Hong Kong online lottery firm buys social poker enterprise

Hit hard by the Chinese government’s now 18-month-old anti-corruption ‘suspension’ of online lottery sales (see previous reports), the Hong Kong-based online lottery firm 500.com appears to be diversifying to survive.

Media reports from the region Friday indicate that the company has made an acquisition move on a social poker platform enterprise, acquiring a 51 percent stake in Qufan Internet Technology Inc. and Shenzhen Qufan Internet Technology Co. Ltd for a consideration of RMB 110.5 million – about US$16.2 million.

Some observers have speculated that 500.com management may be attempting a reprise of last May’s sale of online payment processor Sumpay for a quick profit after owning the company for just 5 months, but there is at present no indication that this might be the company’s intention.

The loss of online lottery revenues since the Chinese online sales ban was imposed is a compelling reason to hold on to companies that are at least generating some revenue.

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