The Philippine Charity Sweepstakes Office (PCSO) has extended its equipment lease agreement with Berjaya Philippines’ Philippine Gaming Management Corp. (PGMC) for another year, according to a filing with the Philippine Stock Exchange (PSE).

PGMC butted heads with PCSO, when the lottery operator scheduled a bidding process for equipment in 2017. PGMC, filing a petition at the Makati Regional Trial Court, argued that such bidding was a violation of the terms of their agreement, and sought an additional three years’ exclusive right to supply or lease lottery equipment to PCSO. Although the court ruled in favor of PCSO, PGMC has a pending appeal.

The PCSO stated earlier this year its intention to bid out its National Online Lottery System as part of an equipment and systems upgrade, yet proceeded with renewing its lease deal with PGMC from August 23, 2018 to August 22, 2019. In the same filing last Friday, Berjaya Philippines also reported a cash bond agreement between PGMC and PCSO, the amount of which was not disclosed.

Last July, the Philippine Commission on Audit (COA) reprimanded the PCSO for its failure to collect about PHP10 billion ($185 million) from 71 small town lottery operators, who had not remitted the amounts they had promised.