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Online Gaming And Online Lottery Coming Soon?

|Includes: Agtech Holdings Ltd. (AGTEF), BABA, TCEHY

BLOOMBERG reported that "According to a reform agenda approved by China’s cabinet and announced in the official Xinhua News Agency Saturday, Beijing would encourage horse racing and expand Sports lotteries." in Hainan Island.

In February, Bloomberg REPORTED  that government agencies under a party reform group headed by Xi were considering proposals to support the island, including allowing online gaming and a lottery.

There are lots of speculations surrounding the government reform of Hainan Island including licenses for a Casino, Sports Betting, Online Lottery sales, etc.

I remember AGTech talking about potential opportunities in Hainan Island three years back, but they also warned me not to get too excited because it could take a long time to materialize if ever.

The bottom line is this. We are getting closer, and the narrative is getting positive by the day.  We go from NEGATIVE during 2013-2015 sector audit.  To QUIET from 2016-2017 (During this time Alibaba and Tencent acquired Lottery expertise through an acquisition of AGTech and China Lot Synergy) To POSITIVE this year with Alibaba and Tencent working with Sports and Welfare Lottery for a nationwide self-verification and redemption of Instant Scratch Lottery tickets using a mobile phone.  This is one step away from Internet Lottery Sales, and a proof that the national lottery platform is built out and Alibaba & Tencent are already integrated.

Gaming and Lottery related stocks could receive a boost next week on the back of this news by Xinhua, the official newspaper of Beijing. I'm hearing that we will get clarification towards month end.

Disclosure: I am/we are long TCEHY. BABA. AGTEF.