| Based on the introduction of theories and methodology in lottery studies of foreign courtiers and status quo of Chinese lottery industry, this paper makes essential arrangements and improvements in above mentioned fields. The author analyses data in lottery sales, the number and the value of the award, and per capita sales of each lottery in different areas in China. These data were contributed by dozens kinds of lotteries, in types of Lotto Lottery, Number Lottery and Toto (Soccer) Lottery issued in Beijing, Shanghai and the whole nation in the period from April, 2001 to August 2005. Four problems, in particular, are being studied. (1) The determinant factors in sales of different types and kinds of lotteries. (2) The psychology and people's habit of choosing the number(s) of the lotteries. (3) The relationship between the average per capita sales of lotteries and income. (4) The strategies in combating the illegal lottery.Based on the research in these problems, several conclusions can be given as follows.First, that the subject probability in winning an award is larger than the objective one can be considered as the main reason of people buying lottery. And winning the big award is the principal purpose for the lottery player. The main determinant factor in the sale of the Lotto Lottery is the "Expected Return". Chasing the "Infrequent Number"(not appeared as award numbers for a long time) is the main reason that the sales of Number Lottery fluctuate; for the Toto Lottery, people incline to bet on the drastic matches.Second, "illusions of control" exists, while people choose the numbers of lottery, and this is still more for the Number Lottery. Thus, the sales of this type of lottery cannot and should not keep in bulk for a long time. People often spend much more in "predicting" the awarding numbers, and are highly loyal to certain kinds of lottery. Although both "Ministry of Civil Affairs" and "General Administration of Sports" issued lotteries with similar playing rules, not significant competitions can be founded between the two.Third, the majority of lottery players are citizens with middle and low income. With the increase of income, people will have more channels of investment and means of amusement and the per capita sales of lottery will decline. That is to say, the income effect of lottery is negative. It is not a long period since China introducedlottery in, so the lottery market in China has not been saturated yet and generates a promising future. By means of the induction of this paper, we venture to predict that the sale of lottery in China will amount to 100 billion RMB in 2009.Fourth, Illegal Lottery is the consequence of the social transformation and people's aspiring to sudden wealth. Its overflowing is directly related to the mismanagement of the government organs. Fighting the Illegal Lottery should mainly depend on education and propaganda. Increasing "healthy amusement" and "steady investment" as the substitution is the core approaches to eradicate it.On the basis of research, some suggestions concerning the future development in China's lottery industry can be put forward. We believe that maximizing the sales or the funds from it should not be the only purpose of issuing lottery. Coordinating roles between "Welfare Lottery" and "Sports Lottery" should be needed to enlarge the market of lottery in China rather than to compete with each other. Governing authorities should accelerate their steps on promulgating "Law of Lottery" to perfect the issuing system and operation model of lottery. Also, in order to raise the competitiveness of China's lottery industry, it cannot be ignored that the types and kinds of lotteries should be increased, the spending of the funds from lottery should be monitored and the function of mass media should be paid attentions to.
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