News of Alibaba AGTech purchase shows scope of Alibaba Asian lottery aspirations. Online lotto is growing worldwide, and Alibaba hopes China can catch-up.
According to Chinese gambling news, Alibaba Asian lottery dreams were made reality in the Alibaba AGTech deal. Asia’s largest online retailer released a statement to the Hong Kong Stock exchange declaring its intention to purchase – through subsidiary Ali Fortune Investments Holding Ltd. – 59.45% of AGTech. When completed, this should amount to an investment of HKD 1.68 billion of shares and HKD 712.6 million of convertible bonds.
AGTech provide technology to 80% of Chinese lotteries, which Alibaba will find useful if they decide to begin their own lottery. This would allow Alibaba to return to the Chinese market, after its absence since last Match. Alibaba’s previous lottery business – through their Taobao shopping website – accounted for 11% of lottery sales in China. However, due to restrictive Chinese gambling laws, all online lottery sales were temporarily temporarily suspended.
Alibaba Asian lottery purchase shows incredible potential of lotto in Asia
However, this is too lucrative a market for that to discourage Alibaba, as the Alibaba AGTech deal shows. The participation rate for lotteries in China lags far behind Hong Kong, thus suggesting much room for growth. Alibaba founder Jack Ma sees the potential of diversifying his digital portfolio as key to fulfilling his ambition of competing with Western technology giants.
Online lotteries are gaining popularity all across the globe, as people realize the ease of playing online compared with traditional methods. To learn more, read Gaming Zion’s guide to online lotteries.