The Finance Department, under the administration of incoming President Rodrigo Duterte, told Pagcor to privatize its casinos last year to raise funds for the national budget. The news was greeted positively by the industry amidst long-standing concerns about the potential conflicts of interest in having a market regulator, which also operates casinos.
Pagcor has a total of 46 properties spread across the country, which were seen as potential entry points to the Philippines for international investors. However, now the casinos are generating income, Domingo said the subject may be up for discussion.
"We are not opposing it. If it is going to happen it will happen but I’m not holding my breath,” Domingo said at a press conference during the ASEAN Gaming Summit this week. "What I am saying is it’s a business opportunity and we’re going to seize it and I think it’s the right decision. We are now earning more money from our own casinos than we did before.”
"We have not started pricing the casinos. We have not started planning it out. Whether it should be sold as a whole, all 46, or on a property per property basis. That still has to be decided,” she said.
The Philippines was one of the strongest gaming markets in Asia last year and Domingo said that momentum had continued into 2017. For the whole market, including the private operators, Pagcor is forecasting a jump to about US$ 3 billion 2017, compared with US$ 2.95 billion generated last year.
The growth has been driven by new openings and tourism growth, helped by increasing arrivals from China on the back of warming ties between the two countries. Okada Manila is scheduled to open its resort later this month, which will be the largest IR in Entertainment City to date.
Source: GMB / AG Brief
