Pagcor shuts LRWC e-gaming sites

Leisure & Resorts World Corporation (LRWC) reported that it stands to forego R533 million in revenues after operations of two of its wholly-owned gaming subsidiaries were stopped by the Philippine Amusement and Gaming Corporation (Pagcor).

In a disclosure to the Philippine Stock Exchange, LRWC said AB Leisure Exponent, Inc. (ABLE) received notices that the Pagcor Board of Directors has issued an order to ABLE and its subsidiaries to immediately cease the operations of its Electronic Bingo games at its 36 sites.

This is due to non-compliance with the distance restriction guidelines under Section 2 of Regulation 3 of the Gaming Site Regulatory Manual (GSRM) for Bingo Games version 2.0.

Subsidiary Total Gamezone Xtreme, Inc. (TGXI) also received notices from Pagcor to immediately cease the operations of its Electronic Games at its 17 sites due to non-compliance with the distance restriction guidelines for Electronic Games version 2.0.

The firm informed the PSE that revenues and net income foregone up to the end of 2016 for the affected sites are estimated to be R477 million and R56.2 million, respectively, based on historical first 7 months of 2016.

“These numbers approximate 5 percent of total consolidated 2015 revenues and net income of the LRWC Group,” LRWC said adding that the related operating assets amount to R190 million as of July 31, 2016.

LRWC said it will send a letter of reconsideration to Pagcor not later than Tuesday, September 13, 2016. (JAL)