Once again, a Philippine lawmaker has called for the country’s gaming regulator to be split into two separate entities: one to oversee the integrity of the casino industry, and one to operate casinos itself.
Currently, the Philippine Amusement and Gaming Corp. (PAGCOR), does double duty, as both regulator and operator of the Casino Filipino brand. Senator Sherwin Gatchalian, chairman of the Senate Committee on Ways and Means, says it’s a clear conflict of interest and must come to an end.
As reported by the Philippine News Agency, Gatchalian says PAGCOR cannot be a strict enforcer of gaming regulations or risk losing revenue, inhibiting growth of the industry, and driving away Philippine Offshore Gaming Operators (POGOs).
“If we can’t solve that, if we can’t separate regulation and operation, we can’t separate our problem with POGO,” he said, referring to recent crimes linked to POGOs, including human trafficking.
Some financial experts and economists have pushed a total ban on POGOs due to the “reputational risk” they bring, the senator noted, as investors may steer clear of a market tainted by criminal activity. He also claims some POGOs hide their income to pay less in taxes. In one case, an offshore operator purportedly declared capital of just PHP25 million (US$441,000) until an auditor discovered the figure was actually PHP1 billion (US$17.66 million).
Alejandro Tengco, recently appointed chairman and chief executive of PAGCOR by President Ferdinand Marcos Jr., said in August he needs “time to study” a division of responsibilities within PAGCOR.
In related news, according to GGRAsia, industry consultant GCG Gaming Advisory Services Pty Ltd. says the Philippine gaming sector could be “competing with Singapore” for gross gaming revenues (GGR) in the next few years.
In the short term, GCG projects GGR of approximately “US$1.1 billion to US$1.3 billion” for the fourth quarter of 2022, with the aggregate for the year to reach “US$3.9 billion to US$4.0 billion.”
“The Philippines is quickly recovering to 2019 levels, well before other markets,” said GCG, adding that while 2022 was “still not at 2019 levels of US$5.01 billion,” the latter “should be reached in 2023.”
“The Philippines enjoys a strong locals market, a strong expat community” including people from South Korea, mainland China, Taiwan, and Japan, and had “fully-open international borders” added the consultancy’s report.
“Strong regulations, introduction of PIGO [Philippine Inshore Gaming Operators], and new airports in Cebu and Clark, all indicate that the Philippines will be competing with Singapore for the top GGR positions over the next few years.”
The report added that the market could reap annual GGR of “US$10 billion” in 2027.
