Online lottery in China: Key market research findings
- Relaxation of government regulations drives market growth
- Vendors in the market are focusing on public image enhancement
- Key vendors – Lottery 365, Taobao Lottery, QQ Lottery, and NetEase
Technavio’s market research analysts predict the online lottery market in China to grow at a CAGR of around 5% between 2016 and 2020. The growth of the market can be accredited to the relaxation of government regulations. Although online lottery is banned and stringent regulations have been imposed during the pilot run, it is one of the major sources of revenue for the government. Some of the major benefits of easing regulations on sports lottery include a higher tax on vendors to generate revenue and contribution toward societal welfare. Legalizing of lottery further creates job opportunities in the country.
The new market research report from Technavio presents a breakdown and analysis of the online lottery segments based on the device.
“Vendors in the market are currently focusing on public image enhancement. To overcome this challenge, the government is trying to regulate and manage the market such that it ensures the legitimacy of the vendor and equality among the participants. This would help in reassuring the players and allow them to engage in online lotteries with confidence. Besides, the revenue generated is used for the public cause, which will further enhance the image of the market,” says Ujjwal P. Doshi, Lead Analyst, Media & Entertainment, Technavio Research.
During 2015, the mobile segment accounted for 58% of the overall market share to become the key revenue generating segment in the online lottery market in China. The growth of this segment is fueled by the increasing penetration of smartphones in China. It also helps the vendors to target their audience effectively with their preferred choice of lottery games
The key vendors in the online lottery market in China include Lottery 365, Taobao Lottery, QQ Lottery, and NetEase. The market is highly competitive and fragmented due to the presence of numerous well-established vendors. Vendors in the market have to face significant challenges stemming from intense competition, rapid technological advances, and frequent changes in consumer preferences. Several lottery agencies are currently investing in rebuilding and expanding existing services, acquiring new players in the market, increasing their customer base, and increasing market shares.
A more detailed analysis is available in the Technavio report, Online Lottery Market in China 2016-2020.
We can customize reports by other regions and specific segments upon request.
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