong are exceptions, each with their own regulated gambling industries and legal frameworks.
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      Legislation

      Primary Legislation

      The legal framework governing gambling in China is defined by strict national laws that broadly prohibit most forms of gambling. The core legislation includes:
      • Criminal Law of the People’s Republic of China (PRC): This is the principal statute addressing gambling activities. It explicitly prohibits both professional and recreational gambling, as well as the operation of gambling establishments. Violations can result in fines and imprisonment. The law also extends to online gambling, making it illegal to participate in or operate online gambling services within mainland China.
      • State Lottery Regulations: The only exceptions to the general prohibition are the two state-run lotteries, the Welfare Lottery (established in 1987) and the Sports Lottery (established in 1994). These lotteries are not legally classified as gambling under Chinese law and are permitted as fundraising mechanisms for social welfare and sports development.
      No other forms of gambling, including casinos, betting shops, or private gaming, are permitted under the current legislative framework in mainland China. The prohibition also covers online and overseas gambling activities targeting Chinese citizens.

      Regulatory Authority

      Oversight and enforcement of gambling laws in China are managed by several government bodies, each with specific responsibilities:
      • Ministry of Public Security: Responsible for investigating and prosecuting illegal gambling activities, including both land-based and online operations.
      • Ministry of Civil Affairs: Supervises and regulates the Welfare Lottery, ensuring compliance with national policies and the appropriate allocation of lottery funds.
      • General Administration of Sport of China: Oversees the Sports Lottery, managing its operation and ensuring that proceeds are used for sports-related initiatives.
      These authorities coordinate enforcement actions, regulatory oversight, and policy implementation to maintain the prohibition on unauthorized gambling and to supervise the operation of the permitted state lotteries.

      License Types

      Mainland China: Gambling Licensing System Overview

      In mainland China, almost all forms of gambling are strictly prohibited. The only exceptions are two state-run lotteries: the Welfare Lottery and the Sports Lottery. No private, commercial, or foreign operators are eligible to apply for gambling licenses for casinos, sports betting (beyond the state lottery), online gambling, or any other form of wagering. The government does not issue or recognize any gambling licenses for private operators in mainland China.

      Types of Licenses Available

      • Welfare Lottery License: Operated exclusively by the China Welfare Lottery Issuance and Administration Center, under the Ministry of Civil Affairs.
      • Sports Lottery License: Operated exclusively by the China Sports Lottery Administration Center, under the General Administration of Sport.
      No other types of gambling licenses are available. All other forms of gambling, including online gambling, casinos, poker, and private betting, are illegal and unlicensed.

      Application Process

      • The lottery operations are state monopolies. Only government-run entities are eligible to operate or administer the Welfare and Sports Lotteries.
      • There is no public or commercial application process for gambling licenses in mainland China.
      • Retailers (such as convenience stores) may apply to become authorized lottery ticket vendors. This process is handled at the provincial or municipal level by the relevant lottery administration center. The process typically involves submitting an application, meeting location and operational requirements, and undergoing a background check.

      Duration and Renewal Conditions

      • Lottery operator licenses are held indefinitely by the designated government agencies.
      • Retailer authorizations to sell lottery tickets may be subject to periodic review or renewal by local lottery administration authorities, based on compliance and sales performance.

      Eligibility Requirements

      • Only government agencies can hold lottery operator licenses.
      • For lottery ticket retailers:
        • Must be a legally registered business entity in China.
        • Must meet location and operational standards set by the local lottery administration center.
        • Must have a clean criminal record and no history of gambling-related offenses.

      Licensing Costs and Financial Requirements

      • There are no licensing fees for the operation of the Welfare or Sports Lotteries, as these are state-run monopolies.
      • Retailers authorized to sell lottery tickets may be required to pay a nominal application or administrative fee, the amount of which varies by locality and is typically minimal.
      • Retailers may need to provide a security deposit or guarantee to cover potential losses or liabilities.

      Key Requirements for Obtaining and Maintaining Licenses

      • For operators: Only government agencies are permitted to operate lotteries.
      • For retailers:
        • Compliance with all operational, reporting, and anti-fraud regulations set by the lottery administration center.
        • Regular submission of sales data and financial reports.
        • Cooperation with audits and inspections conducted by authorities.
        • Adherence to responsible gaming and anti-money laundering policies.

      Summary Table: Mainland China Gambling Licensing

      Activity License Type Who Can Apply Application Process Fees/Costs Duration
      Welfare Lottery State Monopoly Government Only Not open to public Not applicable Indefinite
      Sports Lottery State Monopoly Government Only Not open to public Not applicable Indefinite
      Lottery Retailer Retailer Authorization Registered Businesses Local application, background check Nominal/local fee Periodic review
      No commercial gambling licenses are available in mainland China. All forms of private or commercial gambling licensing are prohibited, and only state-operated lotteries are permitted under strict government control.

