500.com Ltd, a Chinese online company which also offers online sports wagering, wants to launch an initial public offering (IPO) worth $150 million in the United States with (tacit) approval from the Chinese government.
This could represent a shift in attitude by the Chinese government in an effort to fight against illegal internet sports betting in the country. A government-sanctioned online sports betting market would also be the biggest thing to have ever happened to the sports betting industry in China.
A source close to the Chinese lottery industry stated that the gambling platform the company plans on using will include a tracking system which will keep players in constant communication with the data centre in order to prevent cross-border gambling.
The source said, "If you had say an application on your phone for the new mainland online lottery, you would need to have it ‘talking’ to the national telecommunications system in China. There will probably be a requirement that the app is linked to a global tracking system, making sure you are physically located in the right place in order to access the service legitimately".