Philippine regulators pull the plug on PhilWeb

August 08, 2016 5:00 PM
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PhilWeb Corp., which operates and manages electronic casinos owned by the Philippine gaming regulator, saw its shares tumble to a 22-month low after the agency said it won’t renew the company’s contract.

“We won’t cancel it but we won’t renew it,” Philippine Amusement and Gaming Corp. Chief Executive Officer Andrea Domingo said in a mobile-phone message to Bloomberg on Monday. The contract expires Aug. 10, she said.

The company’s shares fell as much as 44 percent intraday, poised for the lowest close since October 2014. The Philippine Stock Exchange Index rose 0.1 percent. PhilWeb President Dennis Valdes didn’t immediately respond to a call and mobile-phone message seeking comments.

PhilWeb shares have plunged more than 70 percent since the start of July, after Philippine President Rodrigo Duterte ordered a stop to online gambling at his first cabinet meeting. 

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.