COMPANIES leasing lottery equipment to the Philippine Charity Sweepstakes Office (PCSO) are taking steps to renew their agreements with the agency, after the administration’s order allowing the resumption of lotto operations.
In a disclosure to the stock exchange Wednesday, Pacific Online Systems Corp. (LOTO) said it has an “in principle” deal with the PCSO to renew equipment leases.
LOTO supplies lottery systems equipment to the PCSO in the Visayas and Mindanao regions, as well as the agency’s Keno operations across the country.
The company’s ELA with the PCSO expired yesterday, July 31.
“Please be advised that we have had an agreement in principle on the terms of a further renewal thereof pending the completion of PCSO’s process to procure, by public bidding, a new online lottery system,” the company said.
“Until a formal agreement has been entered into, however, we will be unable to make further announcements thereon.”
Philippine Gaming Management Corp. (PGMC) said it has also filed a claim with the PCSO that it did not fail the bidding for its equipment leases. PGMC leases lottery equipment for the PCSO’s Luzon operations.
PGMC is an affiliate of listed firm Berjaya Philippines, Inc., which holds a 39.99% stake.
Berjaya previously had a 99.99% equity stake in PGMC, but has decided to gradually trim its ownership in the firm to 79.99%, then to 39.99% earlier this month.
Shares in LOTO and Berjaya recovered after President Rodrigo R. Duterte lifted the ban on lotto operations Tuesday night, four days after he ordered the shutdown of all PCSO’s gaming operations.
LOTO shares soared 11.15% or 29 centavos to close at P2.89 each, while shares in Berjaya jumped 4.20% or 10 centavos to finish at P2.48 apiece.
While lotto operations may resume, the president retained the ban on other PCSO games and franchises such as Small Town Lottery, Keno and Peryahan ng Bayan pending the conclusion of an investigation into allegations of illegal and corrupt practices. — Arra B. Francia
