AGT, a 51% owned subsidiary of the Group, was/has been the supplier of two virtual sports lottery games in the PRC, namely, a football themed virtual sports lottery game “e-Ball Lottery” in Jiangsu Province and a motor racing-themed virtual sports lottery game “Lucky Racing” in Hunan Province.
As a result of the Joint Notice announced by the Ministry of Finance, the Ministry of Civil Affairs, and the General Administration of Sport of the PRC, the Group received a written implementation letter dated 23 October 2020 from the Jiangsu Sports Lottery Administration Centre in relation to the cessation of the sales of e-Ball Lottery with effect from 1 November 2020.
As a result of the Joint Notice, the sales of Lucky Racing, as a high frequency sports lottery game, shall also cease after the Chinese New Year of 2021.
Accordingly, the sales of “Lucky Racing” will cease and “e-Ball Lottery” had ceased with effect from their respective effective dates. The Group is assessing internally the impact on the Group and may take appropriate actions to safeguard the overall interest of the Group. For details, please see the Company’s announcement on 26 October 2020.