London-listed DNI Holdings plc has won new contracts in the Heilongjiang province in mainland China.
In September 2015, DJI entered a joint venture with the Heilongjiang Sports Bureau—Longti—with a primary goal of providing funding and support services to all of the sports bureau’s commercial activities, particularly football and winter sports.
Lottery was soon added to Longti’s services, as DJI anticipates the government’s lifting of the lottery’s temporary suspension in China. The new JV will see the two companies create “a complete lottery solution” for the province—one that spans content, promotion and new media.
Now, DJI announced that Longti has already secured two major contracts in the province. The first is an exclusive service agreement to operate sports lottery scratchcard sales across Heolongjiang.
Under the agreement, Longti has full responsibility for all marketing and promotion of the scratchcard product, sales of which totalled RMB 635 million (£70 million) in 2015. In exchange, Longti will receive both marketing fee and share of revenues for its services.
The second contract is from the Heilongjiang Sports Lottery Administration Centre, which has tapped Longti to launch a sports betting platform on the province’s official website, along with the provision of news, analysis and exclusive information.
According to the company, the platform will promote sports betting during the forthcoming Euro 2016 football tournament, while also supporting in-store lottery sales throughout the province.
With these new contracts, DJI expects to gain access to data regarding lottery players in the province. Located in the north east, Heilongjiang is the country’s sixth largest province by area with an estimated population of 40 million.
“The JV, working closely with its lottery centre and corporate partners, is well positioned to benefit from the eventual return of online lottery sales,” said DJI CEO Darren Mercer. “Expanding our valuable database of information on all lottery players in the province gives us a key advantage for consumer targeting and engagement, reducing DJI’s dependency on B2B sales and enhancing our prospects for developing higher margin B2C operations.”