The year ahead - Andrew Klebanow

I think the Philippines remains an intriguing story in 2017. President Duterte’s call to PAGCOR to privatize its casinos was a wise decision, although that decision was driven more by the President’s sense of morality rather than a purely business decision.

PAGCOR’s dual role as operator and regulator has traditionally discouraged outside investment. PAGCOR branded casinos also have been starved of capital re-investment as the agency strove to upstream as much revenue to the central government to support its mission of generating funds for nation building.

The value of those PAGCOR properties could be significant, particularly if private operators re-invested and improved the quality. If PAGCOR can appropriately value its casino properties based on future cash flows, it will be able to maximize the value of those assets while attracting operators more adept at operating casinos. The challenge is mitigating any uncertainty for those operators. Duterte’s call to arrest casino operator Jack Lam is an example of that uncertainty.

Note from Andrew Klebanow, Global Market Advisors. 

Other notes from: 

Augustine Vinh, president and CEO of Stellar Management

Ben Lee, managing partner of IGamiX Management & Consulting

David Green, CEO of Newpage Consulting

Ebbe Groes, CEO of EveryMatrix

Harmen Brenninkmeijer, managing partner at Dynamic Partners

Jay Sayta, founder of Glaws.com

Michael Zhu, vice president, operations, planning, analysis of Innovation Group

Mike Santangelo

Sam Sheng, director of Double Square Consulting

Steve Gallaway, Global Market Advisors

Sudhir Kale, CEO of GamePlan Consulting

Tim Shepherd, co-founder and president of business development at Silver Heritage Group

More news from this jurisdiction

PhilippinesFriday, Jun 23, 2017

Gaming regulator Philippine Gaming and Amusement Corp. (Pagcor) has indicated that it intends to lift the suspension on Resorts World Manila’s gaming license soon.

PhilippinesMonday, Jun 19, 2017

Securities and Exchange Commission chairperson Teresita Herbosa says the current P5 million (US$100,000) threshold for casinos should be lowered to cover more suspicious transactions.

PhilippinesMonday, Jun 19, 2017

City of Dreams Manila operator Melco Resorts and Entertainment (Philippines) Corp. says it has beefed up security following the June 2 casino attack at Resorts World Manila.

PhilippinesMonday, Jun 19, 2017

Philippines is set to emerge as the largest entertainment market in ASEAN - surpassing that of Singapore due to favorable policies and infrastructure development, says Morgan Stanley.

PhilippinesTuesday, Jun 13, 2017

The operator of Resorts World Manila on Tuesday said it will exert all efforts to “preserve and defend” the company’s provisional license, following the Pagcor announcement last Friday.

PhilippinesTuesday, Jun 13, 2017

A proposed conversion of TSCLK Complex convertible bonds, owned by NagaCorp CEO Dr. Chen Lip Keong, would take his ownership to above 50 percent, up from his current 39 percent, said Union Gaming in a note on Monday.

PhilippinesMonday, Jun 12, 2017

Junket operator SunCity Group has drawn the attention of the Philippine Amusement and Gaming Corporation (Pagcor) after it took over the casino at the Sofitel Philippine Plaza without permission.