PH to give Singapore a run for its money

The Philippines may soon become the world’s second largest gaming market, next to Macau, with about $6 billion to $7 billion in gross gaming revenues in around five years, the chief of state-controlled Philippine Amusement and Gaming Corp. said Tuesday.

In a Philippine Investment Forum organized by financial magazine Euromoney, Pagcor chair and CEO Cristino Naguiat Jr. said gross gaming revenues would expand from $2.2 billion in 2013 as more properties open in Pagcor Entertainment City.

This Las Vegas-inspired gaming strip alone will employ about 40,000 people, Naguiat said.

In about five years, Naguiat said the projected gross gaming revenues of $6 billion to $7 billion would be “comparable, if not better” than Singapore’s and potentially topple Las Vegas’ gaming output.

He said the Philippines won’t likely overtake Macau as the world’s largest gaming market but becoming second or third largest was feasible.

Enrique Razon Jr., chair and chief executive officer of Bloomberry Resorts Corp., which developed Solaire Resort and Casino, the first integrated gaming hub to open in Pagcor City, said this goal of becoming the world’s second largest market was feasible in five years.

He also sees the Philippines following the Las Vegas rather than the Macau business model, which means nongaming revenues would soon outstrip gaming revenues.

Razon said Las Vegas generates about $20 billion in nongaming revenues compared to $6 billion in gaming revenues.

Naguiat agreed that with the country’s vast talent pool, the Philippines could become “the Broadway of Asia.”

In an interview after the forum, Naguiat said the goal to become Asia’s second largest gaming hub would likely happen by 2017 or 2018.

Asked about gaming taxation, Naguiat said Pagcor would respect the contract with the gaming operators.

“Whatever is there in the written contract, we will respect it,” Naguiat said in the interview.

Naguiat said it was just a question of how much of the funds would go to Pagcor and the Bureau of Internal Revenue.

He said this taxation issue would likely be resolved “in a few months.”

Currently, all private licensees pay a 5 percent franchise tax on gross gaming revenues.

With a new ruling from the Supreme Court, the gaming firms were put at risk of being subjected to the regular corporate income tax.

“Hopefully there will be an acceptable solution shortly,” Razon said. “We already pay 5 percent franchise and gaming tax so we expect the solution to be in line with that.”