Net Benefits
On tax at least, the Manila schemes should be competitive with Macau
As well as the potential goodwill created by local resort developers being able to raise money locally, the tax burden on the new Philippines resort schemes will also be lower than that found in Macau (which comes in at just under 40% of the gross when payments for social schemes are included). It will however be less competitive than Singapore’s regime, where the IRs will pay 15% of gross revenue on the main floor as direct tax, but only 5% on ‘premium’ play (i.e., that of high-rollers and players brought in by junkets).
Singapore will however charge its citizens and permanent residents a fee—S$100 (US$65) per day or S$2,000 per year—to enter the IRs, while admission for tourists will be free.
Under the terms of reference supplied by the government-owned operator-cum-regulator Pagcor (the Philippine Amusement and Gaming Corporation), the new Manila resorts will pay the following taxes:
– 15% of gross gaming revenues generated from high roller tables;
– 25% of gross gaming revenues generated from non-high roller tables;
– 25% of gross gaming revenues generated from slot machines;
– 2% of total gross gaming revenues generated from both high roller and non-high roller tables, for the restoration of cultural heritage.
In addition, Pagcor will charge junket operations 15% of gross gaming revenues generated from both high roller and non-high roller tables.
“We are trying to come up with the best environment for our investors and at the same time to do the best for our country,” says Rafael Francisco, President of Pagcor.
“The Tourism Act of 2009 means the government will definitely support the Entertainment City and other projects in the pipeline.”
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