PACT Director and Renowned Lottery Expert Mr. Guojing Su Addresses
Social Issues and Addictive Behavior in China's Lottery Gaming
Market BEIJING, Dec 5 /PRNewswire/ -- PacificNet Inc. (OTC:PACT)
(BULLETIN BOARD: PACT) , a leading provider of e-commerce and
gaming technology in China, announced today that its director Mr.
Guojing Su, a renowned lottery industry expert in China, delivered
a speech on China's Welfare and Sports Lottery Industry at the 5th
International Conference and Forum on Gaming Industry and Public
Welfare 2008. In addition, PacificNet CEO Victor Tong, CFO Phillip
Wong, and other key executives attended the event. Mr. Su, a
well-known expert and researcher in China's lottery industry
addressed the conference and provided guidance and suggestions on
China's lottery industry development and government policy making.
Mr. Su's conference speech covered key topics including: challenges
and opportunities facing the gaming industry in China, gaming &
tourism industries and their impacts on the economic development
and public welfare in various regions in China, responsible gaming
and prevention of negative social impacts of the gaming industry,
and prevention of addictive or pathological gambling behavior, as
well as a brief discussion on China's government regulations on
lottery industry and a suggestion on the establishment of legal
system with the concept of "Harmonious Society". The 5th
International Conference and Forum on Gaming Industry and Public
Welfare was held in Beijing, China on 22-24 November 2008, jointly
organized by China Center for Lottery Studies (CCLS) at Peking
University, Macao Polytechnic Institute, Institute for Tourism
Studies, and Macao Tourism and Casino Career Center. Committed to
foster a healthy development of the gaming industry in China,
including that in Hong Kong SAR, Macao SAR, and Taiwan, this annual
conference provides a platform for communication, exchange and
debate on issues facing policy makers, operators, as well as
scholars in the industry. The organizers are particularly keen to
provoke high quality research in gaming and in the gaming industry.
Theme of this year's conference is "Global Trend of Recreation and
Gaming Industry". Conference speakers include: -- Mr. Jia Kang,
Director, Institute of Finance, Ministry of Finance -- Mr. Ding
Feng, Director, Legislative Affairs Office of the State Council
P.R. China -- Mr. Wang Zhenyao, Director, Office for Charity
Coordination and Promotion, Ministry of Civil Affairs -- Mr. Wei
Jixiang, Deputy Director, National Sports Lottery Association --
Professor Shen Mingming, Director, and Dr. Wang Xuehong, China
Centre for Lottery Studies (CCLS) Peking University -- Professor
William Eadington, Professor of Economics and Director of the
Institute for the Study of Gambling and Commercial Gaming at the
University of Nevada, Reno -- Professor David Forrest, Centre for
the Study of Gambling, University of Salford, UK -- Professor Zeng
Zhonglu, Macau Polytechnic Institute -- Mr. Guo Shiyou, Director,
Sports Lottery Centre of Henan Province, P.R. China -- Professor
Feng Jiachao, Gambling Institute of University of Macau Concurrent
to the conference, the China Gaming Expo, hosted by China Center
for Lottery Studies, is a top gaming conference and exhibition
tailor made for China market. It has gained great support from the
State Council's Ministry of Finance, Ministry of Civil
Administration, Legal Office, National Sports Lottery Association,
National Welfare Lottery Association, provincial and municipal
lottery associations, as well as other lottery associations from
home and abroad. China Gaming Expo provides an excellent chance for
contact decision-makers of lottery industry, for gripe the
development of Chinese lottery industry. In the expo the exhibitor
will show the most advanced lottery equipment. Many leading
companies such as Intralot, Gtech, G-Lot, PacificNet, Openlot and
Beijing Sport Lottery Information Promotion Ltd. all attend the
event. "As a member of the lottery technology industry, it is
PacificNet's obligation to comply with relevant rules and
regulations and actively boost the lottery industry," said Victor
Tong, PacificNet CEO. "Our Director Su's expertise and knowledge in
this area is an asset to PacificNet as well as a great addition to
the Chinese lottery industry. Compared with Western countries,
China's lottery business still lags far behind but has far greater
potentials." In 2008, China published a draft management regulation
on lotteries and is seeking public opinions. Public hearings have
been held along with expert consultation before new lottery
regulations are set up. If officially issued, it would be the
China's first national management regulation on lotteries since the
launch of China lottery industry in 1987. The new lottery
regulation is expected to issue next year. The new regulation is
aimed to enhance supervision of the fast-growing lottery industry
and stamp out fraud, which has been on the rise since China
launched its first lottery two decades ago. Currently, China has a
provisional regulation on the management of lottery distribution
and sales, which was issued by the Ministry of Finance in 2002.
