DFNN demands P310M in damages from PCSO

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After winning its arbitral case on lotto squabble with the Philippine Charity Sweepstakes Office (PCSO), listed gaming technology provider DFNN Inc. is demanding a total of P310 million in damages instead of the P27 million originally awarded by the court.

In a statement to the Philippine Stock Exchange, the company said it wants a “correction” in the May 21 arbitral ruling by the Ad Hoc Arbitration Panel on its case against the PCSO – via a petition filed at the Regional Trial Court of Makati City.

The arbitration tribunal earlier ruled in favor of DFNN on the equipment lease agreement between PCSO and DFNN, and ordered the state-run gaming organization to pay DFNN a total of P27 million in liquidated damages. The agreement between covered the systems design development, and upgrade for lotto betting via personal communication devices.

Under the DFNN’s new petition, the firm said the ruling had “an evident miscalculation of figures” as the arbitration tribunal should have computed the penalty charges or an interest rate of 2 percent a month during the 10-year duration of the case since the agreement was canceled in 2005


“The tribunal should have computed the damages it awarded to DFNN for the PCSO’s illegal termination of the ELA at P310.095 million,” DFNN said in the disclosure.

The 2003 equipment lease agreement provided PCSO the exclusive rights to lease all hardware, software as well as the designs and development of a system that lets lotto bettors to place their bets via text messages and other wireless methods.

But a falling between the two parties in 2005 compelled the PCSO to terminate the deal even before the terms of the agreement reached deployment and commercial operations stage, as the PCSO moved to negotiate with other service providers to carry out the project.

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