SBC News Voice of the Sports Betting Industry
Chinese online sports lottery operator 500.com’s senior management have hit back at claims that the operator does not have the legal and regulatory requirements to operate gambling activities in China.
500.com, who floated on the New York Stock Exchange in November 2013, has seen its share price fall after news publications disputed the operators licensing requirements to service sports lotteries in the region. 500.com issued a corporate statement claiming that the news items published had been misleading and inaccurate in the reporting of the company’s legal operations with regards to China and its current accounting framework.
US business news reports had raised concerns regarding the operators regulatory and accounting operations. On Thursday Jason Moser Senior Business Analyst for Motley Fool commented that 500.com could see itself embroiled in online regulatory issues and blocks that have restricted digital companies targeting Chinese online customers.
Furthermore Moser questioned the operators unclear and weak accounting practices, which he felt should be a warning signal to potential investors in 500.com. Although now listed in the NYSE, Moser pointed that the operator had failed to implement the required corporate accounting standards, a factor that does not endear confidence amongst business analysts.
500.com were quick to hit back on the claims made against them, telling news sources that 500.com had gained operational approvals from the Ministry of Finance of the People’s Republic of China to provide lottery services to Chinese citizens. The operator stated that the claims made against them on regulatory issues were completely unfounded and led by speculation rather than fact.
With regards to its accounting standards 500.com stated that these negative claims were due to technicalities placed by US corporate policy standards . 500.com senior management were aware of this issue and were currently working to bring better clarity to its accounts division in the coming months in order to meet US standards.
