Philippine online gambling supplier PhilWeb faces obstacles in obtaining a new gaming license allowing it to operate on the territory of the country. Yesterday, the gambling supplier filed a report with the Philippine stock exchange, disclosing that the Philippine Amusement and Gaming Corporation (PAGCOR) has informed PhilWeb the only way for the company to acquire a new gaming license would be through public bidding.
Until the summer of 2016, PhilWeb supplied its gaming solutions to over two hundred eGames cafes in the Philippines, which provide residents of the country with online gambling products via terminals, connected to the internet. In December, Rodrigo Duterte, the newly elected president of the country announced his plans to ban online gambling on the territory of the Philippines. His decision led to PAGCOR’s decline to renew the gambling license of PhilWeb. In addition, President Duterte’s plans to order the closure of online gambling operations caused the publicly traded gaming stocks to plummet.
In October, PhilWeb’s Chairman Roberto Ongpin agreed to sell his entire stake of 53.76% in the company to Araneta III for the sum of PHP2 billion. According to the terms of the deal, as many as 771.65 million PhilWeb shares are to be sold at the price of PHP2.60 per share. Ongpin’s decision was prompted by his hopes that the company’s license would be renewed under different management.
PAGCOR’s Chief Executive, Andrea Domingo, clarified the decision of the cabinet officials has to do predominantly with illegal gambling concerns. Domingo informed PhilWeb that renewing their license was “no longer legally feasible.” The Chief Executive clarified that PAGCOR planned to grant eGames technology licenses through public bidding. According to Domingo, PACGOR’s selection of a service provider for their online gambling operations through bidding is in accordance with the Republic Act 9184.
PhilWeb was issued a license from PAGCOR in 2003 allowing the supplier to launch eGames Stations which are, in fact, internet cafes, dedicated exclusively to online casino gaming. PhilWeb’s games cannot be played from private homes or office locations. Domingo clarified that when the license was issued, PhilWeb was essentially the only online gaming services provider, but this was no longer the case in present days.
PhilWeb’s intellectual property license agreement expired in August 10, 2016. The license was not renewed, yet PAGCOR assured the supplier the process is being expedited and is on schedule with the timeline PAGCOR provided PhilWeb’s representatives with. This can be interpreted as a good sign, especially after PAGCOR confirmed it will still issue online gambling licenses.
Over 6,000 employees work in the 286 existing eGames centers. Gregorio Maria Araneta III, who assumes the position of PhilWeb’s Chairman, stated the employees will return to work as soon as a license is granted.
