Arbitration body upholds lease deal between PCSO, Prime Gaming

Prime Gaming Philippines Inc. said the arbitral tribunal of the Integrated Bar of the Philippines has upheld the amendments to its contract to lease lottery equipment to the Philippine Charity Sweepstakes Office (PCSO).

The contract amendments, approved by PCSO’s old board in 2004, allowed Prime Gaming to raise equipment rental rates and extend lease terms. The changes were meant to allow Prime Gaming to recoup investments itwill make to upgrade and replace PCSO’s online lottery equipment for the main island of Luzon.

Prime Gaming said the arbitral tribunal declared the amendments to the lease contract as valid and immediately enforceable.

The company plans to expand the online lottery operations of the PCSO in Luzon to 3,000 from 1,600.

Prime Gaming’s holds 100-percent interest in Philippine Gaming Management Corp. (PGMC), a Philippine corporation operating an equipment lease contract with the PCSO for the supply of terminals and related accessories for the lotto operations in Luzon.

The company has interests in PGMC’s line of business, namely, the leasing of facilities of the online lottery system in Metro Manila and the rest of Luzon to PCSO. More than 80 percent of the group’s revenues are derived from PGMC’s rental revenues from PCSO.

Since the acquisition of PGMC in 1998, Prime Gaming has not made any more acquisitions and has remained as an investment holding compan