Inside Asian Gaming

inside asian gaming April 2015 16 Insights projects. There’s been healthy economic growth in our economy. But another financial crisis could affect the ongoing projects. What about the situation with Manila Bay Resorts, the project led by Kazuo Okada? Basically, they’re in material breach of the contract. Based on the contract [which granted a provisional gaming license], they should have been finished by March [last month]. They have given a performance bond [of P100 million]. By not complying with the terms of the contract, they risk forfeiture of the bond. So far, everyone [else] has been running more or less on time. But Manila Bay Resorts’ time frame is two more years. In that case, the proposition of a $10 billion [gaming] market is unlikely to be hit by 2018. Every year, we still project double digit growth. Off a low base, VIP is up 50% [for 2014], and with City of Dreams that’s a no brainer again this year. Overall growth should be more than 16% [the 2014 growth number]. Where will the growth come from? Everybody is saying their focus is on the Chinese market. We have a very small How will the accelerating expansion of gaming in the region—in Macau, in Vietnam, in Cambodia and in South Korea— impact the Philippines? Macau will always be number one. That’s a given. Vietnam is too far to matter in this market. Korea is foreign players only. For visitors, we have so much to offer in the Philippines. We have historical sights in the Philippines, we have beautiful beaches. As the advertisement says, “It’s more fun in the Philippines.” Tourism is showing double digit growth, but from a low base. There haven’t been official figures yet, but the total was about 5 million last year. We’re forecasting 6 million this year. What changes has Pagcor made as a regulator that have helped create confidence in the Philippines as a gaming jurisdiction? The first thing is transparency. Everything we do is out in the open. Second, there’s a level playing field for everyone. We have to respect what has been agreed to under the previous regime even though that was done before our team came in. Between Pagcor and licensees, everything should be win-win. The higher the share for them, the higher the share for us: win-win. There will always be some conflicts. When this happens, it has to be discussed, and we have to look for solutions that are beneficial to all. “Until Congress changes our mandate, we will continue as a regulator and an operator. It’s a mandate that the agency has to follow. If the Congress says that Pagcor should just be a regulator and separate or sell our casinos, then we will follow that mandate. But they need to make that decision.” attendance from the Chinese market. We’re starting here from a low base. It’s a no brainer that it will double this year. Our foreign tourism overall is growing. We get a lot of visitors from Korea, from Indonesia, from Japan and ASEAN [Association of Southeast Asian Nations], also from China. We’re not competing against Macau. We just want to be in the loop. Casino Filipino offers table games like baccarat, roulette and craps, among others. Casino Filipino is known for its friendly gaming staff.