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 and e-Ball Lottery had ceased with effect from 9 February 2021 and 1 November 2020 respectively, and the Group would no longer generate any revenue from the Virtual Sports Lottery Games commencing from 9 February 2021. For details, please refer to the Company’s announcement on 26 October 2020.