Philippines-listed PhilWeb Corp is repositioning its business towards an online-led, business-to-business (B2B) model, as the group seeks to capitalise on growing demand for digital gaming services, says the firm’s president, Brian Ng (pictured).
“The push that we’re doing now in the online segment is something that was already on the cards… and we’re starting to see a lot more value as we begin working with large institutional customers,” Mr Ng said in an interview with GGRAsia.
The company, historically known for its network of electronic gaming (eGames) venues in the Philippines, is increasingly focused on providing online-related services to third parties, including casino operators in the Philippines
Mr Ng said the firm’s legacy operations – which at their peak in 2016 comprised around 270 eGames venues – had effectively functioned as a B2B model, with most outlets operated by independent partners. That structure is now being replicated in the online segment, where PhilWeb runs consumer-facing platforms on behalf of institutional clients.
The shift comes after a series of disruptions to the business over the past decade. PhilWeb’s operations were significantly affected when its contract with the nation’s gaming regulator, the Philippine Amusement and Gaming Corp, was not renewed in 2016, forcing a rebuilding phase. The Covid-19 pandemic later accelerated a broader transition in the firm’s business model.
Mr Ng noted that PhilWeb had explored remote gaming as early as 2009, via a trial with Pagcor, but regulatory and technological limitations at the time prevented wider adoption.
Under new investors that have taken control of the company, PhilWeb has now accelerated its online strategy, enabling it to work with larger clients and offer “more sophisticated services”. These range from core platform provision to optional marketing and operational support, “depending on client requirements,” the executive explained.
Ownership change
PhilWeb in March saw the completion of a management-led buyout, with new local partners coming in as investors.
In October, PhilWeb announced that Gregorio Araneta Inc had agreed to sell its entire stake in PhilWeb for a total consideration of PHP1.80 billion (US$29.5 million currently). The buyers were identified as Philippines-based Nexora Holdings Inc and Velora Holdings Inc.
Gregorio Araneta Inc is controlled by businessman Gregorio Araneta III, brother-in-law of the Philippine leader, President Ferdinand Marcos Jr. The deal marked Mr Araneta’s exit from the gaming technology firm he had acquired in 2016.
“Mr Araneta’s entry into the business came at the time the company needed a change in ownership,” said Mr Ng, noting that gaming “wasn’t really a core business” for the Araneta group.
“It was clear, both for the group’s [PhilWeb’s] management as well as the owners, that a change was needed” for the company to expand its business, the PhilWeb president stated.
The changes in ownership structure also helped the group’s repositioning effort. The exit of Mr Araneta has simplified due diligence considerations for international partners, particularly in relation to politically-exposed persons, Mr Ng explained.
The deals with integrated resort (IR) operators in the Philippines came as a natural extension to PhilWeb’s expansion plans, Mr Ng observed, adding that the company “broadly, has a revenue share model” with its partners.
The technology provider has recently announced partnerships with organisations including: the Newport World Resorts casino and leisure complex and the Okada Manila casino resort, both in the Philippine capital; the Hann Resorts complex, a development with casino operations in Clark, central Luzon; and gaming machine supplier FBM Philippines.
PhilWeb also announced “entry into the game content distribution and aggregation business,” with initial deployments covering PT Gaming and NUSTAR Online.
“The services we provide depend on what our institutional customers need at any point in time,” Mr Ng told GGRAsia. “For IRs, they’re treating it as a separate business segment, that could be independent of their floors.”
Mr Ng also said there were “one or two other customers” with which PhilWeb was in discussions, though he did not disclose names.
Lessons learned
The PhilWeb president said the group has re-established its position in the market, including by targeting clients such as IR operators, and by applying the knowledge acquired over the years.
“Something that we’ve learned, is that to apply a land-based model to an online business might not be the correct starting point,” the executive explained. That approach by some of the operators, he said, might justify some of the obstacles that land-based venues in the Philippines have faced when they ventured into the online gaming segment.
Mr Ng stated: “IR operators are mired by these integration efforts. So, if we can take a number of those items away from them, and provide everything from the technology to the marketing, it streamlines the entire process.”
PhiWeb’s online eGaming business, which includes online gaming platform technology, systems integration, content distribution, and operational support services, has emerged as a key revenue driver for the group.
The company saw its first-quarter 2026 revenue rise sharply year-on-year, fuelling a turnaround in profitability. Revenue for the three months to March 31 totalled PHP233.1 million, up 30.4 percent year-on-year.
The online eGaming segment generated PHP79.3 million or circa 34 percent of total revenue.
PhilWeb currently operates about 170 eGames venues in the Philippines, with around 30 directly controlled by the company. Mr Ng said the firm recently exited the eBingo segment, and closed some of the eGames venues, in a bid to enhance profitability.
The eGames venues “currently operating are cash flow positive,” the executive noted. “But GGR [gross gaming revenue] coming out of these venues has gone down, maybe 15 percent to 20 percent from same time last year.”
He added: “This shows that the online segment is bridging the gap and bringing in the profit.”
Mr Ng said PhilWeb’s near-term focus would be on execution, particularly “delivering on recently secured commitments” in the online segment, adding that the group was also working on the possibility of establishing exclusivity agreements with some content providers in order to boost its offering.
In a recent letter to the Philippine Stock Exchange, PhilWeb highlighted that the contribution of the online eGaming business “has led to structural improvements in margins,” which will “continue to support the company’s efforts to improve profitability and strengthen its overall financial position”.
The company also said it was proposing to increase its authorised capital stock from PHP2.60 billion to PHP9.00 billion, consisting of 6.00 billion common shares and 3.00 billion preferred shares.
“This proposed increase is intended to provide the company with greater flexibility to raise capital, support future growth initiatives, and further strengthen its financial position,” the firm stated.
