PhilWeb again denies being an online gaming firm

On the heels of President Rodrigo Duterte's latest directive against online gaming, listed gaming technology provider PhilWeb Corp. again clarified it does not engage in online gaming.

"PhilWeb is a software provider to PAGCOR (Philippine Amusement and Gaming Corp.) for its network of e-Games outlets. PhilWeb does not engage in online gaming," PhilWeb said in a disclosure to the Philippine Stock Exchange on Friday.

Duterte on Thursday said he is ordering closure of all forms of online gaming in the country arguing that the government does not benefit from it.  

The President had previously vowed to stop the proliferation of online gambling during his administration's first Cabinet meeting on June 30.

With this, PhilWeb said its service could not be considered as online gambling as its software was not accessible via office or home computers.  

The gaming technology reiterated this in a filling to the local bourse.

"PhilWeb’s software cannot be played from homes or offices. Each e-Games outlet is owned by an individual entrepreneur whose gaming license is issued by PAGCOR directly to them," it said.

It also argued that each e-Games outlet pays all taxes, "as does PhilWeb itself."

PhilWeb President Dennis Valdes earlier emphasized that closing down PhilWeb would mean billions of pesos in foregone revenue for the government.

It contributed P2.1 billion to PAGCOR in 2015 and over P14 billion in the past 14 years.

Following the President's earlier directive, PAGCOR decided not to renew the licensing deal with PhilWeb despite last-minute talks.  

Duterte also tagged Roberto Ongpin, former chairman of PhilWeb, as among the oligarchs who must be weeded out in the government.

Ongpin has since sold controlling stake in the company.  

With Ongpin out of the picture, PhilWeb is hoping it can get a new licensing deal with PAGCOR, however, the President's latest order to shut online gaming puts the company's license renewal is in danger. 

In a separate disclosure, Leisure and Resorts World Corp., an online gaming operator, said that "except for the television reports and online and newspaper articles relating to the pronouncement made by President Rodrigo Duterte, the company has no other information on the said pronouncement or order." — VVP, GMA News