SBC News Voice of the Sports Betting Industry
The share price of Chinese New York listed sports lottery operator 500.com, fell to a 12 month low ($9.50) following the announcement that a number of Chinese provincial lottery sales hubs would temporary suspend sales of lottery products.
The decision by the sanctioned provincial hubs to suspend sales follows the Chinese Ministry of Finance calls for self-regulation of unauthorised lotter sales targeting the Republics consumers (notice issued on 15 January)
The Ministry of Finance notice mandates that provincial and municipal government branches, which include financial, civil affairs, and sports bureaus, inspect and take remedial measures for unauthorized online lottery sales within their jurisdictions.
The temporary suspension has hit sales of four 500.com high performance sports lottery products, as the provincial sales hub conduct reviews of commercial contracts and arrangements with third party lottery sales agents.
500.com were quick to respond to negative comments made regarding the operators operating viability in China. The company issued an email to investors which denied recent speculation that the Republic’s authorities would punish its lottery operations. The company fully denied that CEO Man San Law had been detained during the Chinese New Year holiday period
“The rumors that you have heard regarding the Chinese government’s revocation of 500.com’s license and that Mr. Man San Law has been detained by authorities are false and have conveniently [been] spread during China’s seven-day New Year’s holiday,” the email read.
The US market has reacted to the operator negative news and rumours, by lowering 500.com value rating. Business commentators have pointed that 500.com has numerous weaknesses throughout its operations.
