Senator Sherwin Gatchalian has emphasized the need for continued efforts to eliminate Philippine offshore gaming operators (POGOs) and their associated activities, following the expiration of the deadline for all operators to cease operations by December 31st, 2024.
According to The Philippine New Agency, Gatchalian highlighted the urgency of addressing the criminal syndicates that have emerged as a result of POGO operations. “We must remain committed to eradicating these threats to ensure a safer Philippines for all citizens,” he stated.
The senator expressed concern that many POGOs are rebranding themselves as legitimate businesses, such as business process outsourcing (BPO) firms, resorts, and restaurants, in order to disguise their illegal activities. “It is crucial for law enforcement agencies, in collaboration with local government units and the public, to stay vigilant against these disguised POGO entities,” he urged.
Gatchalian cautioned against complacency, noting that the transformation of POGOs could continue to jeopardize public safety and order. He referenced data from the Bureau of Immigration (BI), which is currently working with various agencies to track down approximately 11,000 former POGO employees who are facing deportation.
In a recent statement Immigration Commissioner Joel Anthony Viado emphasized that harboring illegal aliens is a serious violation of Section 46 of the Philippine Immigration Act of 1940, which prohibits bringing, concealing, or aiding illegal aliens.
Those remaining will be arrested and face deportation proceedings, with no exceptions for those who assist them in staying illegally.
Singapore’s Resorts World Sentosa (RWS) has appointed Brian Ho as its new Vice President of Sustainability, succeeding Loh Su Kim. Ho steps into the role as part of RWS’ continued commitment to advancing its sustainability efforts.
Brian Ho
Ho shared the news of his appointment on LinkedIn on Tuesday, January 7th. In his new position, he will oversee the development and execution of RWS’s comprehensive sustainability strategy, working to set and meet sustainability goals for the integrated resort, which is operated by Genting Singapore.
Before joining Genting Singapore, Brian Ho held the position of sustainability leader for Southeast Asia at Deloitte.
In November of last year, the resort’s casino license was renewed for just two years, a shorter term than usual, following an assessment of its tourism performance from 2021 to 2023, which was deemed “unsatisfactory.”
In addition, the resort is undergoing significant renovations, including work on a hotel tower and retail mall, while also advancing its ambitious $5 billion “RWS 2.0” expansion project.
The Indian Supreme Court will hear a case on January 10th regarding whether to grant a stay on show cause notices issued to online gaming companies over retrospective GST tax demands.
Earlier this week, reports indicated that several Indian gaming firms are appealing to the Supreme Court for interim relief from retroactive GST demands. These companies, fearing coercive action from tax authorities, have requested the stay until a final decision is made.
The court has agreed to hear the matter, which may also include setting a date for a final hearing.
The total tax demand on these e-gaming firms is estimated at Rs1.08 lakh crore (Rs10.8 billion or approximately $130 million).
Last year, the Supreme Court agreed to hear appeals against the retrospective application of a revised 28 percent GST rate imposed on online gaming companies.
The firms are challenging the tax department’s decision to impose this tax on the full value of bets placed before October 1st, 2023. Given that numerous petitions are pending in various high courts, the Supreme Court consolidated all cases for a definitive ruling.
In August, changes to the GST Act added online gaming to the list of taxable actionable claims—along with lottery and gambling—subject to the 28 percent tax, set to take effect from October 1st, 2023. The tax is levied at the point of deposit, regardless of whether the games are based on skill or chance. The government has argued that this liability was “pre-existing” and has only been “clarified,” not altered, by the amendment.
These changes have led to a flood of GST notices for gaming companies, with demands now far exceeding their earnings. The companies had expected the new tax rate to apply from October 1st, 2023, onward.
Following the update regarding the appeal, shares of Indian gaming operator Delta Corp surged more than 7 percent in Wednesday trading.
Maybank has downgraded its rating for Bloomberry Resorts, a top Philippines land-based casino operator, to ‘Hold’, while cutting its revenue projections for both 2024 and 2025.
This move reflects key risks to the company’s performance, including the ongoing weakness in Solaire Entertainment City’s gaming revenue, driven by a decline in both VIP and domestic Chinese players. Furthermore, analysts note that Bloomberry Resorts faces increased competition from new casino developments and the growing prominence of e-gaming, which could further pressure its profitability.
In its latest update, released on Wednesday, Maybank outlined several challenges Bloomberry Resorts is expected to face in 2025, particularly at its Solaire Entertainment City casino. The company is anticipated to experience continued weakness in this segment, though the full-year contributions from the recently opened Solaire Resort North and the potential launch of an e-gaming platform in the third quarter of 2025 may offer some offset. However, Maybank has not yet factored the impact of the e-gaming platform into its forecast.
Solaire Resort North, a new luxury development in Quezon City, officially opened on May 25th, 2024, and is expected to play a key role in the company’s performance going forward.
In light of its revised earnings outlook, analyst Raffy Mendoza has lowered its consolidated net revenue forecasts for Bloomberry Resorts by 2 percent for FY24 and 17 percent for FY25.
