Expansion plan hoped to double revenues
Another casino in the Philippines’ Clark Freeport Zone has closed.
The Philippine Amusement and Gaming Corp. ordered the shutdown of , Frontier Capital’s Casablanca Casino at the Stotsenberg Hotel earlier this month because the new operators could not pay a remaining escrow of PHP255 million (US$5.13 million), reported CalvinAyre.com.
PAGCOR Chairwoman Andrea Domingo told the Sun Star newspaper the company received “several extensions” but was unable to settle the debt. The closure put almost 200 people out of work.
The hotel property was acquired in early 2015 by Australia-listed Frontier Capital for $226 million in shares to be transferred in three tranches, the website reported. Frontier completed the acquisition in early 2016 and announced “aggressive expansion plans” that it said would more than double profits from $5 million to $11.7 million by 2018. The company bought the hotel through a “scrip-only payment” with a $25 million profit guarantee over five years from E!xcite Gaming and Entertainment Inc., manager of the hotel and casino.
According to the Asia Gaming Brief, Angeles City Mayor and Stotsenberg shareholder Carmelo Lazatin blamed Frontier for the closure of the casino, which featured 190 slot machines, 36 gaming tables and two VIP rooms. The 239-room hotel and a 2,000-capacity convention center remain open.
Last December, PAGCOR officials and local law enforcement shut down gaming facilities at Jack Lam’s Fontana Leisure Parks and Casino, also in Clark Freeport, as well as Lam’s Fort Ilocandia casino in Laoag City. There are still four casinos operating inside the Freeport: Casino Filipino, Widus Casino, Royce Casino and Midori Casino.
