Lottery Industry in the PRC

From ancient times to the present day, one of the common tools for collecting the necessary financial resources to solve socio-economic problems in various countries of the world is holding lotteries. Recently, there have even been separate publications about the fact that the lottery was used in ancient China to raise funds for the construction of the Great Wall of China. In the PRC, funds received from lotteries go to the Public Welfare Fund and are included in the state budget in accordance with the rules for managing state funds. The fund's resources are used exclusively for the development of social security and sports. Surpluses are carried over to the next year for further use and are not used to balance the general consolidated budget of the PRC. In the PRC, most of the funds (80–90%) are returned to players in the form of winnings and social assistance, ensuring the attractiveness of bets. At the same time, the efficiency of spending funds from the Public Welfare Fund and the Social Fund, which are formed through deductions from the lottery, currently raises certain questions among the country's control bodies. This article analyzes the regulatory framework for holding lotteries in China, types of lotteries, examines the institutions that control the holding and distribution of financial resources, analyzes the standards for distributing funds collected between the center and the provinces from holding lotteries, and examines the efficiency of managing funds collected from lotteries.