The directors' statement is as follows:
"After 11 months of trading, it is with regret that we announce that Loteri Cymru has ceased operating and there will be no further draws.
Whilst the lottery has had a growing base of loyal weekly players, unfortunately that was not enough to make the lottery financially viable.
We are proud that £120,000 has been distributed to good causes in Wales and over £350,000 in prize money.
Players with money remaining in their account, or with outstanding prize money, will naturally be concerned. We have been in discussion with several interested parties and are hopeful that the business can be sold, enabling players to continue to buy tickets, win prizes and support good causes in Wales.
We thank everyone for their support over the last year."