The Agreement, which will expire on August 2015, stipulates that PGMC shall be the sole provider or exclusive source for all lottery equipment in Luzon. The judicially approved agreement provides for PCSO to pay PGMC rentals "from all of (PCSO's) online lottery operations in (Luzon)".
However, based on Pacific Online's disclosure dated 1 June 2012, PCSO and Pacific Online entered into an agreement allowing Pacific Online to lease to PCSO lottery equipment for PCSO's online lottery operations in Luzon.
On 8 June 2012, the board of directors of PGMC authorized its president Mr. Paulino S. Soo to cause the filing of civil, criminal or administrative actions in connection with any matter related to or arising from the Agreement.
PGMC bases its suit on:
- a violation of its Exclusivity agreement between PCSO and PGMC over the Luzon area, and
- the prohibition against entering into government contracts without a prior public bidding