Berjaya Sports Toto's Philippine unit to appeal against tribunal's ruling

PETALING JAYA: Philippine Gaming Management Corporation (PGMC), a unit of Berjaya Sports Toto Bhd’s 88.26%-owned subsidiary Berjaya Philippines Inc, will be appealing against the ruling of the Arbitral Tribunal of the Philippines on its exclusive right to supply an online lottery system for Luzon.
Berjaya Sports Toto said in a Bursa Malaysia filing today the tribunal had found that Philippine Gaming Management Corporation does not have an exclusive contractual right to supply an online lottery system for Luzon because the 1995 Equipment Lease Agreement and the 2004 Amendments to the Equipment Lease Agreement do not grant such exclusivity in their terms.
The final award received on Feb 23 was for the case heard in the International Chamber of Commerce court against the Philippine Charity Sweepstakes Office (PCSO).
“PGMC will appeal all aspects of the award and argue that more than 10 years of exclusivity as acknowledged by PCSO should prevail in determining the existence of an exclusive relationship and the award, and that the compensation structure which accords PGMC with a share of all lottery revenue from Luzon does not permit any third party supplier of lottery equipment to reduce or share in the revenue arising from Luzon that is contractually provided for PGMC.
“PGMC is confident that it will prevail on appeal,” it said.
According to the ruling, the tribunal had also ordered PGMC to pay all of PCSO’s reasonable costs and expenses in the arbitration, amounting to 53.59 million pesos (RM4 million) as well as to reimburse the advance cost amounting to US$200,000 (RM780,000).
On March 12, 2014, PGMC had filed a request for arbitration at the Secretariat of the ICC court stating its exclusive rights under the 1995 Equipment Lease Agreement and the amendment made to the agreement dated Dec 29, 2004, to supply the online system to Luzon, among others.