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AGTech Announces First Quarterly Results For the Three Months Ended March 31, 2020

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AGTech Holdings Limited, a leading integrated lottery, games and entertainment technology company in China, announced the first quarterly results for the three months ended March 31, 2020.

According to Ministry of Finance of the PRC figures, during the Three-Month Period, lottery market recorded sales of approximately RMB37.7 billion, a decrease of approximately 64.5% compared to the corresponding period in 2019. Of this, Welfare Lottery amounted to approximately RMB18.06 billion, representing a decrease of approximately 63.2% compared to the corresponding period in 2019. The Sports Lottery achieved sales of approximately RMB19.65 billion, representing a decrease of approximately 65.7% compared to the corresponding period in 2019. Other than the closure of national lottery market during Chinese Lunar New Year, the drop in sales was mainly due to the impact of the COVID-19 outbreak while the business hours of lottery sales outlets were significantly reduced. The Group is closely monitoring the latest development and impact of the COVID-19.

AGTech will continue to leverage on and explore opportunities for collaboration with Alibaba Group’s retail ecosystem to enhance on lottery distribution models where appropriate. The Group also anticipates a gradual rollout of our SaaS (Software-as-a-Service) platform aiming to serve and benefit users from all sectors within the lottery supply chain. Our platform is expected to be well equipped for applications within the Alibaba digital ecosystem, in addition to any potential change in distribution channels other than the current retail model.

AGTech’s Hardware division primarily supplies the Sports Lottery and the Welfare Lottery and has hardware deployed in multiple provinces, cities, municipalities and autonomous regions across China. The Group will continue to pursue tenders to supply to the lottery and other hardware market and bid for new contracts after resumption of tenders post COVID-19 delays.

Paytm First Games, a joint venture of the Group with One97 Communications Limited continued to develop its mobile games and entertainment platform in India, offers players a unique online experience with popular games content such as social games, card games and fantasy sports games. The Group is hopeful that Paytm First Games will continue to grow its user base, paving the way to monetize this unique platform, thus capitalizing on the significant potential of the fast growing mobile games and entertainment market in India.

 

Financial Highlights

Revenue of the Group for the Three-Month Period amounted to approximately HK$13.7 million, representing a decrease of approximately 32.2% over the corresponding period in 2019. Revenue contributions were mainly derived from lottery hardware, lottery games and systems, provision of lottery distribution and ancillary services, games and entertainment business in the PRC.

The decrease in revenue for the Three-Month Period was primarily caused by the decrease in sales of lottery hardware of approximately HK$3.4 million, decrease of approximately HK$1.5 million in revenue from the provision of lottery distribution and ancillary services, and decrease of approximately HK$1.2 million from the lottery games and systems.

Such decrease in revenue was mainly due to the prolonged closure of domestic lottery market which lasted nearly 40 days and delay in lottery hardware tender and delivery as a result of the COVID-19 pandemic. Under the market closure arrangements for Chinese Lunar New Year, the PRC’s lottery market was closed from 22 to 31 January 2020 and was originally scheduled to resume sales on 1 February, 2020. Amidst prevention and control of the pandemic, reopening of the PRC’s lottery market was postponed to 11 March 2020, since then sales of welfare lottery and sports lottery have begun to gradually resume subject to different arrangements in different regions.

The loss for the Three-Month Period was approximately HK$64.6 million, representing a decrease of approximately 9.0% over the corresponding period in 2019.

 

About AGTech Holdings Limited:

AGTech was incorporated in Bermuda and its shares are listed on the GEM (Stock Code: 08279). AGTech is an integrated technology and services company engaged in the lottery and mobile games and entertainment market with a focus on China and selected international markets. A member of the Alibaba Group with around 360 employees, AGTech is the exclusive lottery platform of Alibaba Group and Ant Financial Group.

AGTech’s businesses are broadly divided into two categories:

Lottery (including hardware, games and systems, provision of distribution and ancillary services); and Games and Entertainment.

AGTech is a Gold Contributor of the World Lottery Association (WLA), an associate member of the Asia Pacific Lottery Association (APLA), and an official partner of the International Mind Sports Association (IMSA).

 

Source: AGTech Holdings Limited

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India Bans Real-Money Gaming

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India’s lower house of parliament has passed a sweeping online gaming bill that, while promoting esports and casual gaming without monetary stakes, imposes a blanket ban on real-money games — threatening to disrupt billions of dollars in investment and significantly impact the real-money gaming industry, which could see widespread shutdowns.

Titled the Promotion and Regulation of Online Gaming Bill, 2025, the legislation aims to prohibit real-money games nationwide — whether based on skill or chance — and ban both their advertisement and associated financial transactions.

