PhilWeb, Leisure Resorts look at offshore licenses
Billionaire casino mogul Enrique Razon, apparently unruffled by Philippine President Rodrigo Duterte’s war on gambling in the country, is moving forward with plans to build a 20 billion pesos (US$418 million) resort in Manila.
Razon, chairman and founder of Bloomberry Resorts Corp., says his Quezon City casino in northern metro Manila is expected to break ground in mid-2017 and could be complete by the end of 2019.
The new president has directed most of his ire at loosely regulated e-Gaming and e-Bingo operations. He acted swiftly after taking office to shut down companies like PhilWeb Corp., which runs hundreds of internet cafes around the country, claiming they prey on the poor. The Philippines government is also planning to privatize the lottery operations of the state-owned Philippine Charity and Sweepstakes Office. Duterte has called PCSO one of the most corrupt government agencies in the country, reported the Philippine Inquirer.
Razon says the president’s anti-corruption crusade could actually help bricks-and-mortar casinos, reported Bloomberg News.
“I think cracking down on this, looking at it from our perspective, helps the licensed casinos,” Razon said, adding that his Solaire Resort and Casino on Manila Bay is operating at “full capacity” since Duterte was elected in May. The president is also seeking to improve relations between China and the Philippines, and increase travel between the countries by improving the airport and roadways.
“Razon is making a bet that President Duterte will deliver on his promises on infrastructure,” Jonathan Ravelas, chief market strategist at BDO Unibank Inc. in Manila told Bloomberg. “Tourism has far more to go if only we have the right infrastructure.”
The number of foreign tourists to visit the Philippines rose 14 percent to almost 3 million from January through June year-on-year, with most coming from South Korea, U.S. and China, government data show. Bloomberry’s gross gaming revenues also were up, increasing 17 percent in the same period on a year-on-year basis.
The stock value of PhilWeb and Philippine gaming investor Leisure and Resorts World Corp. cratered after the Philippine Amusement and Gaming Corp. declined to renew their licenses. Both companies are among several gaming firms that hope to obtain new offshore gaming licenses being offered by PAGCOR.
“We are studying it at the moment,” PhilWeb president Dennis Valdes told the Inquirer.
Razon, meanwhile, is expanding in the Philippines after withdrawing from a casino project in South Korea and another in the Republic of Cyprus. His company also announced in June that it will sell the Jeju Sun Hotel and Casino on Jeju Island in South Korea to Macau junket runner Iao Kun Group Holding Co Ltd., reported GGRAsia.
