500.com could be broke by year’s end if China maintains online lottery suspension

Online sports lottery operator 500.com has reported zero revenue for the second quarter in a row thanks to China’s ongoing suspension of online lottery sales.

On Thursday, the Shenzhen-based 500.com again reported ‘nil’ in the categories of revenue and earnings in the three months ending Sept. 30. The inactivity resulted in an operating loss of RMB 79.2m (US $12.4m) compared to a RMB 39.3m profit in the same period a year ago.

In February, Beijing officials ordered a ‘temporary’ suspension of online lottery sales after a surprise audit revealed widespread corruption at provincial lottery administration centers. The suspension, which took effect March 1, shows no sign of ending soon.

China’s Ministry of Finance never officially authorized online lottery sales but 500.com was one of two companies authorized to take part in an online lottery pilot program. On Thursday, 500.com CEO Zhengming Pan reiterated the company’s position that the Ministry has offered no indication that it intends to revoke or amend this authorization once the ‘temporary’ suspension is lifted.