Pacific Online Systems Statement on President Rodrigo Duterte’s Order on the Suspension of PCSO’s Gaming Operations

Please be advised, as ordered by President Rodrigo Duterte in the late evening of 26 July 2019, that all gaming operations of the Philippine Charity Sweepstakes Office (PCSO) were suspended effective 27 July 2019. Pacific Online Systems Corporation (PSE: LOTO) is the lessor of the online lottery system being used by PCSO for its lotto operations in Visayas and Mindanao, while its subsidiary, Total Gaming Technologies, Inc. (TGTI), is the equipment lessor for PCSO’s Keno game nationwide.

Unfortunately, to date, Pacific Online still has no information on the suspension of PCSO’s gaming operations beyond those that have been conveyed through the public statements made by the President as well as of the PCSO General Manager. The Corporation, however, has been in constant coordination with the PCSO Management and is fully supportive of the latter’s efforts to seek the President’s reconsideration of his decision.

The negative impact of the suspension (i) on the ability of PCSO to raise funds for its charity works, (ii) on the lives of thousands of our countrymen whose livelihood are connected, directly or indirectly, with PCSO’s gaming operations, as well as (iii) on the operations of the Corporation and its subsidiaries; are inestimable at this point; and the Corporation can only hope that the suspension will be lifted sooner rather than later. Further, the Corporation is fully confident that, as a listed company, its transactions with PCSO on both lotto and Keno were entered into in accordance with law, and are above-board and fair.

Pacific Online will give updates on this situation as soon as it gets some clarity from PCSO Management in the coming days.