last week, I spent an hour at the scratch and win lottery place... couldn't lose my 20RMB --- walked away with an extra 10rmb .......  went back yesterday and gave it and another 100 back in about 10 minutes.

Me too.    and do it for my GF, I do not gamble much.  She loves the scratch tickets, and I do think she does not like to gamble but to win !.  I do the buying, and when I return for another batch maybe a week later, cash in any winners.   I get no flack at all.  Yhey check it to confirm a winner, and hand out the cash.

On Welfare Lottery have won a couple of prizes, but also minor.  I played on her behalf once the number she was given when admitted to hospital for eye surgery.  That gave us 5,000 yuan back.  And also played the number given to her daughter at the H School entrance exam, that paid for her first year of high school as an intern.

I won 888rmb on a fapiao one time, does that count? Got the money no problem.

I've had a few friends win some money on scratch tickets, and they got paid ok.

I haven't heard of any foreigners winning a MAJOR amount, but I'd assume that anything over say 5000rmb would be subject to some form of taxation (income most likely), but I don't honestly know.

But, on the other hand, everyone I have ever talked to that has won something from lotteries here have been paid, both foreigner and Chinese alike.