Lottery is  authorized and issued by the state, and sold to and purchased by players  voluntarily, for the purpose of raising public welfare funds for society and  facilitating the development of social community initiatives, with the lottery  ticket as a proof to winning under certain regulations. Lottery does not return  the principal to players or bear interest. The issuance, sales and drawing of  lottery should follow the principles of Open, Fair, Just, Honest and Credible. 
    
The State Council  authorizes the issuance of Welfare and Sports lottery. No other lottery can be  issued without the authorization of the State Council. No foreign lottery can  be issued and sold within the People¡¯s Republic of China.
The Ministry of  Finance of the State Council is responsible for the supervision and  administration of the lotteries nationwide. The Ministry of Civil Affairs and  the State General Administration of Sport  of the State  Council are responsible for the administration of welfare and sports lotteries  nationwide respectively.
The  Ministry of Civil Affairs and State General Administration of Sports of the State Council establish a welfare lottery issuance organization  (China Welfare Lottery Issuance and Administration Centre*) and a  sports lottery issuance organization (China Sports Lottery Administration  Centre*), to be responsible for the issuance and sales of welfare  and sports lotteries nationwide respectively.
  
  

Source: "The Lottery Law" effective from 1 July  2009 
*:CLS note 
  
