Supplier News
Philippines – Confirmation that PAGCOR will sell its casinos
By Phil - 31 August 2016
PAGCOR Chairperson Andrea Domingo has now confirmed that the Philippines government has ruled that PAGCOR (Philippine Amusement and Gaming Corp) must sell its casinos to support the proposed P3.4tn for the 2017 national budget.
Andrea Domingo confirmed: “Finance Secretary Carlos Dominguez has told us to privatize Pagcor-owned casinos. We are now preparing the template for the planned privatisation so we could maximise the benefits for the government. Of the P46bn (US$990m) the state-run firm earned in 2015, half of it came from gaming operations, while licenses contributed the other half.”
In terms of how much the casino division might sell for, she added; “It’s improper even dangerous to give out haphazardly computed estimates. There are several things that have to do be done first just to establish baseline figures. I suppose the DOF will hire independent appraisers.”
Gaming Analyst Rommel Rodrigo of Maybank ATR said: “Pagcor’s move to sell its gaming operations and stay as regulator is a step in the right direction as this will take away potential conflicts of interest. The government will get the highest value if these casinos are sold as one rather than if the assets are sold separately. Bundled as one, these casinos will give buyers a massive advantage.”
Finance Secretary Carlos Dominguez III said: “Pagcor should limit itself in the regulatory functions and should privatise their casino operations, because quite frankly it is very difficult for them to outplay the [privately-owned] casinos.”
In other PAGCOR news, Cristino L. Naguiat Jr., the regulator’s former Chief Executive, has been found liable, along with five PAGCOR officers, by the Commission on Audit (COA) for P234m for lease of a non-existent property.
Vanderwood Management Corporation received payment for the lease of a 6,500 square meter space located within the Museo ng Maynila Complex for a gaming facility despite the fact that the premises to be leased did not yet exist.
