PGMC says it is ready for text-lotto

MANILA, Philippines - Prime Gaming Management Corp. (PGMC), the sole lotto system provider for Luzon, said it is technically ready to operate mobile lottery, pointing out that a soft launch on the proposed betting system was successfully undertaken in December.

In an interview, PGMC president Paulino Soo said the company expects to launch text-based lottery in the second quarter this year or as soon as an agreement is signed among the Philippine Charity Sweepstakes Office, Wolfpac/Smart and PGMC.

On Aug. 6, 2009, the company received word from PCSO that the text betting project it presented in July was approved subject to finalization of the details. The formal PCSO board resolution was issued on the same date.

“We’re still awaiting the approval of the final draft. To launch text betting, formalities such as a signed tripartite MOA need to be signed and a permanent four-digit access code be assigned to PCSO. This, together with test work on the change in access code, can be completed in 30 days,” Soo said.

He pointed out that as early as June last year, PGMC, with its lottery software provider Lottery Totalizator System (ILTS) had held talks with Wolfpac, a wholly-owned unit of mobile phone giant Smart Communications, to launch text lotto betting. 

He explained that the legal entanglements between PCSO and listed technology provider Diversified Financial Network Inc. (DFNN) which started in 2005 held PGMC back from pursuing mobile lottery. On April 9, 2003, DFNN signed an agreement to lease to the PCSO the necessary hardware and software for its wireless and payment solutions but the government’s charity arm revoked the contract in 2005.

DFNN, however, informed the Philippine Stock Exchange yesterday that it obtained a 20-day temporary restraining order from the Quezon City Regional Trial Court, preventing PCSO from implementing mobile betting with PGMC, Pacific Online Systems Corp. (the exclusive lotto system provider in Visayas and Mindanao), and other possible entities.

The case was filed by DFNN as it sought arbitration to protect its interest.

Also, Given a potential of 50-75 million cellphone users in the country, Philweb Corp., led by former Trade and Industry Minister Roberto V. Ongpin, is hoping to ride on the success of lottery. Through newly-formed unit Philweb Mobile Lottery Corp., the Ongpin-led group has put forward an offer designed to reach more bettors in the country.

While he does not see text-lotto to account for a large chunk of total lotto sales, Soo said the company is ready to fight for its right. “We don’t see this as a big money maker. This is more like a turf issue and we’re definitely prepared to defend our turf. We have an exclusive contract with the PCSO,” he said as he responded to reports that Philweb was seeking a license to operate text-lotto nationwide.

While some people might prefer to play lottery on a mobile device due to the ubiquity and the personal nature of the medium, Soo emphasized that having traditional lottery terminals is still very necessary. PGMC has over 3,000 lotto terminals in Luzon as of end-2009 and plans to add between 500-600 more terminals yearly.

Mobile lottery will allow players to pick their numbers via a text-message service. A text will cost P3.50, on top of the P10 bet based on PGMC’s proposal, which is believed to be more beneficial to PCSO since the whole P10 would go to the state charity organization while P3.50 will go directly to the telecommunications company.

 “If we can bring down the cost then that would be great. We just want to make it more affordable to the public,” Soo said.

He said PGMC’s online lottery system is fully capable of taking in text-betting into its main frame, pointing out that its partnership with the PCSO has expanded PGMC’s scope of involvement to also include the development of new games, telecommunications integration, implementing global best practices in the lottery business and continually upgrading the system features and functionalities.