S.A.G.E. LOSES APPEAL IN PAGCOR CASE

2 May 2008

Cancellation of contract to operate online casinos at the heart of dispute


A dispute over the cancellation of a contract for the operation of online casinos by the Internet company Sports and Games Entertainment Corporation (SAGE) saw finality in the Philippines Court of Appeals this week.

SAGE had petitioned the court for monetary compensation from the Philippine Amusement and Gaming Corporation (PAGCOR) for cancelling its contract to operate online casinos.

In a nine-page decision written by Associate Justice Arcangelita Romilla-Lontok, the Court stated that it had dismissed SAGE’s claim because the verification and certification as to non-forum shopping attached to the complaint had been falsified.

The State-run gaming corporation also pointed out that Patrick Deakin, the former Chief Operating Officer for SAGE, had disowned a signature on the verification and certification form and asserted the same as falsified.

PAGCOR abandoned the deal that allowed SAGE to operate online casinos after the Supreme Court declared its authority to operate Internet sportsbetting and gaming sites null and void. However, SAGE claimed that it had incurred more than $4.4 million in establishing its online casino system and sought compensation.

The Court stated that, without the signature of Deakin on the complaint being filed, SAGE could not as an entity perform the act of signing itself and, therefore, the grievance was not sufficient or credible and warranted dismissal.

Online Casino News courtesy of InfoPowa