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Leisure and Resorts Impacted By Philippines Gambling Bans
SPECULATION IMPACTS LEISURE AND RESORTS SHARE PRICE
Philippines online gambling events could be dangerous for company.
The dismantling of Philweb following Philippines President Rodrigo Dutertes initiative against online gambling has triggered speculation that another company involved in the sector, Leisure and Resorts, could be endangered by the purge, according to a report in the business news publication Bloomberg.
There are indications that this possibility is of concern to the investment community; the announcement this week by Pagcor chief Andrea Domingo that it will no longer renew e-gaming licenses caused Leisure and Resorts World Corp. shares to tank 20 percent Friday in the worse day the stock has seen in eight years.
The largest operator of electronic number games in the Philippines (it has a local bingo market share estimated at over 35 percent), LRWC is thought to be a likely target following the demise of Philweb.
Observers point out that any negative action against the company could have wider implications...LRWC has a 69.68 percent stake in First Cagayan Leisure and Resorts Corp., which falls under the Cagayan Economic Zone Authority and issues licenses to a number of Asian-focused online gambling sites.
The many warnings that continued assaults on the sector could cause significant job losses and reductions in money flowing to government coffers appear to have fallen on deaf ears thus far, with little if any official response.
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