According to the proposed draft of the new lottery regulation, no
individual, organization or government department could sell
lotteries without permission from the State Council. The China
Welfare Lottery Administrative Center and the Sports Lottery
Administrative Center of the China General Administration of Sport,
both state-run, are the only two legitimate lottery issuers. The
draft regulation also requires lottery vendors to keep the identity
of lottery winners confidential and demands transparency of money
taken in and how it is spent on a regular basis. Lottery funds
should cover lottery prizes and management funding for lottery
sellers. The remaining funds should be spent on the improvement of
public welfare, according to the draft, quoting that a percentage
of the revenue would be decided by State Council financial
departments. Individuals or government departments violating the
regulation by selling lotteries unauthorized by the State Council
would be fined and face criminal charges and any illegal gains
would be confiscated, according to the draft lottery regulation.
According to a recent report titled "Economic and Social
Development of China in 2007" by National Bureau of Statistics of
China (http://www.stats.gov.cn/ ), China's total lottery sales in
2007 had exceeded 100 billion yuan (US$13.7 billion), an increase
of 18 billion yuan or 20 percent over last year, setting a 20-year
record in China's lottery history. Of the total sales, 62 billion
yuan went to social welfare lottery while 38 billion yuan belonged
to sports lottery. In 2007, a total of 63 billion yuan worth of
social welfare lottery tickets were sold, raising 21.7 billion yuan
of social welfare funds. China spent a record 106 billion yuan
(US$14.7 billion) on welfare programs in 2007, with almost a fifth
of the funding coming from record lottery revenues. A major sources
of funding for social welfare programs, China Welfare Lottery,
which contributed more than 21 billion yuan, saw a 25 percent rise
in lottery sales to 63 billion yuan in 2007. The Ministry of Civil
Affairs reported that welfare expenditure increased by 34.6 percent
in 2007 over the previous year. 2007 is the 20th anniversary of the
launching of lottery in China, over the years lottery has
contributed considerably to the country's social welfare,
philanthropy and public sports. In 1987, the first year of lottery
issuance, the sales was barely 17.40 million yuan, then it enjoyed
a steady year-on-year growth. In 2006, it reached 81.93 billion
yuan. Lotteries have generated huge economic and social returns in
China over the past two decades. The country had issued 363 billion
yuan (49 billion U.S. dollars) of lottery tickets through 2006.
