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, Apr 27, 2017

State-run Philippine gaming regulator Pagcor posted a 26.9 percent increase in net income for the first three months of 2017.

PhilippinesWednesday, Apr 26, 2017

Philippine casino investor Belle Corp. has reconfirmed the comments made by vice chairman Willy Ocier surrounding its plans to expand its City of Dreams Manila project.

PhilippinesTuesday, Apr 25, 2017

Melco Crown’s Philippines subsidiary has backed away from comments made by Belle Corp’s chairman regarding expansion plans for City of Dreams Manila.

PhilippinesTuesday, Apr 25, 2017

MJC Investments Corp. officially opened its P8 billion (US$160.6 million) Winford Hotel and Casino on Friday last week.

PhilippinesMonday, Apr 24, 2017

The Philippine Economic Zone Authority (PEZA) has made the decision to no longer allow online gaming firms to operate in any of its accredited sites across the country.

PhilippinesTuesday, Apr 18, 2017

Philippine-listed Leisure and Resorts World Corp (LRWC) posted a 2.4 percent rise in its consolidated net income for the full-year 2016 to P1.1 billion, according to a filing from the company on Tuesday.

PhilippinesTuesday, Apr 18, 2017

The Supreme Court has dropped all civil cases linked to the dispute between DFNN Inc and the Philippine Charity Sweepstakes Office (PCSO) over the “illegal” rescission of its lotto equipment leasing deal.