Connect with us

Gambling

Pacific Online only bidder for 5-year ‘E-Lotto’ license

Published

on

Pacific Online Systems [LOTO 4.80, down 1.0%; 449% avgVol] [link] disclosed that the Philippine Charity Sweepstakes Office (PCSO) informed LOTO that it has declared LOTO the “Single Calculated Bid” for the 5-year “E-Lotto” license that was up for auction. LOTO explained that as the “Single Calculated Bid”, LOTO’s bid will be “subjected to post-qualification review by the [PCSO]… should there be no issues raised during post-qualification, it is expected that the [PCSO] will be issuing its Notice of Award.” LOTO was granted a 6-month test license to conduct e-lotto, during which LOTO managed to capture 14% of e-lotto sales. The company is owned by Willy Ocier.

MB bottom-line: Physical casinos are old and busted. Virtual gaming is the new hotness. Part of the reason is the scalability of virtual operations is simply unmatched. If Bloomberry [BLOOM 10.40, down 4.9%; 100% avgVol] wants to double its take from Solaire, it needs to build another Solaire (which it did). That costs a lot of money and takes a lot of time. If LOTO wants to double its take from e-lotto, it just has to… what, spin up another server or something, and then do a better job of marketing? There’s a lot less prestige in operating an online gambling service than in a physical casino, but there’s a lot less external risk and a lot more (potential) profit. As noted by Twitter user @Q4737 (link), it was “probably coincidental” that LOTO’s stock “moved for the past 3 days”. LOTO was up 25% in the three days of trading before the sudden announcement from PCSO.

 

Merkado Barkada is a free daily newsletter on the PSE, investing and business in the Philippines. You can subscribe to the newsletter or follow on Twitter to receive the full daily updates.

Merkado Barkada’s opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.

Continue Reading