The stock prices of two listed companies that provide technology solutions to state-run Philippine Charity Sweepstakes Office fell Monday after President Rodrigo Duterte ordered the agency to stop all lottery and gaming operations.
Berjaya Philippines Inc., which has 39.99-percent equity in lotto equipment provider Philippine Gaming Management Corp., saw its stock drop 6.5 percent to P2.44, while the share price of Pacific Online Systems Corp. declined 13.6 percent to P2.53.
PGMC and POSC said in separate disclosures to the stock exchange they were hoping the government would soon lift the suspension of all gaming activities of PCSO while insisting that their transactions with the government agency were above-board.
POSC said the negative impact of the suspension on the company’s operations was “inestimable” at this time.
The company said, however, that this could have a negative impact on PSCO’s ability to raise funds for its charity works and on the lives of many people whose livelihood were connected, directly or indirectly, with PCSO’s gaming operations.
“The corporation can only hope that the suspension will be lifted sooner rather than later. Further, the corporation is fully confident that, as a listed company, its transactions with PCSO on both lotto and Keno were entered into in accordance with the law, and are above-board and fair,” POSC said.
POSC is the lessor of the online lottery system being used by PCSO for its lotto operations in the Visayas and Mindanao. Its subsidiary Total Gaming Technologies Inc. is the equipment lessor for PCSO’s Keno game nationwide.
Meanwhile, Berjaya Philippines said the suspension of all PCSO gaming activities would only have an effect on the company if the suspension was extended.
“PGMC hopes that the suspension will not be for an extended period of time for the sake of its more than 74 employees,” Berjaya said.
PGMC said that its dealings with PCSO had always been above board. “PGMC does not hold revenue for PCSO, does not distribute it, is not involved in operations, but is merely the lessor of equipment in the Luzon area,” the company said.