BUSINESS

China online lottery suspension has DJI Holdings looking to diversify revenue

TAGs: China, dji holdings, Nasdaq, sports lottery

dji-holdings-nasdaq-china-lottery-diversifyChinese lottery operator DJI Holdings plans to seek a secondary listing on New York’s Nasdaq exchange.

The UK-based DJI is already listed on that country’s AIM exchange but believes a Nasdaq presence will allow it build a stronger institutional shareholder base. The company hopes to complete the listing process during Q1 2016.

DJI says it plans to steer its online and mobile platform into “other non-lottery business streams” in a bid to diversify its revenue stream. Operators like DJI and Shenzhen-based 500.com have seen earnings sharply decline following China’s suspension of online lottery sales in March, which came after an audit revealed widespread corruption among provincial lottery administration centers.

While Beijing has yet to indicate when the ‘temporary’ online suspension might end, lottery operators were encouraged by last week’s announcement that provinces could now approve lottery sales and payouts without waiting for central government approval. Shares in operators like DJI and 500.com posted their biggest gains in months following the news.

Lottery officials on Hainan island won’t be making at least one payout after a winning player neglected to claim his RMB 2m (US $315k) jackpot in time. The sports lottery administration center on Hainan said the winning number was drawn on Aug. 11, yet the lucky winner failed to come forward during the stipulated 60-day period for claiming the prize, despite a media campaign urging players to check their tickets. The unclaimed prize will now go towards social welfare services.

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