The Directors of Sino Strategic International Ltd (SSI) are pleased to advise that SSI’s wholly owned China subsidiary, Shanghai Kelo Investment Management Ltd, has entered into an agreement with Shanghai Sports Lottery Administration Centre authorising Shanghai Kelo, under a Standard Licence, to distribute the New Single Match Jing Cai game at Shanghai Kelo’s Point of Sale at Hong Kou in downtown Shanghai.
The agreement is operational from 1 January 2010 to 31 December 2012 and renewable. The agreement, licensing Shanghai Kelo to operate one of the first four legal Sports Betting outlets launched in Shanghai, represents a significant milestone in SSI’s involvement in China’s emerging legalised gaming industry.
Legalisation of Sports Betting across China is important in developing the country’s legalised gaming market, while illegal sports betting which, according to various gaming industry estimates, could be turning over as much as US$10 billion a month. Shanghai would account for 15 to 20 per cent of the illegal turnover while Guangdong Province in the south has the biggest share and would account for half the illegal turnover.
At the same time, China Sports Lottery, which operates the parimutuel or pool Sports Betting game, is offering the highest prize payout ratio of 69 per cent compared to 65 per cent for all other legalised games. Commission on sales offered to licensed agents, including Shanghai Kelo, is also the highest in order to provide an attractive incentive to the agents to expand the legalised market. Shanghai Kelo has strong relationship with China and the Shanghai Sports Lottery authorities. Shanghai Kelo works closely with these gaming authorities to help establish the market for legalised Sports Betting and other legalised games.
With the signing of the agreement, the Hong Kou POS has commenced trading distributing Sports Betting products since 30 December 2009. The Hong Kou POS is expected to generate healthy additional revenue to Shanghai Kelo’s POS network and Hong Kou is expected to be a strong profit contributor to SSI’s China gaming operation. The successful launch of Sports Betting at Hong Kou has positioned Shanghai Kelo, to expand its Sports Betting business within Shanghai, where it already has the single largest land based gaming distribution POS network within China, into neighbouring provinces, as well as for the opportunity of online distribution.
Tags: Gambling, New contract, Sino Strategic International, Sports Betting, SSI
