Inside Asian Gaming

6 Country report Philippines Inside Asian Gaming September 2005 outskirts of Manila pay lO percent of gross revenues from foreign customers and 60 percent from locals to Pagcor. Legenda has a "sweetheart deal" which sees it pay 15 percent tax on revenue af­ ter all operating expenses. By lumping complimentaries, room and F&B into its expenses, Legenda has completely avoided paying tax since 1999. Fontana pays a IO percent flat tax. Discriminatory terms Private operators inevitably complain of discriminatory terms, but Pagcor clearly recognises the value of casinos bringing in foreign customers. Fiesta was built following the designation of the proposed site as a SEZ. The indus­ try analyst points out: "They did it just for the casino. Otherwise it's right in the middle of a hilly region, with no access whatsoever, except by this little road."There are other unequal terms, such as the costs of the monitoring team. Some operators are required to foot the entire bill for the Pagcor staff monitoring their premises, while oth­ ers are required to pay for overtime and holiday costs (since Pagcor casi­ nos are shut during certain holidays). Questions of propriety "It raises questions of propriety. How can you pay for the people who are sup­ posed to be monitoring you? It's a con­ flict of interest," concludes the regional industry analyst.