| This study provides an in-depth examination of the lottery market in China, including industry structure, government regulations, and lottery issuance model. It analyzes and forecasts market demand of solutions adopted in the lottery industry, analyzes business models of solution vendors, and analyzes and forecasts potential markets for IT vendors in the near future. It also includes an analysis of the competitive landscape and the profiles of key IT solution providers. Finally, I provide the conclusion about the goal markets and recommendations on how to enter the market.In this study, information from both primary and secondary sources were used to validate and cross-check information. The China Lottery IT Solution Market Survey was conducted in most of China's provinces. The objective was to provide meaningful research data and detailed insight into significant trends and opportunities within the China lottery IT solution market. Respondents were lottery operator managers, lottery vendors, and lottery buyers. Participation was voluntary and responses are anonymous. I interviewed significant respondents to determine market data and other relevant information. Most interviews were conducted in person, although other data collection methods, such as telephone interviews, were also applied. Information gathered from direct conversations with government officials and key managers of lottery operators were an invaluable complement to the broader survey-based results.There are two lottery systems in China, the welfare lottery and the sports lottery. The welfare lottery targets all kinds of consumers whereas the sports lottery targets consumers that are interested in sports. However, they both have similar games that attract all kinds of consumer. In the past few years, the welfare lottery market has been larger than that of the sports lottery, and has grown at a similar rate. China welfare lottery revenue reached US$5,113.5 million in 2005 and US$13.35 billion in 2010. In the years to come, the welfare lottery will grow with CAGR of 22.3%. Welfare lottery market growth is relies mainly on two factors: one, that lottery terminals will be widely installed in rural areas, so that lottery buyers can more easily access lottery sales outlets, thus attracting new lottery buyers; two, the average expenditure by a lottery buyer will increase with the increase of per capita income.According to this study, in 2005, IT demand reached US$48.8 million. In 2006, this was at US$58.6 million, with a 2005-2010 CAGR of 20.5%, reaching US$123.7 million in 2010.My recommends the following strategies for the future are: y Cooperate with lottery issuance centers to support the expansion of the lottery market. Expansion of the market may bring more demand for IT systems. Concentrate on computer lottery IT solutions, both on the Lotto and Keno lottery markets. These are the key areas of the future lottery market. Enter the VLT solution market. It is a new lottery type for China—it entered the market in 2005—and is forecast to see sharp growth in the next two years. Enter the VLT solution market. It is a new lottery type for China—it entered the market in 2005—and is forecast to see sharp growth in the next two years. |
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