E-Games raising funds for casino, new projects

MANILA, Philippines - IP E-Game Ventures Inc., the listed online gaming unit of IP Ventures Inc., is considering a private placement to a strategic or institutional investor to fund new businesses, which include casino operations.

“We expect to raise a substantial amount to finance our plans,” E-Games chief executive officer Enrique Gonzalez said in a text message.

E-Games, through wholly-owned unit RAN Online, has acquired 36,000 square meters of land at the planned casino complex in the Cagayan Special Economic Zone.

The casino offers a full range of game offerings such as blackjack, baccarat, craps, roulette and slots.

E-Games said it hopes to capitalize on the growing gambling sector, which is seen to register revenues of $3 billion by 2015 amid an emerging middle class and improved infrastructure.

It noted that casinos will be key drivers in achieving President Aquino’s vision of bringing in 10 million visitors to the Philippines by 2016.

Approximately 1.819 million international tourists visited the Philippines in the first five months of the year, 13.05 percent higher than the 1.61 million arrivals in the same period in 2011. Leading the pack was the Korean market, which accounted for 21.83 percent of total, followed by visitors from the US

E-Games said it believes there will be a spillover effect of tourists to other key locations in the country such as the Cagayan ecozone.

The casino venture is part of the group’s diversification program to engage in the business of hotels and leisure and food and beverage.

E-Games acquired a 75-percent stake in Digital Paradise Inc., the operator of Netopia, the most prominent brand of Internet cafes in the Philippines.

Last March, the company merged its online games business with Level Up! creating the largest gaming company in the country with an estimated 70 percent market share with over 37 million registered users and over five million active users per month.

Level Up is owned by China’s leading Internet services provider, Tencent and Naspers, which owns multiply.com, and several other online companies around the world. It pioneered the online gaming business in the Philippines.

Its parent firm, Level Up International, has a subsidiary in Brazil, which likewise pioneered and leads the online gaming business there. It also has a joint venture in the US and a user base in India.

Well-known published games from the parties include RAN Online, CABAL Online, Ragnarok Online, ROHAN Online, Grand Chase Online and the newly launched Bounty Hounds Online.