Pacific Online Systems Corp. is reassessing its position in the Philippine online gaming sector, citing regulatory headwinds that may impact future investment.
Pacific Online Systems Corp. said it is reviewing its P150 million investment in the online gaming space due to growing regulatory uncertainty, as the government threatens to ban Philippine inland gaming operators (PIGO), which cater to domestic players.
Chairman Willy N. Ocier said the company had acquired a 37.5 percent stake in HHR Philippines Inc., operator of the Buenas e-casino brand, to test the waters in the digital gaming arena. However, given unclear policy direction, he confirmed having no plans to expand Pacific Online’s holdings in HHR.
“We’re not aggressive on it. We wanted to get our feet wet, just to get the feel of it,” Ocier said, adding that the company cannot control regulatory developments, which remain a key risk.
The PIGO model is under scrutiny over concerns it may mirror the issues faced by Philippine offshore gaming operators (POGOs) previously linked to illicit activities. The regulatory climate has tempered Pacific Online’s expansion ambitions, despite the broader industry trend of legacy casinos entering the online space.
Rival Bloomberry Resorts Corp., led by tycoon Enrique K. Razon Jr., is preparing to launch its online gambling operations by end-May or early June to complement its Solaire Resort and Casino operations.
Ocier noted that Pacific Online has no intention of competing with market leader DigiPlus Interactive Corp., citing the capital intensity and DigiPlus’s first-mover advantage. “Who can compete with DigiPlus? They’re three years ahead,” said Ocier, who also sits on DigiPlus’s board.
He further noted that only major integrated resort operators like City of Dreams Manila have the scale to compete effectively in the online space. He said Pacific Online lacks the expertise and will not pursue such a strategy.
Despite its initial capital infusion intended to support HHR’s expansion, Pacific Online remains cautious, with no definitive plans for its next steps in the online segment.
