Legal online gambling in a Chinese province?

Bloomberg business news reported Friday that the Chinese government is seriously considering a proposal to permit online gaming, a lottery or sports betting in Hainan, a strategic southern province roughly the size of Switzerland.

Sources informed Bloomberg that China is drafting a proposal in an unprecedented move that could reshape gaming in Chinas territories and transform the economy of the province.

“Government agencies under a party reform group headed by President Xi Jinping are considering allowing online gaming, a lottery or sports betting in Hainan,” Bloomberg reported, emphasising that the project is still at an early stage, and could open the door to physical casinos over the long term.

China currently bans gambling and casinos on the mainland.

The Chinese government has been planning measures to draw more business and tourism to Hainan, including a relaxation of visa rules and building a new airport. The province faces a fiscal deficit and contends with the debt woes of HNA Group Co., its biggest conglomerate, which is facing pressure from creditors after a global acquisition spree.

Hainan is often referred to as Chinas Hawaii for its beautiful beaches, and is home to naval and air force bases.