The joint venture of Pacific Online Systems Corp. and Philippine Gaming Management Corp. (PGMC) bagged a much-coveted nationwide lottery equipment lease deal with the Philippine Charity Sweepstakes Office (PCSO) valued at P5.8 billion.
Pacific Online disclosed to the Philippine Stock Exchange on Monday that its joint venture with PGMC has formally received the notice of award from the PCSO in connection with the public bidding for the new PCSO lottery system.
The contract price of P5.8 billion was lower than the earlier indicated price tag of P6.15 billion.
A formal contract will be executed once the Pacific Online-PGMC joint venture has complied with a requirement to post a performance security bond.
Pacific Online holds a 50-percent stake in the joint venture while PGMC owns 49 percent. The remaining 1 percent is held by International Lottery & Totalizator Systems Inc. (ILTS), the current equipment supplier of PGMC.
ILTS offers a spectrum of lottery products and services, including gaming system software, instant ticket management, agent terminals, data communications, consulting, training, facilities management and maintenance support. It has provided online systems and equipment for 14 lottery organizations in 12 countries worldwide.
To recall, Pacific Online and PGMC set aside their old rivalry to jointly bid for the five-year nationwide lottery equipment lease deal with the PCSO.
Pacific Online and PGMC are currently the equipment lessors of the online lottery systems being used for PCSO’s lotto operations. PGMC previously served the Luzon area while Pacific Online covered Visayas and Mindanao.
By forming a joint venture, both companies gave up their old turfs to own a stake in a company that will serve PCSO’s lottery operations nationwide. INQ
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