MANILA, Philippines – Gross gaming revenues of the Philippine Amusement and Gaming Corp. (Pagcor) from electronic games declined by half in the third quarter of 2016 due mainly to the cessation of operations of PhilWeb Corp. which has not been able to renew its license yet.
Data from the gaming regulator showed that gross gaming revenues from electronic games dipped to P721 million in the third quarter of 2016 from P1.467 billion in the same period in 2015 and P1.457 billion in the previous quarter.
PhilWeb is behind the e-Games network, which are internet cafes exclusively dedicated to casino games. With technology provided by PhilWeb, patrons can choose from more than 300 casino games, including baccarat, blackjack, various slot machine games, video poker and sports betting.
There were 268 operating e-Games cafes across the country, majority of which are owned and operated by independent entrepreneurs.
PhilWeb, now chaired by businessman Gregorio Araneta III, has not been operating since Aug. 10, 2016 when its license expired.
As of the end of the third quarter of 2016, Pagcor’s revenues from electronic games reached P3.557 billion, lower than the P4.191 billion generated a year ago. For the whole of 2015, Pagcor’s revenues from electronic games reached P5.619 billion.
PhilWeb is still negotiating with Pagcor for the renewal of its license. In response, Pagcor said it would have to bid out the service contract for its online gaming operations, particularly for the e-Games network instead of automatically awarding this again to PhilWeb.
Pagcor chairperson and chief executive officer Andrea Domingo said the renewal process of PhilWeb’s intellectual property licensing and management agreement (IPLMA) as provider of the so-called e-Games network would now have to go through competitive bidding.
“The selection of the service provider for Pagcor’s online gaming operations will be in accordance with Republic Act 9184, preferably through public bidding,” Domingo said.
RA 9184, the Government Procurement Reform Act, calls for public bidding in the procurement of products and services by state agencies and government-owned corporations.
Domingo said merely renewing the IPLMA, without going through RA 9184 is no longer feasible.
“The situation when the IPLMA was originally implemented by Pagcor and PhilWeb was essentially the lone service provider more or less a decade ago is no longer the same,” Domingo said on a Dec. 12 letter to PhilWeb.