      Gambling Tax

      Taxation System for Gambling Operators in China

      • In mainland China, the only government-authorized gambling activities are the Welfare Lottery and the Sports Lottery.
      • All other forms of gambling, including casinos and online gambling, are strictly illegal and not subject to a formal tax regime, but rather criminal penalties.

      Tax Rates for Authorized Gambling Operations

      The taxation system in mainland China applies exclusively to the two state-run lottery operations. There are no legal private gambling operators, so the following tax rates pertain only to the Welfare Lottery and the Sports Lottery.
      Type of Lottery Tax Basis Tax Rate
      Welfare Lottery Gross Ticket Sales 20% Lottery Public Welfare Fund (quasi-tax)
      Sports Lottery Gross Ticket Sales 20% Lottery Public Welfare Fund (quasi-tax)
      • The 20% allocation to the Lottery Public Welfare Fund functions as a de facto tax, deducted from gross ticket sales before prize payouts and operating costs.
      • Additional standard business taxes may apply to the lottery administration entities, but these are not specific to gambling operations.

      Tax Reporting and Payment Procedures

      • State lottery operators are required to report total ticket sales, prize payouts, and allocations to the Public Welfare Fund on a regular basis, typically monthly or quarterly, to the Ministry of Finance and relevant provincial authorities.
      • Payments to the Public Welfare Fund are made directly from gross ticket sales prior to any distribution of prizes or administrative expenses.
      • Lottery operators must maintain detailed records of sales, payouts, and fund allocations for audit and compliance purposes.

      Tax Incentives, Exemptions, and Special Provisions

      • There are no tax incentives or exemptions for gambling operators in mainland China, as only state-run lotteries are permitted and their proceeds are strictly regulated.
      • All funds allocated to the Public Welfare Fund must be used for designated social welfare projects, as mandated by government policy.
      • Winnings from the state lotteries above a certain threshold are subject to a personal income tax for individual winners, but this does not affect the operator's tax obligations.

      Prohibited Individuals

      Age Restrictions and Identification Requirements

      • In mainland China, participation in the two state-run lotteries (Welfare Lottery and Sports Lottery) is restricted to adults, with the minimum legal age set at 18 years old. Strict identification checks are required to purchase lottery tickets to enforce this age restriction.
      • In the Special Administrative Region of Macau, the minimum legal gambling age is 21 years old, and casinos are required to verify age and identification before allowing entry or participation in gaming activities.
      • There are no legal land-based casinos or betting shops in mainland China, so age restrictions apply solely to the official lotteries and not to other forms of gambling, which are prohibited.

      Prohibited Types of Gambling Activities and Game Restrictions

      • All forms of gambling, including land-based casinos, sports betting (outside the state-run Sports Lottery), poker, mahjong for money, and online gambling, are strictly prohibited in mainland China.
      • Operating, organizing, or participating in unauthorized gambling activities is illegal, with severe penalties including fines and imprisonment.
      • Online gambling is completely banned, including the use of offshore or proxy betting services. The government actively blocks access to foreign gambling websites and pursues enforcement against both operators and players.
      • Social media promotion and online poker applications are forbidden; app stores must remove all poker-related applications, and the promotion of poker via any channel is not allowed.
      • Only two state-run lotteries (Welfare Lottery and Sports Lottery) are permitted, and these are not legally considered gambling by the Chinese government.

      Advertising and Marketing Limitations

      • Advertising or marketing any gambling services or products, except for the two official state lotteries, is strictly prohibited in mainland China.
      • Promotion of gambling activities—including through online channels, social media, and mobile apps—is illegal. This includes advertising for offshore gambling sites or any form of unauthorized gaming.
      • App stores and digital platforms are required to remove gambling-related content, particularly for poker and casino-style games.
      • Marketing of the state lotteries is regulated and must adhere to government guidelines, focusing on responsible participation and avoiding targeting minors or vulnerable groups.

      Responsible Gambling Requirements and Player Protection Measures

      • For the state lotteries, there are responsible gambling messages and warnings on tickets and at points of sale, advising players about the risks of excessive gambling and providing information on support resources.
      • Lottery operators are required to implement measures to prevent underage sales, including mandatory identification checks and staff training.
      • There are no formalized national programs for problem gambling treatment in mainland China, but some local initiatives and public awareness campaigns exist to address gambling addiction, particularly related to illegal gambling.
      • Authorities conduct regular enforcement operations to identify and shut down illegal gambling venues, aiming to protect citizens from the risks associated with unregulated gambling.

