SBC News 500.com share price set to tumble as China suspends lottery sales

500.com share price set to tumble as China suspends lottery sales

500The Easter holiday break has provided further bad news for embattled New York listed Chinese sports lottery operator 500.com, as Chinese authorities made a new announcement regarding the sale of online lottery services/products.

A joint public communication led by China’s Ministry of Finance and eight other governmental bodies stated that all lottery sales serviced through online verticals or through third party agents needed to be terminated immediately.

Furthermore the announcement stated that all lottery providers seeking to do business in China, had to gain consent from the Ministry of Civil Affairs with further written approval from the Ministry of Finance. The announcement stated that Chinese local authorities had begun investigating unlicensed lottery sales within its provinces.

In February 500.com had seen its share price tumble on the announcement of a lottery sales suspension by a number of provincial lottery hubs following a warning from the Chinese Ministry of Finance regarding unsanctioned lottery provisions.

Ever since it’s October 2013 IPO, the lottery operator has been plagued by rumours of unlicensed lottery services targeting China. 500.com governance had assured investors that it had gained the necessary approval from Chinese authorities in order to operate sports lottery services.

In March an assembly of US law firms representing 500.com IPO investors filed multiple federal securities fraud lawsuits against the operator, claiming that the company’s investors had been misled by 500.com with regards to its 2013 IPO prospectus.

Numerous business news sources have stated that 500.com share price will likely tumble following the announcement by the Chinese Authorities as market trading resumes following the Easter holiday break.

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