Philippines Form Task Force to Shut Down POGOs
Forty-one remaining Philippine Offshore Gaming Operators (POGOs) have pledged to disband and leave the country following President Ferdinand Marcos Jr.’s order banning the industry.
On July 22, following reports of crime in the industry including human trafficking, torture and money laundering, Marcos called for an end to all POGOs, legitimate and otherwise.
The Department of Justice is part of a task force charged with overseeing the shutdown. Its partners include the Philippine Amusement and Gaming Corp. (PAGCOR), the Presidential Anti-Organized Crime Commission and the Bureau of Immigration.
The Department of Labor and Employment will help some 22,000 Filipino POGO workers find new employment. Foreign workers must make plans to return to their countries by mid-October.
Star’s FY24 Results Indicate Tough Road Ahead
Star Entertainment released its delayed FY24 results as well as a business update Sept. 26. Taken together, they paint a dire picture for the beleaguered operator. According to Star, its group revenue for FY24 was AU$1.67bn (US$ 1.15bn/£858m/€1bn), with EBITDA of $175m. Those represent year-on-year declines of 10% and 45%, respectively. Its net profit after tax was $12m, a 71% drop from last year’s total of $41m. The company’s net loss, meanwhile, was $1.68bn.
Star was delayed in releasing the results and was halted from trading on the ASX for several weeks. The ASX stopped trading on the company after the latest Bell report and its failure to publish the financial report by 31 August.
Overall, the company said its trading performance “deteriorated” over the second half of the year. This trend “has continued into the beginning of FY25,” with July and August posting EBITDA losses of $6.6m and $1.1m, respectively. Operating expenses have increased due to “ongoing transformation and remediation related activities,” in reference to the regulatory obligations related to the first and second Bell inquiries.
In the update, Star made multiple mentions to the ongoing Bell Two inquiry regarding the suitability of Star Sydney. The final report was submitted to the NSW Independent Casino Commission (NICC) July 31 and was made public Aug, 30. The NICC issued a show cause notice to Star Sept. 13, and is still “considering next steps.”
MGM Resorts Applies for UAE Gaming License.
On Sept. 19, MGM Resorts CEO Bill Hornbuckle confirmed that the U.S. gaming giant has filed for a casino license in Abu Dhabi, capital of the United Arab Emirates (UAE).
MGM already has a presence in the UAE. In 2017, it partnered with Hospitality and Leisure on a luxury resort on Jumeirah Beach. That complex will feature the MGM, Bellagio and Aria hotel brands and offer a total of 1,500 rooms.
“I hope and believe we’ll hear more from Abu Dhabi later this year about the federal mandate and federal oversight and we’ll go from there,” Hornbuckle said. He added that MGM will not enter the market without a casino license, because “That’s the business MGM is in.”
Wynn Resorts will be first to market in Abu Dhabi. Its Wynn Al Marjan Island, developed in partnership with Marjan and RAK Hospitality Holding, is expected to open in 2027. The U.S.-based company is now awaiting its casino license from the General Commercial Gaming Regulatory Authority (GCGRA).
Macau Plans Virtual Currency Rollout
In 2022, Macau officials laid out a plan to create and issue the city’s first virtual pataca, or e-MOP. In September, the Macau Monetary Authority confirmed that the People’s Bank of China should be ready to present a prototype with “basic functions” by the end of 2024.
The move is part of Macau’s drive to keep pace with the global digital economy. It’s also in keeping with the government’s “1+4” program, launched in 2023, to end the city’s reliance on gaming by developing four additional sectors: finance, technology, health, and meetings and conventions.
Patacas are the official currency of Macau, though Hong Kong dollars are most often used in casino transactions.
‘POGO Mayor’ Alice Guo IDs Central Figure in Philippines Gaming Probe
In a Sept. 24 Senate hearing, onetime Bamban, Philippines mayor and former fugitive Alice Guo said she is innocent of crimes related to Philippine Offshore Gaming Operations (POGOs).
But later, in a closed-door session with the Senate panel, Guo revealed a “crucial personality” in the industry. In July, President Ferdinand Marcos Jr. banned POGOs due to allegations of widespread crime, including running love and crypto scams, and using trafficked workers.
Senator JV Ejercito has described the first executive session with Guo as an “ice breaker.” The Chinese national, whose real name is Guo Hua Ping, masqueraded as a Filipina in order to run for office in Bamban. She faces multiple charges, including money laundering, human trafficking, graft and misrepresentation.
Macau Expects 100K Visitors for Golden Week
Macau tourism chief Maria Helena de Senna Fernandes is optimistic about tourist volumes for October’s Golden Week celebration. With fair weather predicted for the seven-day national holiday, more than 100,000 people could travel to the special administrative region (SAR).
As of last week, about 70 percent of city hotel rooms were booked for the celebration, said Fernandes, director of the Macau Government Tourism Office. “Hotel bookings go mad in the week just before the Golden Week. … At present, many five-star hotels are almost fully booked.”
Gross gaming revenue for the period could reach MOP21.5 billion (US$2.68 billion), up 10 percent over 2023.
Tomohiro Okada Appointed Universal President, Director
Japan-based Universal Entertainment has named Tomohiro Okada as representative director and president. The appointment was effective Sept. 19.
Okada replaces Jun Fujimoto, who was forced out after transferring $43.5 million in funds without following proper protocol. By doing so, a Tokyo court ruled, he was in breach of his fiduciary duty.
Ironically, in 2017 Fujimoto replaced Kazuo Okada, Tomohiro’s father and founder of Universal Entertainment, who was ousted following accusations of embezzlement. Universal is the parent company of Okada Manila, an integrated casino resort in the Philippine capital.
More Whales at Macau Tables
According to a September table survey by Citigroup, premium-mass players at Macau casinos placed HK$655,000 (US$64K,000) in wagers per session for the money. That’s up 43 percent over the same month last year.
Citi analysts George Choi and Ryan Cheung agree that “demand by mainland Chinese players remains robust, despite the recent crackdown on illicit money exchanges and the struggling Chinese economy.
At Galaxy StarWorld, they saw one gambler place a HK$640,000 bet. High rollers at Galaxy Macau and Wynn Palace made wagers in the HK$130,000 to HK$330,000 range.
“Macau is still getting players who are still very much willing and able to spend,” observed the Citi team. “The fact that this happens after the Macau government’s decision to criminalize illegal money exchanges within casino premises means that most players, via legitimate channels, are still able to get their funds to the Macau casinos.”
