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Philippines – Philippines gambling sector confused by Duterte’s suggestion of ‘more’

The ban on new casinos in the Philippines could be lifted by President Rodrigo Duterte after he encouraged PAGCOR to increase gaming activities in the country.

Speaking during his fourth State of the Nation Address, President Duterte addressed Philippine Amusement and Gaming Corporation (Pagcor) Chairperson Andrea Domingo and encouraged her to embrace more gaming activities in the country.

He is reported to have said: “Magpasugal ka pa nang marami” which translates as ‘push gambling some more.’

The PAGCOR leader has since said she will need to sit down with the President to understand exactly what he meant.

However, Presidential Spokesperson Salvador Panelo said: “That [lifting the ban] would be the logical consequence of what he said,” according to the SunStar Philippines.

As he seemingly gave with one hand, Duterte took with the other, issuing a ban on all gaming schemes operated, licensed, and franchised by the Philippine Charity Sweepstakes Office (PCSO) due to ‘massive corruption.’

“Pending investigation, lahat ho ng laro ng (all games such as) lotto, STL (small town lottery), Peryahan ng Bayan, or whatever nature, that got their franchise from government through PCSO are, as of today, suspended or terminated because of massive corruption,” he explained.

Spokesperson Panelo added: “The President has ordered all licences, concessionaires, and franchises issued by the PCSO are all recalled, cancelled and withdrawn, effective immediately. All law enforcers are directed to implement the President’s directives with dispatch and without exception.”

The ban on Lotto operations was then lifted days later.

Royina Garma, Philippine Charity Sweepstakes Office (PCSO), Vice Chairperson said: “The resumption of the lotto draws shall take effect today, July 31, 2019. The PCSO continues its endeavour to fight and eradicate illegal gambling and corruption as the agency thrives in serving the public, especially those who are in dire need of help,” she said.

“The PCSO supports the President in eradicating corruption and illegal gambling activities. The agency programs, projects and activities are aligned to the objective and goal of our national government,” she added.

Other types of gaming schemes with licenses granted by PCSO such as STL, keno and Peryahan ng Bayan remain banned ‘pending the investigation of illegal activities and corrupt practices related thereto until the Office of the President evaluates the results of said probe.’

Ms Garma called on PAGCOR to fund the difference in funding to Commission on Higher Education (CHED) and the Philippine Sports Commission (PSC) programs. “President Rodrigo Roa Duterte is authorised to order, in writing, the Philippine Amusement and Gaming Corporation to further augment the funding of the PSC and CHED,” said Ms Garbin. “It is urgently necessary that the operations of the programs and projects of the PSC and CHED proceed unhampered, considering that the preparations for this year’s hosting of the Southeast Asian Games are underway and the collegiate academic year for most higher education institutions commenced last June and the remaining to commence in the month of August,” said Ms Garbin.

The news follows PAGCOR’s release of Q1 results where gaming revenues increased to Php36.57bn (US$714.5m) in the six months to 30 June 2019, a year-on-year increase of 9.3 per cent.

Leisure & Resorts World Corp (LRWC) will be waiting in the wings to find out exactly what the President meant. It who has just raised P4.4bn ($86m) to expand its Philippine operations.

It is looking to buy 10 to 15 existing locations for its bingo, e-casino and slot arcade operations but also still has one eye on a casino development in Boracay. It had partnered with Macau operator Galaxy Entertainment in a bid to build a US$500m integrated resort on a plot of land it purchased Boracay.

The company stated: “The capital infusion will not only help sustain LRWC’s dominance in the gaming sector through expanded footprint, but will also greatly strengthen its financial position. As previously disclosed, a large portion of the proceeds from the private placement will be used to refinance the company’s existing obligations which will improve cash profit through reduced interest expenses.”

LRWC currently runs 192 sites and generated income of P480m($9.4m) for in 2018.