Inside Asian Gaming

Country report Philippines Non-gaming attractions at Subic. tionable disbursement procedures. I was also surprised to learn that Pagcor's contributions to the President's Social Fund do not pass through the National Treasury and most ofits finances are not covered by any auditing mechanism by the Commission on Audit." Other issues that have made the news lately are alleged anomalous rental pay- Casino Filipino Mimosa ments made by Pagcor to the Hyatt Ma­ rina Hotel Casino in Manila, and dona­ tions made by Pagcor to the Catholic church, which amounts to government funds being indirectly routed to the church - a violation of the principle of separation of church and state. The charges of corruption could be politically motivated, but critics need only point to the furniture in Pagcor casinos, manufactured by Pagcor itself, and dealers sitting idly by at tables with arms crossed, to support their claims of inefficiency. Gambling in the Pag­ cor-run Casino Filipino outlets can be a kitschy and rowdy affair, but if you're looking for contemporary Vegas-chic, head on over to Macau. Diamond in the rough The privately-nm Subic Diamond Ca­ sino, which opened in mid-March, was one of the few quality establishments iri Inside Asian Gaming stopped by on its tour of the Philippines. Opened in mid-March, the casino decor is bright and contemporary, with some elements - notably the carpet - clearly inspired by the Sands in Macau. The staff is well trained, composed and strictly observes security protocol. The band harmonizes and the free drinks are well blended. The Subic Diamond is a far cry from some ofthe roughhouse Casino Filipino establishments run by Pagcor. That's not to say private ownership equates to a well-run casino. Just across the street from the Diamond sits the Gambling in the Pagcor-run Casino Filipino outlets can be a kitschy and rowdy affair, but if you 're lookingfor contemporary Vegas-chic, head on over to Ma­ cau. Legenda, which has been operating on a temporary license since 1999, when its original license to exclusively oper­ ate a casino in Subic was revoked for non-payment of debts amounting to 9 billion pesos (US$170m) - interest on which has been compounding since. Tourism development in Subic Bay had been stalled since 1999, as hotel and en­ tertainment investors, fearing Legenda could shut at any time, ending one of 4 Inside Asian Gaming September 2005 Subic's chief tourism draws, were re­ luctant to come in. The opening of the Subic Diamond thus brought renewed confidence to Subic, claims Ben Lee, casino projects manager of Subic Dia­ mond Entertainment Corporation. "While we were building, and after we finished building, we started see­ ing a lot of new things coming up. Like around that pier one, those new Korean hotels came up very quickly, and there are a couple of new restaurants. Then the Japanese got interested in those con­ dos, and behind the hotel next to pier one there's another 100-room Korean hotel coming up," says Mr. Lee. And what will happen to Legenda now that Subic Diamond is on the scene? "They're in the courts undergo­ ing bankrnptcy proceedings by Pagcor," explains Mr. Lee. "Like Mimosa [a once privately-run casino in Clark, now taken over by Pagcor], Pagcor would probably take over the running, and try to sell it offas a going concern. Base of operations Subic Bay, a former US naval base, like Clark Air Base, was designated a special economic zone (SEZ) follow­ ing the US pullout in September I 992. Subic's port facilities and duty free sta­ tus have attracted several expo1t-ori­ ented industries and foreign investment to Subic. Industry in Clark has failed to take offbecause ofthe lack ofnon-golf­ ing attractions, but investments in tour­ ism are being driven by the arrival of low-cost airlines using Clark to access other destinations in the Philippines. It'll be neck and neck between Subic and Clark. Clarks got no natural attractions, but what they do have is easy access to Manila. Its only an hour and a hal f by roadfrom Manila to Clark. Its two and a hal f hours from Manila to Subic. Subic, meanwhile, has sparse air connections, but water sports aplenty. Mr. Lee observes: "Clark is not a tourist spot, it's a jumping off point." Subic, on the other hand, is a tourist spot. It's always been popular with the locals. Weekends, long holidays, this place is full." Mr. Lee believes the gaming action in the Philippines will be centered on the