Playtech Granted RNG Gaming Software Monopoly in Philippines
Playtech saw its position in the Asian gray and black markets improve after the Philippine Amusement and Gaming Corporation (PAGCOR), the gambling regulator for the Philippines, granted the Isle of Mann-based company a gaming software monopoly.
Details of Playtech Monopoly in the Philippines
In late September, a memorandum was released revealing that the PAGCOR board of directors had approved Montford Inc. �C the games distribution wing of Playtech �C as the first and only ��Gaming Software Provider�� for licenses issued by the Philippine Offshore Gaming Operator (POGO).
Additionally, other POGO licensees, which comprise the majority of Asian-facing online gambling operators, were ordered to immediately stop using other gaming software that offers random number generator (RNG)-based games.
The memo stated that any licensee ��found to be using games developed by an unauthorized service provider, or those who engage the services of a gaming software provider not accredited by PAGCOR, shall be imposed the corresponding demerits and administrative penalties.��
Immediate infractions would be penalized 20 demerit points under PAGCOR��s Offshore Gaming Regulatory Manual. Continued violations could result in loss of offshore gaming licenses. As such, Playtech is seemingly the beneficiary of a monopoly as PAGCOR has yet to reveal whether or not they will authorize other RNG game providers.
Playtech Background
This is just the latest chapter in Playtech��s story in the Asian market. Back in 2016, the company experienced double-digit revenue gains to �708.6 million �C a rise of 12 percent �C with the casino and mobile verticals driving much of it. That same year, Playtech acquired companies BGT, Quickspin, ECM Systems, and Consolidated Financial Holdings.
At the time, 42 percent of Playtech��s gaming revenue came from Asian countries, with Philippines-based operator revenue accounting for �257 million, up 29 percent and representing 40 percent of 2016 revenue.
��We have taken steps to further support our partners in the region and we will continue to work to preserve our position in the face of an increasingly competitive environment.��
However, this past summer, Playtech shares dropped 23 percent after the company issued its second profit warning in a year. The company cited an ��increasingly competitive backdrop�� in the Asian market, especially in China. In November 2017, Playtech issued its first warning after Malaysia��s crackdown on gambling syndicates, which resulted in the company losing access to the Malaysian market, an estimated hit of �70 million.
��Clearly the recent trading performance in Asia is disappointing,�� CEO Mor Weizer said at the time. ��We have taken steps to further support our partners in the region and we will continue to work to preserve our position in the face of an increasingly competitive environment.��
The latest news out of the Philippines is apparently a step in that direction. It��s also not the first monopoly obtained by Playtech, which was chosen as eKasyno��s exclusive casino partner in Poland.
Playtech stock currently sits a $6.15 per share, down from a yearly high of $11.92 back in April.
