Gaming stocks soar as Duterte backtracks on online gaming

MANILA, Philippines - Gaming stocks soared yesterday after President Duterte said he might allow online gaming to resume under certain conditions.

This was in stark contrast to his earlier pronouncements he would put an end to online gaming. 

Last Wednesday night, President Duterte said he would restore online gaming provided that taxes are correctly collected and that the gaming outlets were far from schools or the church.

Shares of e-Games operator PhilWeb Corp. jumped 50 percent to P8.10 apiece yesterday while e-bingo operator Leisure & Resorts World Corp. surged 49.86 percent to P5.17 each share.

PhilWeb’s license as a supplier of software to the e-Games network, expired on Aug. 10 as the Philippine Amusement and Gaming Corp. refused to renew the company’s license.

However, with President Duterte’s latest pronouncements, PhilWeb said it might again take a look at the online gaming policy.

PhilWeb president Dennis Valdes said the company could reapply for a permit to operate electronic casinos.

It submitted a new business plan to Pagcor last Wednesday, proposing a mobile-phone based lottery business that is seen supplementing the lotto business of the Philippine Charity Sweepstakes Office.

Gaming shares have plummeted since the end of June after President Duterte ordered a stop to online gaming.

When asked to explain the recent surge in their share prices, both PhilWeb and LRWC said they were not aware of any material development that may have caused the price spike.

“The market may have been reacting to the current pronouncement of President Duterte with regard to the status of the gaming industry particularly on online gambling.

Rest assured that if there would be any information which would trigger the unusual price movement we shall immediately disclose the matter to the Philippine Stock Exchange as required under its policy of full, timely and accurate disclosure of all material information effecting the value of our securities,” LRWC said.