The Philippine Amusement and Gaming Corporation (PAGCOR) is the government-owned and controlled corporation established to regulate all games of chance in the Philippines. It was created in 1976 to oversee the operation of gaming casinos, to generate funds for the government's developmental projects, and to help curb illegal gambling.
PAGCOR is a vital arm of the government in nation building. The state-owned firm is the third biggest source of government funds with annual revenue of 22 Billion Pesos. PAGCOR is proof that casinos and legalized gaming can be a valuable source of government funding and an effective engine for national development. In its endeavor to generate more funds for the government's pressing concerns, PAGCOR has ventured beyond casino management. To meet the challenges of the new millennium, the gaming corporation is constantly looking for ways to improve its gaming products and maximizing the efficiency of its gaming operations.
Philippine Gaming Market
Sports betting is, to a vast population of Filipinos, a way of life from cockfighting to horseracing and basketball. Betting on number combination games such as lotteries and basketball "ending" offered by illegal bookies, has become part of millions of Filipinos' daily routine. The gaming market in the Philippines is estimated to be over 100 Billion Pesos per year. Illegal gaming accounts for half of the country's gaming industry revenues.
Internet Gaming Market
The Internet gaming global market is estimated to be US$10 Billion in 2002 and is predicted to reach US$ 14.5 Billion in year 2006. Internet Sports Betting and Internet Casino dominates most of the revenues. Although U.S. now accounts for half of industry revenues, the gaming market is changing and the biggest area of growth is in places like Europe and Asia.
PAGCOR aims to go global and is keen on gaining a share of the Internet gaming revenue. Internet gaming will allow PAGCOR to reach out to both local and foreign gaming enthusiasts with less investment cost.
About PhilWeb
Capitalizing on its Internet technology experience, PhilWeb in early 2003 made a deliberate decision to focus on Internet Gaming. It established partner relationship with leading software providers in addition to establishing its own gaming software capability. On the basis of this expertise, PhilWeb was successful in concluding a contract with PAGCOR, whereby PhilWeb became PAGCOR's overall service provider for Internet Gaming technology. To date, PhilWeb has concluded 2 Internet Gaming agreements with PAGCOR, as follows:
1. License for Internet Sports Betting
Acknowledging the Filipino's yearning for sports and gaming as well as the continuing popularity of local sports betting, PAGCOR, in partnership with PhilWeb Corporation, designed and deployed a new and innovative way to utilize Internet technology in fueling the Filipino's passion for sports - Internet Sports Betting. PAGCOR aims to compete head on with illegal bookies and migrate most, if not all, of the illegal gaming revenues into additional source of income for the government.
Recognizing PhilWeb's extensive knowledge in Internet technology, software development expertise and its nationwide marketing distribution network, PAGCOR signed a Memorandum of Agreement with PhilWeb on November 28, 2002, engaging the latter as its technology service provider and marketing consultant for Internet Sports Betting. Subsequently, PhilWeb and PAGCOR likewise entered into several Supplemental Agreements to cover the expansion programs of PAGCOR on Internet Sports Betting.
Under the MOA and Supplemental Agreements on Internet Sports Betting, PAGCOR vested PhilWeb with the following rights and responsibilities:
Comprehensive consultancy in Internet Sports Betting
· Introduce new Internet Sports Betting events and betting formats.
· Provide Internet betting platforms for PAGCOR's various Sports Betting products.
· Supply new software/ hardware technology.
Marketing and distribution assistance
· Marketing & promotion of Internet Sports Betting.
· Appointment of Internet Sports Betting operators nationwide.
· Distribution of prepaid betting cards nationwide.
2. PAGCOR License for PAGCOR e-Games Cafes
PAGCOR has decided to offer casino games outside the land-based casinos via PAGCOR e-Games Cafes. Compared with the land-based counterpart, PAGCOR e-Games Online require less investment because of their low overhead as well as operating and marketing costs. Also, PAGCOR e-Games Online offers gaming enthusiasts the opportunity to play casino games in the privacy and comfort of their homes at any time of the day and at their own pace.
As an additional feature, a prepaid card system will be incorporated in PAGCOR e-Games Online betting platform to avoid credit card fraud and fast-track its nationwide distribution.
PhilWeb is partnering once more with PAGCOR to accelerate the market entry of the latter's e-Games Online products in the Philippines. With a management team rich with e-Games business expertise, PhilWeb expects to realize with PAGCOR the revenue potential of e-Games Online.
Currently, PAGCOR and PhilWeb are pursuing for the expansion of their Internet Gaming relationship to now include Internet Games. PhilWeb will provide its technology and marketing services to PAGCOR. These services shall include the following:
Technology provider
· Supply e-Games Betting Platform complete with prepaid card system
· Development of popular and exciting Internet games.
· Introduce touch screen betting terminals
Marketing and distribution partner
· Marketing and promotion of PAGCOR e-Games
· Development of a nationwide network of PAGCOR e-Games Cafes
· Appointment of PAGCOR e-Games prepaid betting card dealers nationwide
