Inside Asian Gaming
inside asian gaming November 2014 30 T he Philippines has a long relationship with the US and ambitious plans to expand its gaming industry, but it doesn’t have any US casino brands. Caesars Entertainment has famous US casino brands—Caesars, Harrah’s and Horseshoe among them—and Asian expansion ambitions. For years, Caesars and the Philippines have seemed like a natural fit. Caesars believes the time has come for the Las Vegas-based giant, the largest operator in the Americas by number of casinos, to build an integrated resort in Manila. But not so fast, says the Philippines’ gaming regulator. President Benigno Aquino heard the case for the resort from Caesars Chairman and CEO Gary Loveman during a visit to the US in September. Caesars President for International Development Steven Tight, who also attended, says the meeting followed discussions “over the past couple of years” about a Manila IR with the state-run Philippine Amusement and Gaming Corporation (PAGCOR), which regulates the industry and operates 11 Philippine casinos. PAGCOR confirms that Caesars has submitted a “concept proposal” for which the agency would need to create a new private gaming license in Manila in addition to the four issued for the PAGCOR-sponsored Entertainment City resort complex on Manila Bay and the license underpinning Resorts World Manila, currently the country’s largest Following on South Korea, Caesars bids bold for the Philippines — a billion dollars — and an Asia strategy takes shape By Muhammad Cohen Hail Manila casino, located opposite the city’s Ninoy Aquino International Airport. “The timing is really linked to the success of President Aquino’s reforms in the Philippines,” Mr Tight says. “The business environment in the Philippines has improved significantly under President Aquino. His reforms have been effective. We’re more comfortable with the business environment from a compliance perspective. The Philippines is now rated investment grade, and that’s another factor that gives us comfort, that we’re able to operate within our own levels of integrity and compliance standards under President Aquino’s administration.” The fact that two gaming companies that operate in the Philippines through affiliates, Malaysia’s Genting Group and Australia’s Crown Resorts, are expected to be granted Nevada licenses for large-scale casino developments on the Las Vegas Strip, also suggests that the credibility of the Philippines has improved in the eyes of international gaming regulators. “That reflects the comfort that the large integrated resort operators have in pursuing the Philippines at this time,” says Mr Tight. “PAGCOR has been exerting serious effort since 2010 to establish a proper regulatory framework,” the agency’s Vice President for Licensing and Development Francis Hernando says. “In particular, Feature In Focus
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