BEIJING - On one domestic website alone, gamblers placed 175 billion yuan in bets in 2009, said Wang Xuehong, executive director of the China center for lottery studies at Peking University.

Ministry of Public Security officials say gambling on sport hits a peak during major international events, such as the soccer World Cup, which opened in South Africa on Friday.

With this in mind, police have recently raided several illegal websites and arrested organizers across the country, including in Beijing. The turnovers of most websites exceeded 100 million yuan.

Moreover, much of the money made by such underground operations is flowing overseas, said Wang.

Among the dozens of gambling rings dismantled in East China's Zhejiang province, 60 percent were controlled by organizations abroad, China National Radio reported.

Wang, however, believes police operations should serve only as "complementary means", while "the key to address the problem requires regulators and operators to think about how to further open up and develop our lottery industry".

"Illegal gambling websites are cashing in on the demand for better lottery products," she said. "You can't really kill or contain the public's demand for gambling it's an aspect of human nature, just like eating."

The number of illegal websites has grown because Chinese lottery products are not diverse enough, therefore are not exciting or entertaining enough to attract gamblers, argued Wang.

"The cost of committing the crime of gambling is low," she said. "Gamblers get three years in prison at most and police wouldn't be able to arrest too many people."

Wang is urging operators to develop a "complete and clear understanding" on what a lottery really is.

"Only when we had pushed lotteries as entertaining, fun and exciting will the problem be solved," she said.

Regions like Hong Kong have legalized soccer gambling, and the illegal market is pushing the policy agenda on the mainland to the same situation, said Wang.

If the lottery business opens up further, "consumers would have suitable products to purchase, the State can administer wager channels and tax revenue, and funds for welfare projects would be increased", she said. "It can also give auxiliary industries a push and consolidate social stability."

Although she warned that some people could become addicted to gambling, Wang added: "We could reinforce risk control at the policy level, enhance addiction prevention schemes and give more protection or help to consumers."

CHINA DAILY