Earlier this week, China's state council, China's cabinet, gave permission to the southern province of Hainan to look into the possibility of developing pari-mutuel sports lotteries and instant sports lotteries, which could lead to legalized

wagering on horse racing.

An article on xinhuanet.com cited speculation that Hainan could become China's answer to Las Vegas.

Wang Xuehong, director of the China Centre for Lottery Studies, said that previously pari-mutuel sports lotteries could only bet on the results of foreign basketball and football games, not domestic games, out of fear of match fixing and other unfair practices.

"Now the rules allow pari-mutuel sports lotteries to bet on the results of domestic and international sports events that are held in Hainan, which will be a big step forward for China's 22-year-old lottery business," Xuehong was quoted as saying.

Click here to the read the xinhuanet.com article in its entirety.

(With files from xinhuanet.com)