Inside Asian Gaming

INSIDE ASIAN GAMING MAY 2018 12 GALAXY ENTERTAINMENT GROUP (GEG) will have to find a new home for its US$500 million Philippines integrated resort after the government confirmed that it would not be granting the Macau gaming giant permission to build on Boracay island. Speaking to reporters in Hong Kong, Presidential spokesman Harry Roque said, “There will be no new casino in Boracay,” backing comments by President Rodrigo Duterte stating his opposition to Galaxy’s plan. Duterte had said earlier, “I don’t have GALAXY’S PHILIPPINES IR PLAN REJECTED Solaire sees Bloomberry set 2017 revenue records plans there for casinos. There are enough, there is too much – casino here, casino there. Consider Boracay a land reform area. I will give it to the farmers first. I will issue a proclamation that all of the land will be agricultural.” The news was handed down just three weeks after GEG and its Philippines partner Leisure & Resorts World Corporation (LRWC) were granted a provisional gaming license by gaming regulator PAGCOR for their integrated resort. LRWC also purchased a 23-hectare Philippine casino operator Bloomberry Resorts Corporation reported record revenue in 2017, despite low hold at its flagship Solaire Resort & Casino negatively impacting the company’s fourth quarter results. Gross gaming revenue grew 17% in 2017 to Php44.93 billion (US$863.6 million), site on Boracay upon which the resort was to be built. Ironically, Roque claimed to be unaware that GEG and LRWC had been granted a provisional license by PAGCOR. “I do not know how this will be resolved but as far as Boracay is concerned, [Duterte] wants the people to benefit from Boracay,” Roque added. “Of course, we welcome all investors, but I think the President has already addressed the issue of a new casino in Boracay. There will be no new casino in Boracay.” aided by an 11% increase in VIP volumes, 21% growth in mass table drop and 29% boost in EGM coin-in at Solaire. Non- gaming revenues increased by 40% to also hit a record Php3.34 billion. On a consolidated basis, less the Php11.55 billion in promotional allowances and contra accounts, Bloomberry reported Php33.38 billion in net gaming revenues, 19% higher year-on-year. Solaire’s gross gaming revenues grew 16% to Php44.519 billion – the highest on record since opening – with Korean casino Jeju Sun contributing Php407 million. Company EBITDA for the year was also up 17% to Php12.35 billion, while net profit grew 161% to Php6.06 billion (US$116.5 million) year-on-year including an 81% increase in Solaire’s profitability to Php6.269 billion. Jeju Sun reported reduced losses of Php207 million, an improvement on losses of Php1.14 billion in 2016. “Going into our fifth year of operation has become even more exciting with our 2017 results in sync with the growth trajectories we have aimed for,” said Chairman and CEO Enrique Razon Jr. “This is largely due to our top-notch management team and the thousands of Bloomberry and Solaire men and women, whose tireless drive and dedication keep us notches ahead.” Gross gaming revenue in 4Q17 fell 2% year-on-year and 11% sequentially to Php10.27 billion due to a low hold rate of 1.95%.