Chinese authorities announced last week that they would be investigating unofficial lottery operators and that any such business wishing to enter the Chinese lottery market must first gain approval from the Ministries of Civil Affairs and Finance.
500.com had assured investors that it had been granted the necessary permissions when it was listed on the New York Stock Exchange in 2013 and reiterated those claims in this weekend’s press release, stating that the company was “one of the two entities approved by the Ministry of Finance in 2012 to provide online lottery sales services on behalf of the China Sports Lottery Administration Center.” The release goes on to say that the company will continue to work with the lottery administrators to develop an online sales management system and, to the best of its knowledge, the approval “has not been revoked or amended.”
It was revealed last month that a number of 500.com investors had filed lawsuits, claiming to have been misled over promises made in the lead up to the initial public offering.