China’s lottery firms still waiting for Beijing to resume online sales

Online sports lottery technology provider 500.com has lost its chairman nearly three years after China suspended online lottery sales.

On Tuesday, the Nasdaq-listed 500.com published its Q3 earnings report, which showed revenue of RMB 43.2m (US $6.5m) in the three months ending September 30, a significant improvement on the nil revenue that the company generated in the same period last year.

Until March 2015, 500.com was one of only two companies that China’s Ministry of Finance had officially approved to participate in a ‘pilot program’ of online lottery sales. But a crackdown on corruption at provincial lottery administration centers led Beijing to impose a ‘temporary’ suspension of online lottery sales that shows no sign of being lifted anytime soon.

As a result, 500.com’s new revenue came courtesy of three recent acquisitions, including a majority stake in The Multi Group Ltd, the Maltese parent company of Nordic market focused online gambling site Multilotto.com; a roughly 40% stake in Chinese retail lottery operator Loto Interactive Ltd (formerly known as Melcolot); and an online social poker business.