500.com resumes Multilotto operations in Sweden
Chinese lottery provider 500.com announced the resumption of activity in Sweden, via its The Multi Group (TMG) lottery betting subsidiary, having renewed its online gaming licence in the jursidiction for the next two years.
The licence covers secondary lottery and casino, allowing the TMG-operated Multilotto brand to return to business in Sweden after a period of inactivity in the market.
Activity was halted in January 2020 after 500.com failed to renew the year-long licence under which it was operating.
While it hoped to resume operations by mid-February, and expressed its wish to complete the renewal process as quickly as possible, delays have left the company unable to operate in the jurisdiction until now.
For the fiscal year ending 31 December 2019, revenue generated by TMG accounted for approximately 89.7% of 500.com’s total net revenue, of which approximately 61.3% was generated in Sweden.
Earlier this month, 500.com revealed that despite seeing a 51.1% year-on-year drop in revenue during the first half of 2020, it was able to significantly reduce its comprehensive loss in the period.
Overall revenue for H1 2020 amounted to RMB99.1m (£10.8m/€12.1m/$14.5m), less than half of its revenue for the same period in 2019.
However, operating expenses were also reduced, coming in 51.1% lower than the previous year, while cost of services were down by 72.4%, and sales and marketing expenses reduced by 67.1%.
Comprehensive loss in the six months to 30 June therefore amounted to RMB86.3m, down 33.6% from RMB130.0m in the same period last year.
The Multi Group was acquired by 500.com in May 2017, securing a 93% share of the business in a deal worth approximately €49.8 million ($55.8 million)