Pagcor approves first mega-casino outside Metro Manila

The Philippine Amusement and Gaming Corp. (Pagcor) has approved the first mega-casino investment outside Metro Manila amid plans to spread the country’s gaming projects to the provinces.

In a briefing, Pagcor chairperson Andrea D. Domingo said the regulator approved a $500 million Filipino-owned casino complex in Lapu-Lapu City in Cebu, adding there is also another $300 million project still pending for approval.

The second proposed casino project, being proposed by a Hong Kong-based company, may be located in Mandaue City, also in Cebu, Domingo said.

“Cebu is really the second largest metropolis in our country and there are cities that are near the airport and LGUs [local government units] are willing to give the resolution,” Domingo said.

In 2015, Sino-American Gaming Investment Group, controlled by Denver-based consultant RiskWise Group, and Macau Resources Group told Reuters they had proposed large scale resorts – one on the tourist haven of Cebu and the other on the island of Napayawan, near a proposed airport.

Meanwhile, Domingo revealed that Pagcor will implement a fiveyear moratorium for issuance of new gaming licenses in Metro Manila following the requests from casino operators in the Entertainment City in Parañaque.

"We listened to the people who were here, who took a risk when there was no one else here," Domingo said.

For this year, Pagcor expects the country’s gaming industry would generate P160 billion in revenues due to renewed optimism in the sector.

“For the whole year, for all properties including private ones, is about R155 billion to R160 billion for 2017. Roughly about 30 percent more,” Domingo said.

“Now I can say with a lot of confidence that the Philippines is one of the best places to invest now, to go to. It’s safe now. There should be a level playing field in all transactions with the government,” she added.

But the Pagcor chief clarified the 30-percent growth they are expecting this year was the increase in government targets from 2016 to 2017.

Domingo also expects that the change in government will help entice more players to enter the country.

“We’re more friendly with other ASEAN countries, offering a level playing field. We have a very safe country to go to, we have a lovely people, hospitable people, and a very strong President who does what he preaches and makes good his promises,” Domingo said.

On Tuesday, Domingo said that Pagcor's gross income last year jumped 16.62 percent to R55.06 billion from R47.21 billion a year ago. Other reasons cited that contributed to the record income were fees from licensed casinos and offshore gaming.

She explained as a result of the bullish growth of the agency's income, it was able to increase its total contributions to nationbuilding by 25.45 percent.

"From R29.07 billion in 2015, our total contributions in 2016 amounted to R36.47 billion. This was R7.40 billion higher than the 2015 figures," Domingo said.

"With this amount, Pagcor has once again contributed significantly not only to the national coffers and to its mandated beneficiaries but largely to the benefit of the less privileged Filipinos," she added.

Of the agency's R36.47 billion contribution to nationbuilding, R25.32 billion went to the National Treasury in the form of 50-percent government share.

Pagcor also paid R2.66 billion franchise tax to the Bureau of Internal Revenue. This amount was 22.87 percent or R496.15 million higher than the R2.16 billion franchise tax remitted by Pagcor in 2015.

Meanwhile, the Philippine Sports Commission's share in 2016 reached P1.26 billion – a hefty 22.87 percent or R235 million increase from the R1.03 billion share a year ago.

Aside from the PSC share, Pagcor allocated R16.99 million cash incentives to athletes and coaches who brought honor to the country through winning in international competitions.