Lotteries have become hugely popular in China, where many forms of gambling are banned, helping to raise billions of dollars for public welfare and education projects.

But lottery-related crimes have also been on the rise and underground schemes have become rampant across the country in recent years, bankrupting many families.

Earlier this month, a lottery ticket seller was sentenced to life in prison for taking advantage of a system flaw to illegally cash in 28 million yuan (US$3.8 million) in winning tickets.

“Lack of laws and regulations on lottery supervision has become a significant factor that has impeded the sound development of the industry,” Xinhua quoted Ding Feng, deputy head of the Legislative Affairs Office of the State Council, or cabinet, as saying.

Last week, an unidentified buyer from the poor northwestern province of Gansu won the country’s largest ever individual lottery prize — the equivalent of US$14 million.

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