Businessman Roberto Ongpin stepped down as Philweb’s chairman on Thursday, as Mr Duterte singled out Mr Ongpin as an example of an “oligarch” he would bring down during his term.
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In the press release, PhilWeb’s Mr Valdes said “e-Games is not online gaming”. PhilWeb on Sunday said it may need to shut down operations including 286 so-called e-games outlets if its contract with the government gambling regulator is canceled or not renewed.
PhilWeb said Ongpin is now focusing on his other projects, particularly in the real estate sector.
Duterte has previously vowed to fight corruption but his main focus has been a war on crime that has seen the killing of hundreds of suspected drug dealers since he was elected on May 9.
PhilWeb operates e-gaming outlets across the country, 286 in total, and has paid Pagcor PHP14 billion, $297.9 million Dollars, to date.
For the past 14 years, PhilWeb has been listed on the Philippine Stock Exchange.
His daughter Anna Bettina Ongpin also resigned as PhilWeb’s vice chairman and director.
The development sent PhilWeb shares plunging by P3.88 or 43.06% toward P5.13 apiece, the lowest price they have registered on the Philippine Stock Exchange (PSE) since finishing at P5.12 on October 16, 2014. PhilWeb’s electronic games can’t be accessed by office or home computers and its members-only players must be physically present at the cafes to play, it said.
The listed gaming technology company additionally said that it has remitted over PHP14 billion (US$298.2 million) to Pagcor since 2003. “Access to these clubs is strictly controlled such that it is only open to members who are over 21 years old and are financially capable of gaming”.
The losses to Pagcor was estimated at P6 million per day or P2.1 billion yearly, which was the government’s share from PhilWeb’s e-Games revenues previous year, Valdes said.
In a statement issued over the weekend, PhilWeb floated the possibility of closing down the business that employs more than 5,000 and receives investments from 1,500 stockholders if the government stops renewing its license.
These stockholders include foreign funds, Valdes said.
“There are enormous long-term economic and financial considerations that Mr. Ongpin took into consideration when he resigned from PhilWeb, which the government should also look at closely at it decides on the company’s fate”, Valdes concluded. “The sudden closure of a publicly listed company may cause serious concerns to foreign investors”, Valdes pointed out.
According to Valdes, the government would also lose out with PhilWeb’s possible closure.
“In 2015, PhilWeb remitted over PHP2.1 billion to the gaming regulator and also paid over PHP280 million in corporate income tax, value-added tax and other taxes”, the firm added.
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In response to the government’s clampdown, PhilWeb Monday said it has written Pagcor’s Domingo requesting for a meeting to clarify the situation.
