DJI hopeful over online lottery resumption
CHESHIRE-based Chinese lottery operator DJI Holdings says it “remains hopeful” that online lottery sales in China will resume in the near future.
The company announced last month that provincial lottery centres had temporarily suspended accepting online purchase orders for lottery products while they underwent self-inspection processes ordered by the Chinese authorities.
The AIM-listed Knutsford company said it welcomes the public announcement of April 3 by eight government authorities in China outlining their commitment to promoting legal and licensed participants in the lottery industry and the importance of an integral online element.
A statement to the stock market said: “While the temporary suspension of online lottery sales that followed March’s government notice has not yet been lifted, the public announcement is the first step in the process towards better regulation and the elimination of a large number of unauthorised operators undermining the integrity of the market.
“While no firm timeline has been provided as to when online sales will resume and a protracted suspension could have a materially adverse effect on 2015 earnings, the company continues to sell welfare and sports lottery tickets through mobile channels and land-based outlets.
“At present, we remain confident that 2015 results are not impacted and we are hopeful that trading will resume in the near future.”
DJI Holdings, which floated last year, believes that it will benefit significantly from the positive long-term effects of robust regulation on the industry.
Shares nudged up 2.5% or 1.5p to 61p on the news.
