The Philippine Amusement and Gaming Corporation (PAGCOR) has revoked the Business-to-Consumer (B2C) operating license of One Visaya Gaming Corporation (OVG) due to the company's violation of Know Your Customer (KYC) checks regulations. OVG must shut down its Bigwin29 casino website by October 8 and cease all gaming services offered through the site, although its Business-to-Business (B2B) license remains valid, allowing some operations to continue. Affected by this news, OVG's stock price fell nearly 6%, and the company stated it has established procedures to ensure business compliance and may appeal the regulatory decision.
Event Overview and Regulatory Actions
The Philippine Amusement and Gaming Corporation (PAGCOR) has officially revoked the Business-to-Consumer (B2C) operating license of One Visaya Gaming Corporation (OVG). This regulatory action occurred less than three months after OVG opened a live entertainment studio in Cebu City.
According to Bloomberg, PAGCOR confirmed the revocation decision was based on OVG's violation of regulations related to Know Your Customer (KYC) checks, which are designed to verify player identities and prevent fraud and money laundering activities.
Specific Impact of License Revocation
As required by PAGCOR, OVG must completely shut down its Bigwin29 casino website by October 8 and stop all gaming services provided through the site. This decision directly affects the company's consumer-facing business segment.
Although the B2C license has been revoked, OVG still retains its Business-to-Business (B2B) license, allowing the company to continue some operations, mitigating the overall impact of the regulatory action.
Market Reaction and Stock Performance
Affected by the news of the license revocation, OVG's stock price fell nearly 6% in the market. As of 11:08 AM Stockholm time, the company's stock price had fallen by 4.5%, showing investors' negative reaction to the regulatory action.
Market analysts believe that the stock price drop reflects investors' concerns about regulatory risks and the company's future profitability, especially when the main source of revenue is directly impacted.
Company Response and Compliance Measures
OVG has not yet made an official comment on the regulatory decision, but the company indicated it could appeal PAGCOR's decision, suggesting a possible legal challenge to the regulatory action.
The company revealed that it has established internal procedures to ensure compliance and due diligence in all business operations, showing that the company is actively responding to regulatory requirements and strengthening its compliance system.
Financial Obligations and Regulatory Review
PAGCOR is currently reviewing whether OVG has any outstanding financial obligations, which could affect the final penalty severity and future operating conditions for the company.
Cleaning up financial obligations is an important part of the regulatory process, typically involving the settlement of unpaid taxes, license fees, or other regulatory-related payments.
Business Background and Partnerships
It is noteworthy that earlier this year, OVG established a partnership with Evolution to launch its first live entertainment studio in Asia. This collaboration was seen as an important milestone in the company's business development.
Evolution, as a well-known industry provider, recently expanded its U.S. business by entering the Rhode Island market through a partnership with Bally's and provides live dealer blackjack tables in New Jersey and Pennsylvania.
Industry Impact and Regulatory Trends
This regulatory action occurs in the context of the Philippines strengthening its gambling industry regulation, reflecting the regulatory authorities' increasing emphasis on compliance requirements, particularly anti-money laundering and customer verification procedures.
Industry observers believe that this event may indicate that Philippine gambling regulation will become stricter, especially in the enforcement of KYC and anti-fraud measures.
Company History and Operational Background
One Visaya Gaming Corporation is a significant player in the Philippine gambling market, having recently opened a live entertainment studio in Cebu City, expanding its business scope.
The company's cooperation with Evolution includes signing a multi-year agreement for online live entertainment venues and slot machines, while maintaining a long-term partnership with PokerStars for over a decade.
Future Outlook and Solutions
OVG states it will continue to maintain some business operations through its retained B2B license, while potentially challenging PAGCOR's revocation decision through the appeal process.
The company's future development will depend on its ability to address regulatory concerns, strengthen compliance measures, and possible restructuring plans to adapt to changing market and regulatory environments.
