PhilWeb Corp. chairman Roberto Ongpin quit his post to save the company, after listed gaming technology company became the focus of President Rodrigo Duterte’s anti-oligarch and anti-online gambling pronouncements.
“The main reason why Mr. Ongpin resigned from PhilWeb is to save the company. He recognized that if he stayed on, PhilWeb’s e-Games outlets could be shut down, which would lead to the loss of its business and eventual closure, affecting more than 5,000 employees,” said PhilWeb president Dennis Valdes in a statement released through a public rfelations firm.
PhilWeb, a listed company with the Philippine Stock Exchange, has been a service provider to Philippine Amusement and Gaming Corp. in the management of the e-games network for the past 14 years.
PhilWeb remitted over P14 billion to Pagcor during the 14-year period. PhilWeb in 2015 remitted over P2.1 billion to the gaming regulator and paid over P280 million in corporate income tax, value added tax and other taxes.
Valdez took exception to the perception that the company was into online gaming. “Pagcor e-Games is not online gaming,” he said, adding it could not be accessed by an office or home computer.
“It is a private, members-only network of clubs where players need to be physically present in order to play. Access to these clubs is strictly controlled such that it is only open to members who are over 21 years old and are financially capable of gaming,” he said.
Each Pagcor e-Games site conforms to location restrictions put forth by both Pagocr and the local government unit in which it is based. To date, there are 286 Pagcor e-Games locations nationwide, with over 5,000 employees.
Valdes said if PhilWeb’s contract with Pagcor was canceled or not renewed, the company’s license to operate would immediately stop, leading to the shutdown of its operations as well as of the 286 e-Games outlets.
Each outlet is operated by a Pagcor licensee, who is generally well connected in the local community.
“This would also mean that Pagcor would not receive the average P6 million per day that is their share of e-Games revenue, said Valdes. This revenue, estimated at over P2.1 billion annually, comes at no cost to PAGCOR, he stressed. This same revenue is used by PAGCOR to fund its pro-poor programs, especially the new programs of the current administration.