500 .com, which has been transforming from a Chinese online lottery company into a cryptocurrency mining enterprise, says it has completed the acquisition of a stake in Loto Interactive for HK$105 million ($13.5 million).
Loto Interactive provides lottery-related services and data analysis and storage services. It runs three major data centres, including the provision of power and premises to customers engaged in cryptocurrency mining. 500.com pivoted its focus after Beijing banned online lottery sales.
The acquisition means the company will now own 54.3 percent of Loto Interactive and under takeover rules will be required to bid for all outstanding stock at HK$0.75 a share.
The world is bouncing back, or at least coming to grips with the fact that going forward not much will be the same as before. Commendably, this industry quickly understood the need to adapt to a new normal, and that the days of targeting the low hanging fruit of the VIP sector are gone.
Over the years, many of the answers have been remarkably prescient in their forecasts for the near-term direction of Asia’s gaming industry. However, we can safely say that no one came anywhere close to guessing what 2020 may have had in store.