PACIFIC ONLINE Systems Corp. (LOTO) said it’s unwinding its investment in HHR Philippines, Inc. (HHRPI) after the national government adopted a firm policy against licensing online betting platforms.
Pacific Online, a publicly listed company engaged in providing lottery systems and related technology services, said the move was in response to the federal government’s policy direction.
“Due to the firm policy adopted by the national government against the licensing of online betting platforms, please be advised that the Company and HHRPI have mutually agreed to revisit their investment arrangement and unwind the identical, with a non-public third party investor agreeing to assume the rights and obligations of the Company from its HHRPI investment,” Pacific Online said in a disclosure on Thursday.
HHRPI operates Buenas PH, a licensed e-casino platform.
Pacific Online said it expects to stop being a shareholder of record in HHRPI upon securing the crucial regulatory clearances.
“As HHRPI remains to be in early operation stage, the unwinding of LOTO’s investment in the corporate is just not expected to have any significant impact on LOTO’s financials,” it said. — A.G.C. Magno