“In this bill, priority has been given to the welfare of society and to avoid a big evil that is creeping into society,” India’s IT minister Ashwini Vaishnaw said in Parliament while introducing the bill.

The proposed legislation restricts banks and other financial institutions from allowing transactions for real-money games in the country. Anyone offering these games could face imprisonment for up to three years, a fine of up to ₹10 million (approximately $115,000), or both. Additionally, celebrities promoting such games on any media platform could be liable for up to two years of imprisonment or a fine of ₹5 million (roughly $57000), the bill states.

Vaishnaw said the decision to bring the legislation was to address several incidents of harm, including cases where individuals reportedly died by suicide after losing money in games. However, industry stakeholders largely attribute these incidents to offshore betting and gambling apps, which many believe will not be addressed by this legislation.

“This law is bound to face litigation as it fails the test of proportionality under Article 19(1)(g). Instead of safeguarding consumers, it dismantles compliant onshore companies while opening the door wider for illegal offshore betting platforms that are the real source of financial harm,” said Meghna Bal, director of the New Delhi-based think tank Esya Centre.

Article 19(1)(g) of India’s Constitution guarantees citizens the right to practice any profession or carry on any occupation, trade or business.

Ahead of the bill’s introduction in the Indian Parliament, industry bodies wrote to Prime Minister Narendra Modi, urging him to intervene. The letter — sent by the Federation of Indian Fantasy Sports, All India Gaming Federation and E-Gaming Federation warned that the proposed legislation could benefit “illegal offshore gambling operations” while forcing Indian businesses to shut down. These industry bodies represent Dream Sports, MPL, WinZO, Gameskraft, Nazara Technologies and Zupee, among other real-money gaming companies.

“By shutting down regulated and responsible Indian platforms, it will drive [millions] of players into the hands of illegal matka networks, offshore gambling websites, and fly-by-night operators who operate without any safeguards, consumer protections, or taxation,” the letter stated. (Matka is a form of illegal gambling that originated in India, involving betting on random numbers.)

The three industry bodies estimated that real-money gaming startups in India have a combined enterprise valuation of ₹2 trillion (approximately $23 billion), generate cumulative revenues of ₹310 billion (around $3.6 billion), and contribute ₹200 billion (roughly $2.29 billion) annually in direct and indirect taxes. They also project a 28% compound annual growth rate that would double the industry’s size by 2028. The industry groups warned that the blanket ban could result in the loss of more than 200,000 jobs and the closure of over 400 companies.

A similar letter was also written to Indian Home Minister Amit Shah by these three industry associations.

The bill was passed by voice vote in a noisy lower house less than seven minutes after it was introduced for debate. It now requires approval from the upper house and the president to become law.

Meanwhile, some companies in casual gaming and esports have welcomed the move.

“We applaud this decision as it allows us to focus on the ongoing concerns as a business — monetization, retention, and most importantly, building great IP for India and the world, rather than having to explain to our audiences what we are to begin with,” said Sumit Batheja, CEO and co-founder of Ginger Games, which is part of Krafton’s Indian gaming incubator and makes hyper casual games.

Krafton is the South Korean gaming company behind the popular battle royale game PUBG.

In 2023, the Indian government amended the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, to curb “user harm” from real-money games and proposed self-regulatory bodies to limit illegal betting and gambling while allowing legitimate games. However, the self-regulation approach faltered due to conflicts among industry stakeholders over enforcement and standards.

New Delhi imposed a 28% tax on online gaming in 2023 to curb real-money play, prompting an outcry from industry stakeholders. Top investors — including Tiger Global, Peak XV Partners and Kotak — urged Modi to reconsider, warning of $2.5 billion in write-offs and the potential loss of one million jobs. The tax, however, remained in place, even as companies challenged its retrospective application in the Supreme Court. Recent reports suggest it may be revised upward to 40% under new rules.

The post India Bans Real-Money Gaming appeared first on European Gaming Industry News.

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Indonesia Prepares VPN Laws to Crack Down on Illegal Online Gambling

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Indonesia is preparing to introduce new rules targeting the use of Virtual Private Networks (VPNs), to crack down on the broader access to illegal online gambling. The move signifies a stronger push by authorities to tighten internet oversight amid growing concerns over unregulated digital activity.

While officials have not really explicitly mentioned gambling platforms, the intention seems to be clear. The aim of the move is to restrict tools that allow Indonesians to bypass government firewalls and access banned content. As the country battles a surge in illegal online gambling, VPNs have become a major target in the regulatory issue.

