Beijing Caishijie Information Technology Company Ltd, a subsidiary of VODone Ltd, has signed an agreement with SmartTrans Technology Company Ltd for rights to distribute the V1 mobile internet gambling lottery application throughout China.
The V1 lottery application, created by VODone and distributed by SmartTrans, allows users to directly access and gamble on all government lottery offerings provided by China Welfare Lottery Management Center. The V1 application has been approved by the Ministry of Civil Affairs regulatory agency and is in full compliance with Chinese gambling laws.
According to the terms of the agreement, SmartTrans is the sole company permitted to distribute the V1 lotto app to all customers of China Mobile and its subsidiaries. SmartTrans has a non-exclusive right to provide the lotto wagering app to mainland PRC subscribers of all other mobile services.
In addition, SmartTrans negotiated in what is being described as ‘a very lucrative arrangement to receive a percentage based commission on every wager placed through VODone’s V1 application by SmartTrans customers.’ It is currently illegal to gamble or play online poker in China mainland.
China has the fastest growing gambling industry of any country with a 25% yearly growth in 2010 alone, with CNY96.8 billion in revenues. The only legal forms of gambling in mainland China are provided by the Sports Lottery and the Welfare lottery with revenues used to fund social welfare and sports throughout the country.