The Philippine Department of Finance expressed confidence that the country’s government will continue receiving much needed revenue from casinos once a previously revealed plan for their privatization is completed.
It was last year when the department announced that PAGCOR, the Philippine gambling regulator and current operator of a set of casino-style gambling venues will be stripped of the latter responsibility in order to be able to focus solely on its role as a watchdog of the nation’s gambling industry.
Local media reported in May that interested private-sector operators would be invited to apply for a license to run the casinos.
PAGCOR has previously voiced concerns that the government would lose around PHP24 billion in revenue contributions each year as a result from the casino privatization. According to Andrea Domingo, Chairwoman of the gambling regulator, the PAGCOR-run casinos generate around PHP2 billion every month and they need to find ways for that money to be retained even after the move is completed.
Philippine Finance Secretary Carlos Dominguez III pointed out that the privatization is a necessary step and that it will actually bring additional tax revenue once control over all state-run casinos is assumed by private operators.
Mr. Dominguez explained that casino operators will have to pay a certain tax with a set rate as well as a fee for the right to operate the venues. In addition, they will also be obliged to pay a certain portion of their gross gaming revenue. In other words, the government does not expect to lose the money it has been earning from casino operations. It is also believed that the regulator would too generate additional revenue from the license fees it is poised to receive from private-sector operators in future.
PAGCOR was created under a Presidential Decree. Said document will have to be amended in order for the organization to be stripped of its responsibility as an operator. A bill on the matter was submitted to the Philippine government in May, under which PAGCOR will cede functioning as an operator of casino-style gambling and will thus remain only a government entity that is responsible for regulating the industry.
As mentioned above, PAGCOR is currently the direct operator of a set of state-run casinos and is also responsible for overseeing privately owned ones, including the four existing integrated casino resorts in the Philippine capital Manila. The regulator-cum-operator’s properties are run under the Casino Filipino brand. As seen on PAGCOR’s official website, there are eight full-scale sites of that brand to be under the regulator’s purview as well as 36 satellite locations.
