Hong Kong-listed Shin Hwa World says it has decided not to “seek further extension” for the provision of a remedy by the Philippines’ gaming regulator (that became due on 30 June 2023), meaning that the company will lose its provisional casino license in the Philippines.
According to a filing on Friday, the company disclosed the decision through an “inside information” announcement.
Shin Hwa World admits it has “yet to identify a suitable lease of land” to develop an integrated resort (IR) in the Philippines to satisfy the requirements of the provisional casino license within the prescribed period, as required by the Philippine Amusement and Gaming Corporation (PAGCOR).
In light of the prevailing market conditions and the feasibility of fulfilling the requirements set out under the provisional license, Shin Hwa decided to remain focused on its business in Jeju Shinhwa World, an integrated resort in Korea.
Shin Hwa stresses that “it doesn’t rule out the possibility of participating in any other project(s) in the Philippines in whatsoever scale or nature, to be carefully assessed and determined in future,”, pledging that it will continue to explore new business developments and investment opportunities to “broaden its income stream in order to drive forward its growth momentum”.
Shin Hwa was known as Landing International when it announced its IR plan in 2018. Initially, the group had been planning the development of a $1.5 billion IR with a casino, luxury hotel, indoor waterpark, cultural theme park, movie theme park, and convention center.
After signing a land lease with the Philippines’ culture and tourism arm -Nayon Pilipino Foundation (NPF), then-President Rodrigo Duterte had fired the entire NPF board, citing what was described as a “grossly disadvantageous” 50-year land lease deal and later revoking the lease entirely.
COVID-19 halted plans for the company to find a new development site.
Shin Hwa World is also a Korean foreigner-only casino operator. According to the group’s 2022 results, Shin Hwa was able to significantly narrow its losses, to just $27.63 million, from $134.4 million in 2021. However, revenue failed to rise significantly on a yearly basis, topping just $175.8 million. This was largely driven by the steady growth of domestic consumption in the group’s Jeju Shinhwa World’ property.
