PACIFIC Online Systems Corp. is discontinuing its involvement in the Philippine Charity Sweepstakes Office’s (PCSO) E-Lotto project and divesting its stake in HHR Philippines, Inc. (HHRPI) amid the government’s firm stance against online betting platforms.
In disclosures on Thursday, the listed gaming technology firm said its board had approved the exit from the E-Lotto project given the national government policy prohibiting the continued licensing of online betting operations.
Pacific Online in June 2024 received a notice of award from the PCSO for the procurement of a web-based application platform intended for the E-Lotto project.
The company noted that following controversies surrounding other online gaming variants such as e-Sabong and Philippine offshore gaming operators, the government changed its stance toward e-gaming and was now discouraging online betting platforms, which placed E-Lotto in a “prolonged suspended animation.”
Recognizing that the government’s position would “no longer be retracted,” the board decided to halt the company’s E-Lotto involvement and ordered that resources be redirected instead to “other available and more feasible opportunities.”
Pacific Online also disclosed that it was scrapping a planned investment in HHR Philippines, which it announced in January 2025.
“Because of the firm policy adopted by the national government against the licensing of online betting platforms, please be advised that the company and HHRPI have mutually agreed to revisit their investment arrangement and unwind the same, with a private third-party investor agreeing to assume the rights and obligations of the company from its HHRPI investment,” the disclosure read.
“With this unwinding, the company will cease to be a shareholder of record of HHRPI as soon as certain regulatory compliances are complied with,” it said.
With HHRPI still in its early operational stage, Pacific Online said the move was not expected to have a significant impact on its financials.
Pacific Online shares rose P0.04, or 2.38 percent, to close at P1.72 each on Thursday amid a 0.42-percent fall for the benchmark Philippine Stock Exchange index.
