PhilWeb has recently announced that it has incorporated Philweb International Gaming Corp., a wholly-owned subsidiary, to handle its expansion plans overseas.
With a capitalization pegged at PHP 1 billion (about US$21 million) for the expansion program, PhilWeb plans to work with government authorities in target countries to commence franchised gaming operations.
In the Philippines, Philweb is the technology partner of the Philippine Amusement and Gaming Corporation (PAGCOR), the Philippine authority on games of chance, and operates on behalf of the latter, online gaming kiosks operated as internet cafes.
According to a statement by Philweb President Dennis Valdes:
“We will demonstrate that our very successful business model of partnering with government, in this case, PAGCOR, to develop and operate technology-based gaming can be transplanted to other countries throughout the region and other parts of the world."
The statement added that Philweb's successful partnership with PAGCOR has already attracted the eye of other governments, adding that the "(business) model is attractive because Philweb takes care of the development, rollout and operational costs ... government does not need to contribute capital to create the business, and thus has no cost of money or financial risk."
In addition to contributing to the national coffers, online gaming also helps abet the rise of illegal gambling, Valdes noted.
Q3 results for Philweb were significantly up, with Q3 profit up 133% to PHP 144.8 million. The firm's total net income for the first three quarters of 2009 reached PHP 372.4 million, up 76% over the same period last year. Philweb expects profits to net PHP 550 million this year.
