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

PhilippinesWednesday, Jan 25, 2017

The Philippine Charity Sweepstakes Office (PCSO) on Tuesday officially launched its expanded Small Town Lottery (STL) in an effort to stamp out illegal gambling.

PhilippinesTuesday, Jan 24, 2017

The Philippines Amusement and Gaming Corporation (PAGCOR) has disclosed that Jack Lam owes the regulator around P13.9 billion (US$278.3 million).

PhilippinesMonday, Jan 23, 2017

First Cagayan Leisure and Resort Corporation says it is looking to make substantial upgrades to its technical infrastructure in order to be more competitive against Pagcor’s new online gaming licenses.

PhilippinesWednesday, Jan 18, 2017

Genting HK-owned Star Cruises has announced its first-ever homeport deployment of SuperStar Virgo to Manila, a move that the company says caters to the growing Philippines outbound tourism industry.

PhilippinesTuesday, Jan 17, 2017

Philippines-listed Travellers International Hotel Group, operators of Resorts World Manila, says it had disbursed the last of the proceeds from its 2013 IPO in the fourth quarter of 2016.

PhilippinesSunday, Jan 15, 2017

The Department of Justice (DOJ) has announced it will be cracking down on illegal online casinos, as well as chase tax liabilities of small town lottery (STL) operations.

PhilippinesTuesday, Jan 10, 2017

The Philippine Stock Exchange has finally approved the sale of the 653.1 million Philweb shares belonging to founder Roberto Ongpin to Gregorio Araneta III.