Maybank now expects Bloomberry Resorts’ FY24 net income to decline by 71 percent, with a modest 4 percent recovery projected for FY25.
The revised FY25 revenue forecast now stands at PHP50.1 billion ($857 million). Alongside this, the firm has raised its operating expense estimates, primarily due to increased depreciation and higher selling and advertising costs.
Despite a significant drop in the company’s share price—down 42 percent to PHP4.46—Maybank indicates that Bloomberry Resorts’ stock is currently trading at an FY25E EV/EBITDA multiple of 7.4x, slightly above the regional peer average of 7.0x. This suggests that the stock is fairly valued, with limited upside potential. Maybank’s revised target price implies an EV/EBITDA of 7.7x, indicating minimal further gains.
3Q24 performance signals risks ahead
Bloomberry Resorts’ latest financial update in November signaled further risks, as in 3Q24, despite the group’s GGR reaching PHP16.26 billion ($277.11 million), the company registered a loss of PHP470 million ($8.01 million) due to higher depreciation and interest expenses.
Both Entertainment City and Solaire North saw declines in their performance during 3Q24. At Entertainment City, VIP rolling chip volume dropped by 25 percent year-on-year to PHP109.8 billion ($1.87 billion), while VIP GGR fell by 10 percent to PHP3.6 billion ($61.36 million).
At Solaire North, VIP rolling chip volume was PHP2.2 billion ($37.5 million), but VIP GGR turned negative, recording a loss of PHP19 million ($323,800).
At that time, Enrique Razon Jr., Bloomberry’s Chairman and CEO, highlighted that the business environment in Entertainment City remained challenging due to a decline in gaming volumes.
However, he noted that the gaming volumes from their Quezon City property more than compensated for this weakness, leading to a 22 percent year-on-year increase in total Philippine gaming revenues for the quarter. He also emphasized that after its first full quarter of operations, Solaire North’s ramp-up was still on track.
Australia’s The Star Entertainment Group has seen a significant reduction in its available cash, dropping to AU$70 million ($43.56 million) as of December 31st, 2024.
In a recent filing with the Australian Securities Exchange (ASX), the company informs that its available cash fell by AU$79 million ($49.16 million) from its last report at end-September 2024.
The group now notes that it ‘continues to explore other liquidity solutions’ aside from working to fulfill conditions to draw AU$100 million ($62.23 million) under the second part of an AU$200 million ($124.46 million) New Facility negotiated to keep the company afloat.
The group has been facing an ongoing financial crunch in the wake of the two Bell inquiries into its suitability to hold a casino license.
The group notes that its reduction in available cash ‘reflects the continued difficult trading conditions’ highlighted in its Annual General Meeting last November, alongside ‘essential capital expenditure […] upfront fees’ linked to its new loan, as well as the first AU$5 million ($3.11 million) installment of the AU$15 million ($9.33 million) fine imposed by the New South Wales Independent Casino Commission (NICC) last October after the results of the second Bell inquiry.
The group is further weighed by ‘significant legal and consulting fees, ongoing transformation and remediation activities, and joint venture contributions’.
The Star’s financial woes became particularly apparent around the opening of its new Queen’s Wharf Brisbane property, which was developed alongside Chow Tai Fook and Far East Consortium – Hong Kong-listed entites who, collectively, are 50 percent joint venture partners in the project.
Back in November, The Star’s leadership affirmed that its remediation plan would allow “meaningful change by the end of March 2025” – a deadline set by the NICC for overseeing operations at its Sydney casino property.
Macau’s gaming watchdog has named an interim replacement for its top position, elevating former Deputy Director Lio Chi Chong to the role of Acting Director.
The change was indicated in dispatch by the Secretary for Economy and Finance in Macau’s Official Gazette on Wednesday.
Lio Chi Chong, Acting Director, DICJ
While only published on January 8th, the dispatch dates to December 26th, a week after Macau’s new leadership assumed their roles.
However, Lio Chi Chong was effectively acting director as soon as former Director Adriano Marques Ho left his role, given the subdelegation of powers granted in his role as Deputy Director.
Lio Chi Chong had previously served as DICJ’s acting director when needed for specific instances when the Director was not available.
Adriano Marques Ho, former Director of the DICJ
The former Gaming Inspection and Coordination Bureau (DICJ) Director Adriano Ho, was shifted to the role of Commissioner of Macau Customs on December 20th, effectively leaving his position vacant.
The most recent Directors of the DICJ had been pulled from outside of its internal structure, with Adriano Ho (who started in mid-2020) being a former advisor to the Secretary for Security and Paulo Martins Chan (who served from 2015 to mid-2020) being a former Public Prosecutor.
Tai Kin Ip, Secretary for Economy and Finance
It remains to be seen whether the trend will continue and an official will be pulled from another government department to assume the directorship in the long-term.
Despite officially being the gaming oversight body, the DICJ was left largely toothless after a series of legislative changes in recent years, which shifted much of the decision-making powers over to the Secretary for Economy and Finance.
This role was taken over by Tai Kin Ip last December, who has been with the Macao Economic Services since 1995 and most recently served as the Director of the Economic and Technological Development Bureau.