      Geographic or Location Restrictions for Gambling Venues

      • All forms of gambling venues—including casinos, betting shops, and gaming halls—are prohibited in mainland China. Any such establishments are considered illegal and subject to closure and criminal prosecution.
      • The only exceptions are in the Special Administrative Regions of Macau and Hong Kong, where regulated gambling is permitted under local laws. These regions are geographically and administratively separate from mainland China.
      • Within mainland China, lottery tickets can only be purchased at authorized retail outlets, which are subject to location and operational restrictions as determined by government authorities.
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        Timeline

        Year/Date Event
        1949 All forms of gambling banned in mainland China following the establishment of the People’s Republic of China under the Communist Party.
        1987 Launch of the Welfare Lottery, the first state-run lottery in China, officially permitted as a means to raise funds for social welfare projects.
        1994 Introduction of the Sports Lottery, expanding state-run lottery options for Chinese citizens.
        2006 Revision of the Criminal Law of the People’s Republic of China, reaffirming strict prohibitions on gambling and specifying penalties for illegal gambling and operating gambling establishments.
        2018 Ban on all online poker applications and related promotions in China, reflecting increased efforts to combat online gambling activities.
        2024 New regulations come into effect to further control online activities, particularly focusing on the protection of minors in gaming and gambling-related environments.

        Requirements

        Software Certification and Technical Standards

        • In mainland China, commercial gambling is strictly prohibited, with the exception of state-run lotteries. Therefore, there are no formal technical standards or software certification procedures for private gambling operators, as such operations are illegal.
        • For the two legal state lotteries (Welfare Lottery and Sports Lottery), technical systems must comply with government-mandated security, reliability, and transparency standards. These include robust random number generation, ticket validation, and secure transaction processing systems, all subject to oversight by designated government agencies.
        • All lottery software and hardware must be certified and tested by government-approved laboratories to ensure compliance with operational integrity and anti-fraud requirements.
        • Any unauthorized online gambling software, including poker or casino games, is banned and subject to immediate takedown and criminal prosecution.

        Data Protection, Privacy Measures, and Server Location Requirements

        • For state lottery operations, all player data and transaction records must be stored on servers physically located within mainland China, under the direct control of government agencies.
        • Strict data protection protocols are enforced, including encryption of personal and financial data, access controls, and regular security audits to prevent unauthorized access or data leaks.
        • Operators are required to comply with national cybersecurity laws, which mandate real-time monitoring and reporting of suspicious activities to authorities.
        • Cross-border transfer of lottery-related data is prohibited without explicit government approval.

        Anti-Money Laundering (AML) and Know Your Customer (KYC) Procedures

        • State lottery operators are required to implement comprehensive AML programs, including customer due diligence, transaction monitoring, and reporting of suspicious transactions to the People's Bank of China and public security authorities.
        • KYC procedures include mandatory identity verification for all players, requiring valid government-issued identification prior to ticket purchase or prize redemption.
        • Enhanced due diligence is required for large transactions, with thresholds set by regulatory authorities. All high-value or unusual transactions must be flagged and reported.
        • Operators must maintain records of customer identity and transaction history for a minimum period as specified by law, typically five years.

        Financial Reporting, Auditing Standards, and Record-Keeping Requirements

        • State lottery operators must submit regular financial reports to the Ministry of Finance and other designated authorities, detailing sales, payouts, and fund allocations.
        • All financial operations are subject to annual independent audits, with auditors approved by government agencies.
        • Operators are required to maintain detailed records of all transactions, including ticket sales, prize payouts, and fund transfers, for auditing and regulatory review.
        • Records must be stored securely and made available to authorities upon request, with strict penalties for non-compliance or falsification of records.

        Technical Implementation Requirements for Responsible Gambling Tools

        • State lottery systems must incorporate responsible gambling features, such as age verification mechanisms to prevent underage participation.
        • Limits on ticket purchases and prize claims may be enforced through system controls to mitigate problem gambling risks.
        • Information about responsible gambling, including helplines and support resources, must be prominently displayed on all lottery sales platforms and materials.
        • Operators are required to monitor for signs of problematic play and report concerns to relevant authorities for further action.

        Sources

        Primary Regulatory Authorities

        Legislation Resources

        Official Contacts

        • Ministry of Public Security: Tel. +86-10-66262114
        • Ministry of Finance: Tel. +86-10-68551114
        • China Welfare Lottery: Tel. +86-10-58129888
        • China Sports Lottery: Tel. +86-10-88651188
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          Important Information Notice

          Gambling regulations are subject to change. The information provided on this page was accurate at the time of publication, but may not reflect the current regulatory landscape. Always consult official sources for the most up-to-date information before making any gambling-related decisions.

          Last updated: 22 April 2025