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

PhilippinesSunday, Oct 22, 2017

The Philippines casino industry saw its gaming revenue rise 6.5 percent year-on-year in the second quarter of 2017, reaching P39.1 billion (US$759 million).

PhilippinesThursday, Oct 19, 2017

Five members of a casino loanshark syndicate were arrested by the Philippine National Police on Wednesday, facing charges of kidnapping and illegal detention, local media reports.

PhilippinesWednesday, Oct 18, 2017

The Quezon City government says they have not received any formal applications for the development of a casino in the city.

PhilippinesMonday, Oct 16, 2017

GGR and company EBITDA for three integrated resorts in Manila are expected to decline quarter-on-quarter in the 17Q3, according to analysts from Morgan Stanley.

PhilippinesMonday, Oct 16, 2017

Tiger Resort, Leisure and Entertainment is in talks to acquire holding firm Bright Kindle Resources and Investments Inc (BKR) for the prospective backdoor listing of its Philippines integrated resort.

PhilippinesMonday, Oct 09, 2017

The Philippine Charity Sweepstakes Office has vowed to clamp down on illegal gambling after discovering that it is losing almost a third of its revenue in its small-town lottery business to illegal operations.

PhilippinesThursday, Sep 28, 2017

E-games provider PhilWeb Corporation unveiled a new logo on Wednesday, reflecting the company’s license renewal under the leadership of chairman Gregorio “Greggy” Araneta III.