Under-fire 500.com suspends operations of primary revenue source over licensing issues
6.500.com, the Chinese online sports lottery provider currently embroiled in a casino bribery scandal in Japan, says it has temporarily suspended its operations in Sweden.
500.com, the Chinese online sports lottery provider currently embroiled in a casino bribery scandal in Japan, says it has temporarily suspended its operations in Sweden after failing to renew its eGaming license before the expiration date.
According to an overnight announcement, 500.com’s Malta-based subsidiary The Multi Group (TMG) did not complete renewal of the license before its expiration but is “currently in close communication with Sweden’s eGaming regulatory authority and expects to renew its license and resume operations in Sweden in mid-February 2020.”
The suspension of operations is significant, with the company noting that TMG accounted for 99.1% of its revenues in 3Q19 of which 61.3% was generated from Sweden.
“The Company expects that revenues from TMG during the first quarter of 2020 will be materially and adversely impacted by the temporary suspension of operations in Sweden,” it said.
500.com is already reeling from a bribery scandal in Japan where it stands accused of bribing at least six politicians via consultants in pursuit of a license to develop an integrated resort in either Hokkaido or Okinawa.
The company’s Chairman, Xudong Chen, has already resigned over the matter while CEO has stepped aside while an internal investigation continues.