Cristino Naguiat, CEO of the Philippine Amusement and Gaming Corporation, stated that the local gaming regulator will not issue any casino licenses over the following eighteen months.
In other words, no gaming operator will be allowed to commence the construction of a gambling venue until the current President of the Philippines Benigno Aquino steps down from his position in the middle of 2016.
Mr. Aquino assumed the presidency back in 2010. According to the Constitution of the Philippines, the head of the state can only serve one term that continues six years. That is, he cannot be re-elected. It is important to note that no casino license was granted during Mr. Aquino’s term.
Mr. Naguiat shared with local media that they only have a year and a half left and that it would be a good idea to wait for the next administration to decide as to whether new gambling venues should be launched. As mentioned above, the chairman of the local gaming regulator pointed out that it is not likely to issue any licenses until mid-2016.
Mr. Naguiat’s announcement came as the Government of the Philippines is currently discussing Caesars Entertainment Corp.’s proposal for a new gambling venue in the country. The U.S. gaming operator is currently looking to expand its operations in Asia, after its plans for the construction of a $1-billion resort in Macau failed.
Last month, the Philippine gaming regulator stated that it would like to wait for the completion of Entertainment City before it considers the possibility for new licenses to be issued.
Currently, a 297-acre area of land fill is in the process of being turned into a huge entertainment complex with numerous gambling options. This ambitious project is known as Entertainment City and it is expected to match or even surpass the success of Macau’s Cotai Strip.
Each resort, which is to be located within Entertainment City, will cost to its investors at least $1 billion. The first venue, Solaire Resort and Casino, opened doors back in 2013. The second venue – City of Dreams Manila is planned to have a soft launch this Sunday. It is owned by Henry Sy, the wealthiest person in the Philippines, and Melco Crown Entertainment Ltd.
Alliance Global Group Inc. and Genting Hong Kong Ltd. as well as Japanese billionaire Kazuo Okada’s Universal Entertainment Corp. are some of the other prominent holders of licenses.
Standard & Poor’s, a U.S.-based company that specializes in the provision of various types of financial services, predicts that next year, revenue from gambling activities in the Philippines will grow more rapidly than local economy. The main reason for this is the increase in resort capacity and the fact that people will have more money to spend, i.e. they will have a bigger disposable income.
