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Tough global economic climate postpones LRWC sports betting deal

Online gambling operator AsianLogic has shelved its P115-million investment in Philippes listed Leisure & Resorts World Corp. (LRWC), citing weak market conditions, reports Business Week.
 
The suspension has resulted in the recall of a LRWC resolution requiring the issuance of 37 million shares priced at P3.10 per share from the unissued portion of its authorised capital stock to AsianLogic.  
 
“This recall of the resolution was in accommodation of AsianLogic’s preference to defer indefinitely the subscription to said shares in view of the worldwide adverse market conditions," said a LWRC spokesman. "The corporation and AsianLogic have agreed to revisit this planned subscription to such time when the market conditions are more stable."
 
The company had earlier projected to gain net revenues of $18.3 million for the first three years of sports betting operations with AsianLogic.
 
LRWC president Alfredo Abelardo Benitez said Asian Logic projections had suggested that the first year of operations would deliver $5 million, to be followed by $6 million on the second year and $7.2 million on the third year.
 
“This is a good start to enter the regional market by having a strategic partner who is a leader in this kind of business,” Benitez said in an interview when the deal was still in progress.
 
The partnership would have allowed the two companies to penetrate the multibillion-peso gaming industry in the Asia-Pacific region. Based on an industry report, the region is seen to have the highest overall pprojected spending on gaming, notionally reaching $18.8 billion in 2011.
 
AsianLogic’s core management and advisory team is based in Hong Kong, while its interactive gambling operations are located in the Philippines.



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