Lotto operator Pacific Online Systems Corp. has decided to unwind its planned acquisition of a 37.5-percent stake in electronic gaming licensee HHR Philippines Inc., citing the government’s firm policy against licensing online betting platforms.
The listed firm said in a disclosure to the stock exchange that both parties mutually agreed to revisit and unwind their investment arrangement, with a private third-party investor set to assume the rights and obligations of Pacific Online in the deal.
“With this unwinding, the company will cease to be a shareholder of record of HHRPI as soon as certain regulatory compliances are complied with,” Pacific Online said.
The company announced in January 2024 that it would acquire the stake in HHR Philippines for P150 million to expand its online gaming presence. Under that agreement, Pacific Online subscribed to 81,000 common shares in the firm.
Pacific Online originally intended the investment to expand its footprint in the online gaming business through a firm licensed by the Philippine Amusement and Gaming Corp. The capital infusion was also meant to fund expansion activities for HHR Philippines, which provides software and professional services for land-based and online gaming operators.
The company said the unwinding is not expected to have a significant impact on its financial position, noting that HHR Philippines remains in its early stages of operations.
The move comes after the government tightened regulations on online gaming in 2025 to protect consumers. The Bangko Sentral ng Pilipinas also ordered the delinking of licensed online gaming sites from e-wallet providers during that period.
Pacific Online also reported it would discontinue its participation in the Philippine Charity Sweepstakes Office e-lotto project. While the company was awarded the procurement of a web-based application platform for the project in June 2024, shifting national policy has stalled the initiative.
Following controversies involving other online gaming variants such as e-sabong and Philippine Offshore Gaming Operations, the national government adopted a firm policy against the continuation of licensing for all forms of online betting platforms.
Pacific Online said it would discontinue the project and refocus its efforts and resources on other available and more feasible opportunities.
