Pagcor rejects PhilWeb plan to revive text lotto

MANILA, Philippines – The state-run Philippine Amusement and Gaming Corp. (Pagcor) has thumbed down the proposal of PhilWeb Corp. to launch a new SMS-based lottery business.

In a Sept. 20 letter to PhilWeb, Pagcor said it is turning down the proposal due to the Duterte administration’s policy to strictly regulate the proliferation of gaming in the country.

PhilWeb is a listed gaming technology company majority owned by businessman and former trade minister Roberto Ongpin.

It operated electronic games or the eGames network until its license expired on Aug. 10.

Pagcor did not renew its license, citing the government’s stand against online gaming.

The company then revived the so-called Pagcor Text Bonanza, which it proposed several years ago to the gaming regulator but was not acted upon.

Pagcor Text Bonanza is an SMS-based scheme that would supplement the current lotto betting business being run by the Philippine Charity Sweepstakes Office (PCSO).

Under the proposal, lotto bettors can text their lottery numbers via mobile phone firm Smart Communications to servers running on a proprietary software developed by PhilWeb.

The bettors will then receive a confirmatory message, which effectively becomes their ticket.

This has the potential to churn in revenues of P50 to P100 billion, to be shared among Pagcor, PhilWeb and Smart.

However, Pagcor has denied the proposal.

“We regret to inform you that after review of the recommendation of the pertinent departments and deliberations of the members of the board of directors, the board has denied the proposal of PhilWeb to introduce a text-based betting system called Pagcor Text Bonanza at this time considering that the current policy of the government is to strictly regulate and ensure non-proliferation of gaming avenues which are accessible to lower income brackets of society,” said Pagcor chairman and chief executive officer Andrea Domingo.

At the same time, PhilWeb continues to negotiate with Pagcor for the renewal of its license to operate eGames, which are internet cafes exclusively dedicated to casino games.

There were 287 operating e-Games cafes across the country, majority of which are owned and operated by 131 independent entrepreneurs.

Ongpin, whom Duterte singled out as an oligarch, has decided to sell his 53.76 percent stake in PhilWeb on hopes Pagcor would renew the company’s license.