PhilWeb fails to extend PAGCOR contract during last-minute talks

Beleaguered PhilWeb Corporation failed to extend a licensing deal with the Philippine Amusement and Gaming Corporation (PAGCOR) despite last-minute talks with the industry regulator late Tuesday.

In an interview with GMA News Online, PhilWeb President Dennis Valdes said the company is not closing down but will wind down its services to PAGCOR e-Games outlets.

The contract with PAGCOR ends on Wednesday, August 10.

"We are a service provider to PAGCOR for their e-Games network ... It is very clear that the contract is expiring," Valdes said.

"The board of directors will have to asses new revenue streams," he added.

In a separate text message, PAGCOR confirmed it will no longer renew the license agreement with PhilWeb.

"PhilWeb contract will expire tomorrow, August 10, 2016. PAGCOR will not renew/extend the contract,” PAGCOR said late Tuesday after a meeting with PhilWeb officials.

Last month, the company was able to secure an extension—until August 10—of its contract that was due to expire on July 11.

PhilWeb shares traded at a low of P3.02 apiece Tuesday before it closed at P4.25, down P0.88 or 17.15 percent from P5.13 at the close of trading on Monday.

Since June 30, when the President vowed to stop the proliferation of online gambling, PhilWeb shares plunged by P20.15 or 82.58 percent from P24.4 apiece.

A downside again

"Investors are worried because the gaming license will not be renewed. I think there is going to be a downside again to the stock if they resume trading again," Luis Limlingan, business development head at Regina Capital Development Corp., said in another interview with GMA News Online.

On Monday, PhilWeb sought an audience with the gaming regulator insisting it was not an online gambling company but a software provider for PAGCOR's network of e-Games outlets.

Philweb informed PAGCOR the company is winding down its operations in relation to the e-Games contract, the regulator said Tuesday.

Since 2003, PhilWeb has been providing PAGCOR's e-Games or Internet cafes with software exclusively dedicated to casino games.

On August 4, PhilWeb Chairman Roberto Ongpin resigned from his position after having been tagged by President Rodrigo Duterte as among the oligarchs embedded in government.

Valdes clarified on Sunday that Ongpin resigned to save the company. — VDS, GMA News