Pacific Online drops online betting, E-Lotto plays
Pacific Online Systems Corp. is divesting from its 37.5-percent stake in HHR Philippines, Inc. (HHRPI) and unwinding its participation in the Philippine Charity Sweepstakes Office’s (PCSO) E-Lotto project amid a tougher regulatory regime.
In a disclosure on Thursday, the lottery equipment provider led by businessman Willy Ocier said the firm and electronic gaming platform software and service provider HHRPI had “mutually agreed to revisit their investment arrangement and unwind the same.” This effectively halted the previously announced transaction.
A private third-party investor will assume Pacific Online’s rights and obligations from the investment, the company added.
Once regulatory compliances are completed, Pacific Online will cease to be a shareholder of record in HHRPI.
Pacific Online signed an investment agreement with HHRPI on Jan. 29, 2025
Through that agreement, Pacific Online committed to subscribing to 81,000 common shares in HHRPI.
This represents a 37.5-percent stake valued at P150 million. The investment was structured to be settled in three tranches.
Pacific Online said the recent move is not expected to have any significant impact on its financials since HHRPI remains in its early stage of operations.
In a separate disclosure, Pacific Online also announced the discontinuance of its participation in PCSO’s E-Lotto project. The firm received a Notice of Award in June 2024, covering the procurement of a web-based application platform.
The company said controversies involving other online gaming variants, such as e-Sabong and Philippine Offshore Gaming Operations, prompted the government to adopt a policy against the continuation of licensing all forms of online betting platforms.
With the policy reversal, the implementation of PCSO’s E-Lotto was placed on “prolonged suspended animation.” This led the board to the decision to withdraw the corporation’s involvement in the project. —EMMANUEL JOHN B. ABRIS
