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PhilWeb’s 2016 Income Falls Dramatically
- April 17, 2017 By Oliver Young -
The Philippines have been one of the top gambling destinations on the Far East for quite a while. Many online gambling licences were issued by the country’s licencing authorities and many operators had their branches and offices in the country. Casino gaming developers and technology providers were also established.
Things were going pretty well for the casino industry in the country and casino profits recorded a large boost in 2014. It seemed that things would only get better and many leading operators considered entering the Philippines. In 2016 a new licencing jurisdiction was established in Casiguran, in addition to PAGCOR (Philippines Amusement and Gaming Corporation) which is the state-wide authority and Cagayan which has the authority to issue licences to foreign operators.
Duterte’s ‘War’ on Online Gambling Takes Its Toll
Things have changed as soon as Rodrigo Duterte was elected President of the Philippines. Duterte didn’t not hide the fact that he is opposed to gambling, especially online gambling and soon after he took power, he pledged to stop online gambling. A lot of people in the industry were worried, as to what will the future hold for the casino industry in the country.
Later, the President softened his attitude, some of the PAGCOR issued licences were reissued, but the industry has suffered damage. Latest reports show that the income of PhilWeb, a casino gaming provider that is based in the Philippines, has plunged.
The company submitted a document to the Stock Exchange which shows that the yearly income for 2016 was decreased by staggering 134.2%. The main reason for this drop is the fact that the company’s licence expired in 2016 and it was not renewed. This provider operate4s under the Intellectual Property Licence and Management Agreement.
The company’s licence expired in July 2016 and that coincided with the President’s promise to bring online gambling to an end. The company’s licence was extended by just 1 month, until August and not for the whole year.
PhilWeb Still Hopes for Licence Renewal
The figures show that the net income of the company was US $17.5 million in 2015 and it dropped to just $6 million in 2016. The revenue also dropped from a total of $32.3 million in 2015 to a mere $20.40 million in 2016. That decrease is also reflected in the figures for the company’s earnings before tax. These earnings dropped by more than 50%.
The company released a statement in which it is stated that the non-renewal of the licence was the main reason for the negative financial results, adding that this uncertainty might hurt the company’s operations even further. The management of the company is considering various solutions that might improve the financial situation and consolidate the organisation.
However, it is noted that a renewal of the licence will be the most viable option for the company’s financial wellbeing. The company’s President said that everyone at PhilWeb still believe that PAGCOR will renew their licence and thus enable PhilWeb to continue with its operations as usual.
No decision has been reached by PAGCOR, and we are yet to see whether the online gaming operations will continue in the future, or whether they’ll be abolished forever.