PhilWeb’s License Renewal Must Go Through RA9184

MANILA, Philippines – PhilWeb Corporation (PSE:WEB) sent a request to PAGCOR to accelerate its Intellectual Property License and Management Agreement (IPLMA) renewal on December 1, 2016. WEB receives the confirmation from Philippine Amusement and Gaming Corporation (PAGCOR) that renewing its IPLMA is no longer possible as it was more than a decade ago when WEB was still the lone service provider for PAGCOR. PAGCOR must comply with the Republic Act 9184.

In a disclosure to the Philippine Stock Exchange (PSE), Cliburn Anthony A. Orbe, PhilWeb Corporate Secretary and Corporate Information Officer, reported that they have received PAGCOR’s letter dated December 12, 2016 only on December 22, 2016.

According to Andrea D. Domingo, PAGCOR Chairman and Chief Executive Officer, on behalf of the gaming firm, that they would like to clarify the meeting between PhilWeb officials and PAGCOR. On November 4, 2016, PAGCOR reiterated that they have explained to PhilWeb representatives that the online gaming operations’ service provider would be selected based on the Republic Act Number 9184.

The given regulation, RA9184, states that public bidding should take place. In addition, Domingo stated in the letter that the PAGCOR authorities have explained to PhilWeb officials that the renewal of its  IPLMA would only be made possible through the RA9184. Otherwise, the contract’s extension would not be feasible.

PAGCOR makes it comprehensible to PhilWeb that though it has been the sole service provider for PAGCOR more or less 10 years ago, the situation is now different.

Domingo added that the PAGCOR committee thought that the representatives of PhilWeb understood the minutes of the meeting. The decision settled on by the parties is also anticipated by PAGCOR to be relayed to the concerned authority.

After the refusal of PhilWeb’s authorization renewal to deliver software systems, it applied for a new license. The CEO of PAGCOR ended the letter assuring that they are expediting the procurement process (in accordance to RA9184) in line with the timeline, which was also given to PhilWeb officials.

This month, during the signing of 2017 budget by President Rodrigo Roa Duterte, the national leader ordered the closure of online gaming companies. Following the order of the President, stocks of PhilWeb dropped on December 22. However, PAGCOR clarified that this would only cover the unlicensed firms.

According to PAGCOR Chairman, the Malacañang Palace would provide an executive order to clarify the matter given the President lashed out the online gambling companies. Moreover, Domingo stated that online gaming applications have to go through PAGCOR.

PhilWeb is responsible for e-Games, which are casino games-focused internet cafés. Players could select from over 300 casino games from the software provided by the firm, such as sports betting, baccarat, slot machine games, blackjack, and video poker.

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The Stock Signals Philippines is the online news media arm of Equilyst Analytics. Inc., an SEC-registered stock market consultancy firm in the Philippines that guides Filipinos on long-term investing and short-term trading and offers mentoring services.

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