Lottery service producer AGTech has announced it will be utilizing “certain channels and networks” of the Alibaba Group for the sales and distribution of its lottery products and services.
The agreement, announced on January 25, 2017 – will see the company sell and distribute the lottery products (in physical form) through channels and networks of the Alibaba Group, including physical stores, as well as retail points of sales or merchants registered with the Alibaba Group.
The two companies have agreed to a 50:50 sharing agreement for the commission income generated from these channels.
According to the filing from AGTech on Wednesday, the group has also been authorized to operate the lottery channel on the online platform of the Alibaba Group, which would be accessible once the online lottery suspension is lifted.
The agreement also allows for the Alibaba Group to provide technology services and resources to AGTech, including authorisation of the use of cloud computing technologies, e-commerce technologies and provide other technology services and support.
The agreement, starting on January 25, 2017 is set to end on December 31, 2019.