Good morning. Money always appears to be worth a little bit less every day. However, in the case of China, this is a real concern, as the depreciation of its currency has multiple ripple effects. For Macau, wholly dependent on its main consumer source, this has a particular impact on tourism and retail spending, pressuring gaming operators. However, predictions are still strong for GGR in the gaming hub in 2025, with Seaport estimating an 8 percent yearly uptick. Meanwhile, in Thailand, the government is pushing forward discussions around legalizing online gambling, dialing in on potential tax revenue.
Macau’s over-reliance on Chinese consumption is coming even more to the forefront as China’s currency, the renminbi, is suffering sharp depreciation. Weakened consumer sentiment had already affected the amount punters were willing to place on the table. But now this has expanded into non-gaming spending on tourism and retail. Meanwhile, operators still have hefty obligations to the government, and must walk a tightrope to keep their financials afloat.
In 2024, 1xBet achieved significant breakthroughs and successes, solidifying its position in the iGaming industry. The brand secured major partnership deals, received prestigious awards, and showcased its innovations at the world’s leading forums.
Altenar, a leading sportsbook provider is bringing its global expertise to Asia, looking to expand its operations. Since 2011, Altenar has powered hundreds of online sports betting sites worldwide and is a major B2B provider in Europe and Latin America licensed markets.
The Fontana Resort and Country Club has had all of its operations, including those of its casino ‘indefinitely suspended’.
According to local media reports, the Clark Development Corporation (CDC) issued a cease and desist order for both Fontana Resort and Country Club Incorporation (FRCCI) and the Fontana Development Corporation, including the operations of sub-lessees.
This includes the casino operation, as well as the 52-hectare property being managed by the Korea Country Club.
In a social media post on Facebook, the CDC noted that the measure was due to ‘numerous violations committed by FDC, including failure to meet financial obligations, non-fulfillment of commitments under the Lease Agreement, and non-compliance with the Fire Code and National Building Code, among others’.
Failure to comply with the cease and desist order could result in the ‘termination and the enforcement of the provisions of the signed 31st August 2016 Consolidated Lease Agreement’.
The group has reportedly already received two cease and desist letters from the CDC – in 2016 and in 2020 – but both suspensions were eventually lifted.
The 2016 suspension was ordered by then-president Rodrigo Duterte – encompassing the main casino and 15 casino rooms, alongside orders for the arrest of gambling mogul Jack Lam, for alleged bribery and economic sabotage, indicate reports.
The casino was shut down due to lack of permits as well as legal and immigration documents, while authorities were also investigating claims of illegal gambling.
The current shut down is believed affect more than 500 employees at the property, including about 230 from the casino.
PlayCity Casino and Konami Gaming announced the release of player-favorite Konami casino slot games for real-money wagering on playcity.com throughout Mexico.
Players nationwide can tap into popular casino slots including Cobra Hearts™, China Shores™, Chili Chili Fire™, and All Aboard™ Dynamite Dash™ by mobile, tablet, or desktop device. These games and more are powered by Konami Gaming’s remote gaming server (RGS), with dozens of casino classics and new hit releases. This launch signals an important expansion on the relationship between PlayCity Casino and Konami Gaming, which have partnered for years.
“We are very excited to add Konami games to our online platform. We know the brand from our land-based business and really look forward to a successful partnership online,” said José Fernando López Perez, product director at PlayCity Casino.
Konami Gaming and PlayCity Casino have long partnered in the land-based sector, where Konami games have historically stood apart for player performance, engaging mathematics, and machine quality.
Eduardo Aching, VP of International Gaming Operations at Konami Gaming
In addition to playcity.com, PlayCity Casino operates 17 traditional land-based casino destinations across 11 states. PlayCity’s investment in omni-channel gaming gives guests the opportunity to enjoy a diverse mix of casino entertainment at the casino and online from anywhere in the country.
“Across the business, PlayCity Casino has prioritized player convenience, service, and engagement, with outstanding success. This launch is the latest example of the organization’s commitment to providing safe and easy entertainment access, quality, and variety, which Konami is thrilled to support with a long list of fan-favorite content,” said Eduardo Aching, vice president of international gaming operations at Konami Gaming, Inc.
The International Gaming Standards Association (IGSA) has announced that Okada Manila operator Universal Entertainment has joined as a new Silver/Vertical member.
According to an IGSA release, the group’s president noted that “IGSA is very excited to welcome Universal Entertainment as a member of GSA Japan and a part of the broader association. We believe IGSA Standards can play a significant role in Universal’s growth”.
Speaking of Universal Entertainment’s integration into the standards body, Tomohiro Okada, President of the group, noted that “We are delighted to be a part of IGSA, and we look forward to participating in the research and development of electronic gaming machine systems in the industry”.
Aside from its involvement in Okada Manila, Universal Entertainment also produces and sells Pachislot and Pachinko machines and peripheral equipment.
The IGSA defines itself as the ‘largest technical standards development organization dedicated to the creation and evolution of standards and protocols to the betterment of the global gaming industry’.
