Erstwhile Chinese online sports lottery operator 500.com has inked a deal to develop land-based lottery sales channels on the Chinese mainland, while ditching the company’s online social poker holdings.
On Tuesday, the Shenzhen-based, Nasdaq-listed 500.com announced a deal to cooperate with the China Sports Lottery Administration Center on the development of “physical channels to sell sports lottery tickets.”
With the national Sports Lottery overseer’s support, 500.com plans to enter into deals with provincial sports lottery centers to install and maintain lottery terminals “to enhance the convenience of sports lottery ticket purchases, enlarge customer base and optimize user experience for lottery purchasers.”
Until March 2015, 500.com was one of only two companies approved by Chinese authorities to participate in a “pilot program’ for online lottery sales. But Beijing imposed a “temporary suspension” of online sales three years ago after national audits exposed widespread fraud at provincial lottery administration centers.