Starting June 1, many businesses in parts of the Philippines were permitted to start to slowly reopen after a 10-week shutdown, but casinos weren’t part of the group.
In addition to the capital city of Manila, President Rodrigo Duterte signaled that Davao City, Cagayan Valley, Central Luzon, Calabarzon, Pangasinan and Albay would enter the next phase of reopening, called General Community Quarantine, downgraded from Enhanced Community Quarantine, until June 15.
Under general quarantine, some restrictions on movement and public transport are lifted and certain businesses allowed to open. There has been no word yet on when casinos and gaming venues—many of them in Metro Manila—will be allowed to open, or when the general quarantine will be downgraded the so-called Modified General Community Quarantine (MGCQ) phase, described by Inside Asian Gaming as a “transitional phase” between general quarantine and the “new normal.”
In May, PAGCOR appealed for permission from the Inter-Agency Task Force for Covid-19 (IATF) to resume land-based gaming operations, “with all the proposed safety and health protocols to be implemented.
“PAGCOR’s legal mandate is to operate as well as regulate the gaming industry, and as we do this, we are able to generate revenues to help in nation building efforts,” PAGCOR told Inside Asian Gaming. “Presently, our secondary aim is to basically maximize revenue generation with little to no risk of spreading the virus. Approval of our recommendation lies in the hands of the government’s IATF.”
PAGCOR said resuming land-based gaming operations will ensure a level of job security for gaming employees across the country.
“While we await the IATF’s decision on our recommendation and the completion of resumption requirements of POGO operators and service providers, PAGCOR and its licensees are preparing both our facilities and employees for the anticipated reopening,” it said.
Meanwhile, according to Asia Gaming Brief, the integrated resorts that make up Entertainment City are feeling the pinch. Okada Manila posted a widened operating loss of JPY 1.7 billion (US$16 million) in the first quarter of 2020, due mainly to the suspension of all integrated resort operations from March 15. Okada Manila planned to lay off as many as 1,000 workers due to Covid-19.
GGRAsia reported that reopening of Manila casinos “could be on the horizon,” possibly around June 15, per Union Gaming analysts John DeCree and Sam Ghafir. “President Duterte announced he could begin easing some restrictions on June 1 that would allow gatherings of up to 10 people and any businesses or shops that can adhere to the 10 person capacity,” noted Union Gaming. “This would likely preclude casino resorts, which would possibly have the opportunity to open around June 15.”
In mid-May, the Nomura Group said Bloomberry Resorts, operator of Solaire in Entertainment City, planned to “restart approximately 20 percent of its gaming capacity once the lockdown is lifted” in Metro Manila, “but this will greatly depend on the government allowing casinos to operate.”
Belle Corp. said its share of gaming revenue from the City of Dreams Manila dropped 39 percent in the first quarter due to Covid-19 disruptions.
The real estate company said it generated P445 million ($8.8 million) in the period, down from P724.7 million in the prior year. The income from COD is the company’s main revenue growth driver, it said in a statement to the Philippine Stock Exchange.
Overall, group revenue fell 25 percent to P1.42 billion, while net income was P576.8 million, down 31 percent from a year earlier.
Belle is a co-licensee of the City of Dreams with Melco Resorts and Entertainment. Even so, Belle said it does not expect any cash flow or liquidity problems over the next 12 months, and City of Dreams Manila says it has begun preparations for a “soft reopening” by setting up Covid-19 testing for all staff, housing them onsite and reconfiguring its gaming floors, including a limit of just three players on any one gaming table.
As of May 31, the Philippines had reported 18,086 cases of Covid-19 and 957 deaths.
