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New Law allows Chinese provincial governments to approve lottery sales
Friday October 16,2015 : HOPE RESURGES FOR CHINESE ONLINE LOTTERY OPERATORS
New directive allows Chinese provincial governments to approve lottery sales.
The shares of Chinese online lottery sales companies received a boost this week on news that the Chinese central government has allowed provincial authorities to approve lottery sales and pay-outs without waiting for central government approval.
The Bloomberg business news service reports that shares in Hong Kong-based 500.com advanced 6.2 percent to $20.20 on Thursday, the highest since August 17. Trading volume of 1.4 million shares was more than double the daily average of the past three months.
500.com reported on social media that China removed a requirement for central government approvals on lottery sales and pay-outs, as the national State Council announced the cancellation of 62 administrative approval items, including lottery approvals, on its website.
Bloomberg says that China has gone to unprecedented lengths to support economic growth, increasing stimulus to the real estate sector as well as the auto and casino industries as the country’s leaders are poised to lower their growth target for the next five years at a meeting Oct. 26-29 in Beijing amid challenges from rising debt to excess industrial capacity and bloated state enterprises.
Online lottery companies have been struggling since the Chinese central government ordered provincial authorities to suspend activity in order to stamp out perceived questionable conduct and corruption in the vertical
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