Philippines gaming regulator PAGCOR will lay off 665 workers from its casino at Malate’s New Coast Hotel Manila when it hands over control to the hotel’s owner, Hong Kong-listed International Entertainment Corp (IEC), next month.
According to a report by the Inquirer, the affected workers were informed of the layoffs during a town hall meeting in December led by PAGCOR Chairman and CEO Alejandro Tengco, with some having received severance pay in recent days. It is unclear whether any of the employees will be employed directly by IEC in the future.
The layoffs have raised concerns over the potential termination of more current PAGCOR employees when the agency starts privatizing its 43 casinos in the next few years. According to the Inquirer, Tengco admitted that jobs would be disrupted – primarily to allay conflict-of-interest concerns when PAGCOR transitions to becoming a regulator only rather than an operator as well.
As reported by Inside Asian Gaming, IEC is taking control of the casino at New Coast Hotel Manila after signing a new Provisional License agreement with PAGCOR last September. The company, which is also looking to invest up to US$1.2 billion to develop a new integrated resort with casino gaming in Manila, has been co-managing the casino alongside PAGCOR in recent years to gain expertise in casino operations. IEC recently announced an agreement with Malaysian gaming equipment distributor RGB to acquire 382 slot machines for use at its New Coast Hotel casino.
PAGCOR, meanwhile, is coming off a record year which saw the industry generate all-time high gaming revenues of US$5.1 billion in 2023.
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