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, Feb 17, 2017

House leaders are seeking to amend the charter of the Philippine Charity Sweepstakes Office to grant it the authority to issue permits for small town lottery (STL).

PhilippinesTuesday, Feb 14, 2017

Alleged middleman of gambling tycoon Jack Lam, Wally Sombero, has denied involvement in the bribery scandal involving Justice Secretary Vitaliano Aguirre and two Bureau of Immigration (BI) officials.

PhilippinesTuesday, Feb 14, 2017

A surge in offshore gaming firms is likely to drive up office rental prices in Metro Manila over the next year, says property consultant Colliers International.

PhilippinesFriday, Feb 10, 2017

Philippine Amusement and Gaming Corp. (Pagcor) chair Andrea Domingo denies she was offered a bribe by gaming tycoon Jack Lam, though she admitted having met with him on three occasions.

PhilippinesThursday, Feb 09, 2017

State-run Philippine Amusement and Gaming Corp. (Pagcor) has reiterated its authority in granting offshore gaming licenses in the country.

PhilippinesWednesday, Feb 08, 2017

Philippines-based Meridien Vista Gaming Corp. (MVGC) has been asked to immediately stop its numbers game operations.

PhilippinesWednesday, Feb 08, 2017

The Philippines House of Representatives has moved closer to including casinos as part of its Anti-Money Laundering Act (AMLA).