Inside Asian Gaming

November 2017 inside asian gaming 29 In Focus off limits for US operators due to regulator Pagcor doubling as a casino operator plus the country’s reputation for corruption. Nevertheless, during the Benigno Aquino presidency that ran for five years from 30 June 2010, Caesars Entertainment broke the ice, proposing an integrated resort with its own private air terminal at NAIA. Caesars President for International Development Steve Tight says that proposal was scuttled because airport authorities earmarked the proposed IR site for future expansion. Additionally, sources contend the climate of reform that allowed US operators to consider the Philippines has chilled under President Duterte. That’s ironic since President Duterte ordered Pagcor to sell its gaming operations and become a regulator only. In September, Philippine Finance Secretary Carlos Dominguez told local media that valuation studies are underway to price Pagcor’s 17 Casino Filipino properties and that sales of individual units could begin next year. That gives potential investors in Okada many alternatives for entry or expansion in the Philippines. Lawrence Ho said Melco Resorts could look at some Pagcor properties to complement City of Dreams Manila. Melco fits into the relatively small set of potential international buyers for Okada Manila. Melco has no US operations – though sources suggest Native American operators or those licensees in US jurisdictions outside Nevada and New Jersey might find the Philippines palatable – boasts the expertize to operate an IR and could access sufficient capital to buy it. Macau’s Galaxy Entertainment or SJM could also be candidates. Australia’s Star Entertainment or Crown Resorts, New Zealand’s SkyCity or various European operators might view Okada as a beachhead in Asia. Philippine companies would find Okada Manila an easy fit. Bloomberry Chairman and CEO Enrique Razon Jr reportedly indicated early interest but was put off by Okada’s construction quality. All Seasons, the project’s local landowner, could take a bigger stake. Henry Sy, the Philippines’ richest person, holds a share of CoD Manila through Belle Corp and could consider adding Okada, perhaps through gaming vehicle Premium Leisure. Travellers, the partnership between Genting Hong Kong and local developer Alliance Global licensed to build Entertainment City’s fourth IR, could see Okada as a shortcut into the cluster and well away from the RWM tragedy. That’s assuming Universal chooses to sell Okada Manila. At one level it makes sense to dump what took on aspects of a vanity project for the chairman it fired, from the Wynn-like dancing fountain to his name on top. However, Universal faces gargantuan rivals in the consolidating global gaming machine marketplace and a shrinking pachinko window in Japan. Branching out as an integrated resort operator gives Universal a new path to growth, building on its core business.