Pagcor won't renew PhilWeb contract | ABS-CBN

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Pagcor won't renew PhilWeb contract

Pagcor won't renew PhilWeb contract

Vivienne Gulla and Liza Reyes,

ABS-CBN News

 | 

Updated Aug 09, 2016 05:34 PM PHT

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MANILA - The Philippine Amusement and Gaming Corp. (Pagcor) said Tuesday it would not renew its contract with PhilWeb Corp. to operate its online casinos.

PhilWeb is controlled by tycoon Roberto Ongpin, who resigned as chairman last week after President Rodrigo Duterte singled him out in a speech where he vowed to “destroy oligarchs.”

Shares of PhilWeb plunged by as much as 41 percent, the lowest since March 2009, before closing 17.15 percent lower to 4.25 on Tuesday before the regulator’s announcement.

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“The Philweb contract will expire tomorrow (Wednesday), August 10, 2016. Pagcor will not renew/extend the contract,” Pagcor Chairman Andrea Domingo told ABS-CBN News.

PhilWeb president Dennis Valdes said Pagcor rejected the company's last-minute appeal to renew its license and a "winding down" of operations would start on Wednesday.

Valdes said the company "will try to avoid" cutting its 5,000-strong workforce, adding, "We have to find a way to continue to do business and we will."

"But as we wind down the operations over the next few days, we will have to assess as a board exactly what that means for our operations in the short term," he said.

PhilWeb's license had been renewed on a per-month basis since President Rorigo Duterte declared in June that online gambling must stop.

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