Online gambling chaos in the Philippines expensive for Philweb

Philippines e-Gaming group Philweb illustrated the cost of presidential interference in local business when it posted its FY-2016 results Monday, reporting a 134.2 percent decline in net income to just US$6 million.

Our readers will recall that Philippines president Rodrigo Duterte created havoc in the industry with his anti-online gambling rhetoric last year. Although his stance has moderated significantly in recent months the damage was done as Philweb was refused renewals on its e-gaming licensing and is now struggling to recover, having made new applications.

In 2016 Philweb’s revenues fell almost 39 percent to US$20.39 million, whilst EBITDA declined 51.7 percent to PHP580.4 million (US$11.7 million).

The company’s report took on a pessimistic tone, warning that the existence of material uncertainty in its environment could create doubt regarding its ability to continue as a viable business, although management is making strenuous efforts to address the problems surrounding the group and meet its obligations.

Much now depends on Philweb being granted new online gambling licensing by Pagcor.