Expectations of a restart of internet lotteries are strong. China's Internet lottery was suspended five times from 2007 to 2015 under stricter industry regulation, but faced with huge benefits in the capital market. Since 2016, the Internet lottery pilot testing work has been carried out one after another, and the restart of the Internet lottery has ushered in a turning point. On May 24, five ministries and commissions, including the Department of Finance, the Department of Public Security, the Administration of Industry and Commerce, the Department of Civil Affairs, and the Sports Bureau, issued the “Notice on Accomplishing the Investigation and Punishment of Problems Related to Unauthorized Use of the Internet to Sell Lottery Tickets” to consolidate the results of the work to rectify the unauthorized use of the Internet to sell lottery tickets. On June 2, the “Notice on Winning the Third Party Security Test Project for the Technical System of the Sports Lottery Management Center of the State Administration of Sports” was issued to conduct a third-party security test on the Internet lottery sales management system. On May 23, the Chinese Government Procurement Network issued an announcement on the “China Welfare Lottery Distribution and Administration Center Telephone and Internet Sales of Welfare Lottery Overall Marketing Promotion Project”. On July 7, People's Online announced that it won the bid, and expectations for the restart of Internet lottery tickets are getting stronger and stronger. The lottery industry has a large profit margin and broad prospects for development. As a listed media and culture company controlled by People's Daily, People's Online is also one of the largest comprehensive online media on the Internet. Its main business includes advertising and promotion services, mobile value-added services, information services, internet lottery services, and technical services. Despite the year-on-year decline in Internet lottery service revenue from the subsidiary Renmin Australian Online Lottery, the gross profit margin remained around 70%, far exceeding the gross profit margin of other main businesses. Since the first batch of welfare lottery tickets was released in 1987, China's lottery industry has developed rapidly over the past 30 years. In 2015, the national welfare lottery sales volume reached 2015.11 billion yuan. With the relaunch of online lotteries, the profit margin of the lottery industry will increase, and the prospects for development are broad. Seize market opportunities and win the bid for Fucai Center's marketing promotion project. On July 7, the company participated in a public tender for the overall marketing promotion project of welfare lottery tickets for telephone and internet sales of the China Welfare Lottery Distribution and Management Center and successfully won the bid. As the only company that won the bid, combined with its strong state-owned and media background, People's Online had a full advantage in obtaining qualifications when the Internet lottery ticket sales business was restarted. Valuation and investment advice: We believe that although the country is currently in the stage of further regulating and implementing Internet lottery ticket sales, as expectations for the restart of Internet lottery tickets become stronger, the advantages of lottery-related companies with a strong background in the industry will become more obvious. As the only company that won the bid for Fucai Center's marketing promotion project, maintaining the steady development of its main business and seizing market opportunities, People's Online will usher in a new profit growth point. The company's 2016-2018 EPS is expected to be 0.29,0.35,0.40 yuan/share, respectively. Risk warning: lottery industry strategy risk; market competition risk;