The Securities and Exchange Commission (SEC) announced that it has revoked the corporate registration of Lucky South 99 Corp. for operating a Philippine Offshore Gaming Operator (POGO) facility in Pampanga without the necessary license.
The SEC’s Enforcement and Investor Protection Department (EIPD) revoked the certificate of incorporation of Lucky South 99 for violating Section 44 of Republic Act No. 11232, or the Revised Corporation Code of the Philippines (RCC) in relation to Section 179 (j) of the RCC.
Section 44 of the RCC provides that no corporation shall possess or exercise corporate powers other than those conferred by the law or its articles of incorporation (AoI), and those necessary or incidental to the exercise of such powers.
Incorporated in 2019 originally under the name, Lucky South 99 Outsourcing Inc., the company was organized for the primary purpose of engaging in business process outsourcing activities, with a secondary purpose of engaging in the real estate business.
On February 7, 2024, the company amended its AoI, changing its corporate name to Lucky South 99 Corp. and primary purpose to the business of gaming, entertainment and content streaming of live gaming action together with the operation of electronic games at gaming sites.
Its secondary purpose included the development of a hotel with internet shops and gaming facilities.
However, an investigation by the EIPD revealed that Lucky South 99 Corp. has been included in the list of Offshore Gaming Licensees issued by the Philippine Amusement and Gaming Corporation as early as August 8, 2023.
Prior to this, the Department of the Interior and Local Government (DILG) also announced in an advisory dated September 19, 2022 that it conducted a raid operation in Lucky South’s office for operating without license and allegedly being involved in the trafficking of Chinese nationals.
The DILG subsequently closed down Lucky South 99’s POGO facility in Pampanga.
“It is important to emphasize [that Lucky South 99 Corp.] as a juridical person, is only allowed to exercise powers inherent to its corporate existence as provided in the [RCC] and those conferred in its [AoI],” the order read.
“Considering that nowhere is it stated in its primary purpose that Lucky South 99 Corp, is authorized to engage and /or act as a Philippine Offshore Gaming Operator in the Philippines, the activity of the company that intends to mislead or deceive the public into believing that it was authorized to conduct the aforesaid activities is considered an ultra vires act and therefore constitute serious misrepresentation,” the order read.