PAGCOR sees drop in local casinos' revenue as world-class operators open in Manila

The revenue of local casinos will suffer from the onslaught of foreign gaming operators setting up shop in the country, an official of the Philippine Amusement and Gaming Corporation (PAGCOR) said Tuesday.

 

"From the operation standpoint of PAGCOR, the quality of our casinos is not as good as the world-class international resorts,” Francis Hernando, PAGCOR Licensed Casino Development Department vice president, told reporters after Tuesday's Senate hearing on the PAGCOR Entertainment City. 

 

“So we think that there might be some decrease in the revenues of some of our casinos,"  Hernando added.

 

His statement comes weeks before Solaire Resort and Casino opens its hotel in the multibillion-dollar casino and tourism complex Entertainment City next March.

 

"I think for our casinos in the immediate vicinity of Entertainment City, our operations group is bracing for the effects of the opening of the second resort. The first resort is Resorts World and we know from the past that it has affected some of our operations," said  Hernando. 

 

As a result of Solaire Resorts operation, PAGCOR may close two of its own casinos, Hernando noted, but did not elaborate.

 

"In fact we're reviewing the leases at this point, whether we want to renew it or discontinue the leases," he said.

 

However, the employees would not be affected because PAGCOR IS "expanding elsewhere," said Hernando.

 

"Some will be assigned outside Metro Manila because we're expanding outside Metro Manila then maybe some farther away from Entertainment City area," the PAGCOR official noted.

 

Increasing the pie

 

More casinos in Entertainment City casinos would "increase the pie," Hernando claimed. "What we're hoping is to be able to share in that large  international pie of tourists, he said.

 

“Those who go to Macau and Singapore, perhaps they might spend one or two times a year in Manila. We provide an alternative as well," he added.

 

Each locator in the Entertainment City is required to spend at least $1 billion, Hernando noted.

 

"Right there it's $4 billion in commitment. And then the common areas, the infrastructure, easily between $500 million to $1 billion, so we're talking about $5 billion at full capacity," he said.

 

In terms of employment PAGCOR is looking at 6,000 to 7,000 jobs per resort.

 

"So that's 35,000 jobs by 2017... and then there's that times four multiplier for indirect labor—construction worker, services. Maraming employment," he said.

 

In a separate interview Tuesday, Senate games, amusement, and sports committee chair Sen. Koko Pimentel said he was "impressed" with the presentation of the locators in Entertainment City.

 

"I am convinced na so far so good [but] let's wait for the actual implementation on the opening day let us see if everything will flow smoothly," he added. — VS, GMA News