Inside Asian Gaming

29 marketing the country as a holiday destination, dispelling negative media images of political unrest and natural disaster. Mr Genuino thinks the first stage of the scheme could increase the number of foreign visitors by at least one third in its first year of operation. IAG understands that Pagcor’s aim is to have its new gaming partners visible as brands in their own right,rather than relying solely on Pagcor branding. However, Mikio Tanji of ARUZE Gaming told IAG :“I think branding is an issue for the negotiations.” Access fees Pagcor plans to charge gaming partners market access fees in lieu of taxes ranging from 25% of gross gaming revenues for slot machines and for non-junket mass market tables (known locally as ‘The Grind’) to 10% of GGR for VIP tables and VIP and non-VIP junkets. There will be an additional 2% levy on non-junket mass market and VIP table GGR for what’s described as “restoration of cultural heritage’. How, though, did Pagcor get these brands to the negotiating table in the first place given the 60:40 ownership law? While it’s true that not even Pagcor can override a provision of the Philippine constitution, there are other laws relating to investment that could make the 60:40 rule redundant for practical purposes. Rules Article 12, Section 2 of the 1987 (i.e., current) Philippine Constitution states: “The exploration, development, and utilization of natural resources shall be under the full control and supervision of the State. The State may directly undertake such activities, or it may enter into co-production, joint venture, or production-sharing agreements with Filipino [sic] citizens, or corporations or associations at least sixty per centum of whose capital is owned by such citizens. Such agreements may be for a period not exceeding twenty-five years, renewable for not more than twenty-five years.” Well that’s clear then—isn’t it? Perhaps not. The constitution only mentions the exploration, development, and utilisation of natural resources. Clever lawyers might argue that only the building phase of the project involves natural resources. Once it’s