Date
25 September 2017
Chinese authorities are said to be preparing to issue internet lottery operator licences ahead of the World Cup football tournament. Photo: Bloomberg
Chinese authorities are said to be preparing to issue internet lottery operator licences ahead of the World Cup football tournament. Photo: Bloomberg

Lottery firms draw big bets ahead of World Cup

VODone (00082.HK), China LotSynergy Holdings (01371.HK), REXLot Holdings (00555.HK) and other lottery-related firms saw their share prices get a significant boost on Monday on reports that mainland authorities will grant formal licenses for internet lottery operations before the World Cup football tournament kicks off in Brazil next month.

The Hong Kong Economic Journal cited sources as saying that the first batch of companies to be conferred with the lottery licenses are likely be those holding licenses for sports lottery and telephone lottery sales under an existing pilot scheme.

The speculation over new licenses sent VODone shares up almost 21 percent on Monday, taking the lead in the sector. The stock closed at 81 HK cents (10.45 US cents). China LotSynergy leapt 13.1 percent to 68 HK cents and REXLot added 8.6 percent to 88 HK cents.

Analysts say the licensing will formally authorize lottery activities, giving support to related counters that had been dragged down earlier by a correction in the shares of companies engaged in the casino business in Macau.

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