More than a third of the proceeds were spent on public welfare,
such as the development of public sports facilities, education and
health care for the handicapped. China launched its first lottery
in June 1987 and stipulates that a minimum of 35 percent of takings
must go to the welfare sector. For more information on China
Lottery Gaming Conference, please see: China Center for Lottery
Studies, University of Beijing: http://ccls.pku.edu.cn/ Ministry of
Finance of the People's Republic of China: http://www.mof.gov.cn/
Ministry of Civil Affairs of the People's Republic of China:
http://www.mca.gov.cn/ PRC Lottery Official Websites: China Welfare
Lottery: http://www.clo.com.cn/ China Lottery: http://www.zhcw.com/
China Sports Lottery:
http://www.lottery.gov.cn/http://www.lottery.gov.cn/xsdt/2008-11-24/1684803.html
World Lottery Association, WLA: http://www.world-lotteries.org/
Sohu Sports: http://sports.sohu.com/20081121/n260777657.shtml About
Mr. Guojing Su Mr. Guojing Su is a renowned lottery industry expert
in China and has served on PacificNet's board as an independent
director since January 2008. He is currently the CEO of Beijing
Lottery International Information Technology Development Ltd., a
member of the China IT Channel Committee as well as a member of the
9th Beijing Enterprise Committee of the China National Democratic
Construction Association. In 2005, Mr. Su became a shareholder of
Beijing Lottery International Information Technology Development
Ltd. In the same year, the company cooperated with the China Center
for Lottery Studies of Peking University to found the magazine
"Gaming Industry and Public Welfare" where Mr. Su served as a
Special Advisor. From 2004 to 2005, Mr. Su worked for the PRC
government as the General Manager of the Paperless Lottery
Department at the Beijing Welfare Lottery Center. Mr. Su is often
referred to by industry reporters as "China's Gaming Expert"
because of his insights on gaming in China. Mr. Su graduated from
the Shanghai Polytechnic University where he studied Science and
Technology from 1989 to 1992 and studied law at the Party School of
the Central Committee of C.P.C. from 1998 to 2000. Mr. Su also
worked in Russia for three years and speaks Russian. About PACT
PacificNet (OTC:PACT) (BULLETIN BOARD: PACT) is a leading provider
of gaming and mobile game technology worldwide with a focus on
emerging markets in Asia, Latin America and Europe. PACT's gaming
products are localized to their specific markets creating an
enhanced user experience for players and larger profits for
operators. PACT's gaming clients include the leading hotels,
casinos, and gaming operators in Macau, Europe and elsewhere around
the world. PACT employs about 500 staff in its various subsidiaries
with offices in the US, Philippines, Hong Kong, Macau, China. Safe
Harbor Statement This Company's announcement contains
forward-looking statements. We may also make written or oral
forward-looking statements in our periodic reports to the SEC on
Forms 10-K, 10-Q, 8-K, etc., in our annual report to shareholders,
in our proxy statements, in press releases and other written
materials and in oral statements made by our officers, directors or
employees to third parties. Statements that are not historical
facts, including statements about our beliefs and expectations, are
forward-looking statements. These statements are based on current
plans, estimates and projections, and therefore you should not
place undue reliance on them. Forward-looking statements involve
inherent risks and uncertainties. We caution you that a number of
important factors could cause actual results to differ materially
from those contained in any forward-looking statement. Potential
risks and uncertainties include, but are not limited to,
PacificNet's historical and possible future losses, limited
operating history, uncertain regulatory landscape in China, and
fluctuations in quarterly and annual operating results. Further
information regarding these and other risks is included in
PacificNet's Form 10K and other filings with the SEC. For more
information, please contact: PacificNet Beijing Office: Becky Zhao
Tel: +86-10-5922-5000 Email: 23/F, Building A, TimeCourt, No. 6
Shuguang Xili, Chaoyang District, Beijing, China 100028 DATASOURCE:
PacificNet Inc. CONTACT: PacificNet Beijing Office: Becky Zhao,
+86-10-5922-5000, or , or 23/F, Building A, TimeCourt, No. 6
Shuguang Xili, Chaoyang District, Beijing, China 100028 Web site:
http://www.stats.gov.cn/ http://ccls.pku.edu.cn/
http://www.mof.gov.cn/ http://www.mca.gov.cn/
http://www.clo.com.cn/ http://www.zhcw.com/
http://www.lottery.gov.cn/
http://www.lottery.gov.cn/xsdt/2008-11-24/1684803.html
http://www.world-lotteries.org/
http://sports.sohu.com/20081121/n260777657.shtml
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