Indonesia currently ranks as the third-highest user of VPN services worldwide, behind only the UAE and India. A 2024 report by Windscribe, a global VPN provider, found that roughly 41% of Indonesian internet users use VPNs. This tool is largely used to bypass state-enacted censorship and access geo-blocked websites.

Online gambling, is strictly banned under Indonesian law, but is still thriving via VPN-enabled access to international platforms. These tools allow users to hide their digital footprints, and makes it challenging for authorities to enforce law.

“VPNs are being misused to reach sites and apps that are clearly illegal. We are developing a framework to ensure their usage aligns with the law,” said Semuel Abrijani Pangerapan, Director General of Informatics Applications at the Ministry of Communication and Informatics, in a recent statement.

The upcoming regulations, which are currently under ministerial review, aim to restrict VPN use by requiring providers to register with the government. Unregistered VPN services could be blocked outright. Officials are also considering legal consequences for users found accessing restricted services via unlicensed VPNs.

As for now, no timeline has been officially announced. But local media has reported that draft rules may be finalized by the end of the year.

The current online gambling environment in Indonesia is vast, and mostly hidden. Users often access offshore platforms hosted in regions with lenient enforcement. These platforms promise anonymity, instant payouts, and enticing rewards, thus driving a cycle of addiction and financial ruin for many.

The post Indonesia Prepares VPN Laws to Crack Down on Illegal Online Gambling appeared first on European Gaming Industry News.

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Indian Gaming Industry Expresses Concern About Proposed Online Gaming Bill

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The real money gaming (RMG) industry has been thrown into unprecedented turmoil after the Union Cabinet approved The Promotion and Regulation of Online Gaming Bill, 2025. The proposed legislation seeks to outlaw all forms of pay-to-play online games, covering both games of skill and games of chance. If passed in Parliament, this would effectively ban the operations of legitimate RMG platforms across the country.

Industry stakeholders say the move was taken abruptly and without dialogue. “There was absolutely no consultation with the companies that have built this sector,” one executive said, adding that the decision violates multiple constitutional safeguards and will almost certainly face a legal challenge.

The industry’s pushback comes at a delicate moment. Only last week, on August 12, the Supreme Court bench of Justices J.B. Pardiwala and R. Mahadevan reserved its judgment on petitions concerning the classification of online games of skill and chance. The Court’s ruling was expected to provide clarity on a sector valued at over $3 billion. Instead, the Cabinet’s surprise approval of the bill has left companies reeling.

Industry voices argue that the move disregards the legitimate contributions of RMG platforms to India’s economy. By their estimates, the sector contributes nearly ₹20,000 crore annually to the exchequer through taxes and compliance payments, while directly and indirectly employing more than two lakh people. A blanket ban, they argue, would wipe out this entire ecosystem overnight.

The strongest criticism has come from the government’s failure to control illegal offshore betting firms. Companies like Parimatch, 1xBet and Dafabet continue to operate in India, despite repeated reports of their involvement in money laundering, hawala transactions and illegal gambling.

“Instead of cracking down on these notorious offshore firms, the government is choosing to penalize Indian companies that follow rules, pay taxes, and create jobs. This flawed approach not only risks shutting down a legitimate industry but also allows the black market to thrive unchecked,” said an industry representative.

Industry insiders caution that if the bill becomes law, Indian users may simply shift to unregulated foreign platforms, further draining revenue away from the country and undermining consumer protections.

The government, however, has defended its proposal by highlighting the social costs of online money gaming. The draft note accompanying the bill points to the “immersive and addictive nature” of pay-to-play platforms, warning that monetary incentives have triggered rising cases of anxiety, depression and behavioural problems among young users.

Citing clinical studies, the note claims prolonged gaming has worsened mental health issues, particularly among children and adolescents. The draft further warns of financial risks, with many players suffering losses that have, in some cases, led to suicides.

“These platforms employ predatory tactics—loot boxes, microtransactions, and reward systems—that exploit psychological triggers to encourage overspending. Such practices create cycles of debt and vulnerability,” the note says.

Despite acknowledging concerns about addiction and financial harm, industry groups insist that prohibition is the wrong path. They argue that a balanced regulatory framework—similar to models adopted in advanced markets—would provide consumer safeguards without dismantling the sector.

“Banning regulated RMG firms while letting offshore betting companies operate unchecked will only worsen the problem. The government should be working with us to build safeguards, not pushing us out,” said a gaming association leader.

The post Indian Gaming Industry Expresses Concern About Proposed Online Gaming Bill appeared first on European Gaming Industry News.

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