Hainan, an island province and China’s southernmost point, is planning to introduce guidance for the development of sports tourism, including water sports, beach sports and horse racing, Hainan Daily reported.

Observers thought Hainan might be allowed to develop both horse racing and sports betting, but an anonymous insider said the new policy will be limited to the development of sports, with no associated gambling permitted.

At the end of last year, the National Development and Reform Commission stated in a plan that it encourages Hainan to develop beach, water, horse racing, aviation, automobile, motorcycle and outdoor sports, aiming to make the province a national sports tourism demonstration zone.

This is the first time in two months that the government has mentioned horse racing explicitly.

The new guidance is expected to be introduced this year.