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

PhilippinesThursday, Mar 23, 2017

The Court of Appeals has rejected an attempt to stop the historic Army and Navy Club in Manila from being converted to a hotel and casino, local media reports.

Macau, PhilippinesWednesday, Mar 22, 2017

Gaming suppliers, facing the challenge of changing audience demographics and new technology, need to move to “bigger and brighter” machines to lure clients into casinos, industry experts say.

PhilippinesWednesday, Mar 22, 2017

Philippines Gaming and Amusement Corp Chair Andrea Domingo said the regulator is planning to greatly expand its program to license offshore online gaming licenses now it is comfortable it is able to properly monitor and regulate activities.

PhilippinesFriday, Mar 17, 2017

Documents alleging the corruption of senior officials of the previous Philippine Amusement and Gaming Corporation (Pagcor) administration have been turned over to Justice Secretary Vitaliano Aguirre II.

Japan, PhilippinesMonday, Mar 13, 2017

Japan’s Universal Entertainment is disposing of treasury shares through an international offering and third-party allotment to raise funds for operations at its $2.4 billion Okada Manila resort in the Philippines.

PhilippinesMonday, Mar 13, 2017

The Philippine Court of Appeals has ordered Melco Crown Entertainment to abide by an accord to not hire the employees of rival Bloomberry Resorts and Hotels for a minimum of six months after their termination.

PhilippinesMonday, Mar 13, 2017

A lobby group has petitioned the Philippines’ Supreme Court seeking to stop the Phlippine Amusement and Gaming Corp. from issuing online licenses, arguing the permits violate the regulator’s charter and run counter to an executive order to crackdown on internet gambling.