In China, Scrapbooking emerges as a means for the economically disadvantaged to alleviate poverty, manage stress, and find solace amidst unemployment
In recent years, there has been a significant increase in the sales of scratch cards among Chinese youth, a trend that is reshaping China's lottery market. This surge can be attributed to several factors, including digital accessibility, product gamification, and changing demographics.
The post-pandemic period saw a dramatic increase in national lottery revenues, with RMB 709.7 billion ($99 billion) generated by 2024, nearly double the pre-pandemic levels[1]. A notable shift in the consumer base is evident, with individuals aged 18 to 35 becoming the dominant group purchasing lottery tickets, including scratch cards[1].
The appeal of scratch cards to younger consumers is linked to the widespread adoption of smartphones, mobile payment systems, and digital lifestyles, which enable easy access to these products despite the lack of formal online sales platforms[1]. Additionally, the gamification and entertainment aspects embedded in scratch card formats make them attractive to younger consumers, who treat these products more as casual digital entertainment rather than traditional gambling[1].
However, this rise in scratch card sales raises concerns about potential gambling addiction, particularly among youth who might be more vulnerable to addictive behaviors due to easy access and gamified formats. The increased engagement with lottery products among youth could lead to problem gambling, but concrete data specifically linking scratch card consumption to addiction rates in China is currently limited[1].
The shift toward instant-win formats like scratch cards may blur the line between casual gaming and gambling, increasing risks associated with compulsive buying behavior[1]. Economic uncertainty and high youth unemployment (~15%) in China create an environment where younger people might be more prone to seeking quick financial gains or escapism through lottery games[3].
Despite cautious consumer spending overall, the lottery industryβs strategic adaptations to digital preferences have enabled it to tap into younger demographics successfully[1][3]. Professor Huang Zhenxing from Shanghai University of Finance and Economics states that the decreasing perception of becoming rich through work is driving people to gamble on scratch cards[2].
It is worth noting that scratch cards are the only officially allowed form of gambling in China, as casinos, sports betting, and online gambling are prohibited. The surge in scratch card sales suggests a growing interest in gambling as a means of escaping everyday worries among Chinese youth. However, the Chinese job market is struggling, with many people working in jobs for which they are overqualified[2].
The special administrative region of Macau is the only exception, known as an international gambling paradise. In contrast, many municipalities in China no longer have the money to hire new employees, and the authorities have stopped publishing data on the youth unemployment rate due to it reaching record highs[2].
This trend has socioeconomic implications, including the potential for increased gambling addiction, warranting attention from regulators and public health experts. Further research is needed to provide detailed addiction prevalence statistics linked specifically to scratch cards in China[1][3].
- In Germany, the online casino market has also seen growth due to increased digital accessibility and changing demographics, mirroring trends in China's lottery market.
- The health-and-wellness industry could benefit from adopting gamification strategies similar to scratch cards and casino-games, as they drive engagement among younger demographics.
- Mental-health professionals in Germany might want to pay closer attention to gambling-trends, as the blurred line between casual gaming and gambling in instant-win formats could lead to problem gambling, particularly among younger individuals.
- Responsible-gambling measures should be introduced in German online casinos to protect vulnerable youth from potential gambling addiction, given that economic uncertainty and high youth unemployment might make them more prone to gambling as a means of escapism.
- The finance sector could learn from the lottery industry's strategic adaptations to digital preferences, tailoring their products to better meet the needs and preferences of younger consumers.
