It has been a year since Chinese authorities suspended online lottery sales to clean up the once black market. While it’s still uncertain when the halt will be lifted, domestic internet giants are taking a more upbeat view of the industry’s growth in China.

Alibaba, the Chinese e-commerce behemoth poised to expand into entertainment, online health and securities, is spearheading a foray into a new industry: lottery. Hong Kong-listed lottery service company AGTech announced today that they have entered into an subscription agreement with a company in which Alibaba holds 60 percent and Alibaba’s financial affiliate Ant Financial owns the remaining 40 percent.

Under the deal, the Alibaba-backed company is going to hold a 59.5 percent stake in AGTech in exchange for 2.4 billion HKD (about $300 million USD) at $0.35 HKD a sare, much lower than the company’s market price of $1.99 HKD per share (at closing price on March 5). The market cap of AGTech is nearly 10 billion HKD as of the same date.

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Emma Lee

Emma Lee is Shanghai-based tech writer, covering startups and tech happenings in China and Asia in general. We are looking for stories related to tech and China. Reach her at lixin@technode.com.