Inside Asian Gaming

March 2011 | INSIDE ASIAN GAMING 25 Market Outlook president and chief finance officer Manuel Gana, LRWC will receive 15% of net income or 50% of EBITDA (earnings before interest, taxes, depreciation and amortisation), whichever is higher. LRWC has strong connections among junket operators thanks to its ownership of First Cagayan Leisure and Resort Corporation (FCLRC), which LRWC acquired in 2005. FCLRC has a licence agreement with the Cagayan Economic Zone Authority to develop, operate and conduct internet and gaming enterprises and facilities in the Cagayan Special Economic Zone Freeport. FCLRC receives and processes applications for and issues interactive gaming licences as well as regulates and monitors all operators of Internet gaming in the zone. Whereas Resorts World Manila caters largely to the locals market, LRWC can leverage its junket contacts to draw high rollers from other parts of Asia— particularly Greater China. Meanwhile, APG’s experience working with junkets and VIPs in Macau could also prove useful to the venture. Optimism surrounding the potential new high roller business that could be fostered by the upcoming Belle Grande is probably a major factor behind the recent share price surges of Manila-listed LRWC and Belle. Shares of LRWC were trading at around Php1.80 six months ago, surging to a closing price of Php7.61 on 4th March. Belle’s share price surged from below Php2.50 six months ago to over Php5.0 by 4th March. Pagcor City emerging In addition to progress on the Belle Grande Manila Bay project, Bloomberry Resorts and Hotels Inc (BRHI) recently announced the successful first concrete pouring—signalling the start of structural works—for its own planned US$1 billion project in Pagcor City. The development will feature a five-star, 500-room hotel covering 8.3 hectares, as well as state of the art meeting and convention and ballroom venues, restaurants, and health and fitness facilities. Despite being a newly formed company without any proven track record in the industry, Bloomberry in 2008 was among four companies awarded the right to develop parts of Pagcor City. Bloomberry (formerly Bloombury Investment Holdings Inc) was acquired by port giant International Container Terminal Services Inc (ICTSI) last year. Pagcor City is Pagcor’s vision to develop a multi-billion dollar entertainment centre on prime reclaimed land at the southeastern portion of the Manila Bay in Parañaque City. The long-awaited development—first envisioned almost a decade ago by former Pagcor chairman Efraim C. Genuino—now appears to finally be getting off the ground. The other two companies with development rights in Pagcor City are Aruze Corp of Japan and Genting Group of Malaysia. Largest… for now—Resorts World Manila Work in progress—Belle Grande Manila Bay construction site as of 4th March The vision—artist’s impression of Bagong Nayong Pilipino Entertainment City Manila