500.com is a leading online sports lottery service provider in China with the largest market share in the six months ended June 30, 2013 and the second largest market share in 2012 in terms of purchase amount of sports lottery products, according to the iResearch Report.
The Company acts as an aggregator and processor of lottery purchase orders from its registered user accounts and currently derives substantially all of its revenues from service fees paid to 500.com by provincial sports lottery administration centers for the purchase orders of sports lottery products that are directed to such centers. 500.com offers a comprehensive and integrated suite of online lottery services, information, user tools and virtual community venues to its users.
The Company is among the first companies to provide online lottery services in China, and is one of the two entities that are authorized by the Ministry of Finance to provide online lottery sales services on behalf of China Sports Lottery Administration Center, the government authority in charge of the issuance and sale of sports lottery products in China. Through continued and significant investments over the past 12 years, 500.com has built a prominent brand, 500wan, which means “five million” in Chinese and is the typical amount of top prizes of most lottery products in China. 500.com believes its brand is known in the industry and by our users for its credibility and reliability.