The Chinese province of Hainan has joined its mainland counterparts in discouraging investment in gambling operations.

In August, Beijing authorities announced that Chinese citizens were forbidden from making overseas investments in gambling, the sex industry and core military technology businesses. Hainan authorities are now taking their own steps to curb a recent local surge in gambling-related investments.

An investigation by Chinese media outlet Caixin revealed that over 70 companies had registered as internet gambling businesses in Hainan over the past year. Each of these companies, which involved either traditional online gambling, lotteries or race betting operations, had pledged over RMB 10m (US $1.5m) in capital.

The surge in investment was reportedly based on rumors that the government was planning on legalizing horserace betting. Such rumors have been circulating since 2009, but in August the Hainan government inked an agreement with a sports administrative body that called for both parties to “support the exploration of developing sports betting and instant lotteries for large international competitions.”