Manila, the new Asian gaming capital
With Macau in the midst of an economic crisis due to COVID-19, travel restrictions and the lack of influx of players from China, the capital of the Philippines Manila could become the new Asian gaming capital, or so the country's authorities aspire. An economic bet that, however, is more uncertain and risky than some would like to believe.
Due to its geographical location and recent economic growth, the Asian metropolis Manila could become the next gaming capital in Asia. But whether the Philippine city will succeed in unseating Macau remains to be seen. TheDigitalWay/Pixabay
Okada is a magnificent building located in front of the Manila Bay , in the Parañaque district. The hotel and casino complex is owned by the Japanese billionaire Kazuo Okada , former executive of Wynn Resorts, the Paradise, Nevada-based American firm that owns the well-known Wynn and Encore brands.
Okada raised his fortune in the gaming sector with Wynn and thanks to Universal Entertainment, a company that is dedicated to the manufacture of arcade machines, slots and pachinko , the peculiar game, very popular in Japan, which resembles a pinball machine, although it is mostly used to place bets .
The casino integrated into the Okada Manila complex is operated by Tiger Resort Leisure, the subsidiary of Universal Entertainment and is located in an area known as the E-City, or Entertainment City : particular strip of the Philippine capital in which are located, among others, the City of Dreams resorts, owned by Melco, Solaire Resort & Casino and Westside City Resorts World, owned by billionaire Andrew Tan.
Philippine Entertainment and Gaming Corporation
The Philippine Amusement and Gaming Coorporation (PAGCOR) is the state monopoly of casinos and gambling in general that is under the direct authority of the office of the President of the Philippines. In 2007 the corporation renewed for 25 years its authority on issues of regulation of gambling and the casino business , game and bingo halls throughout the country, also allowing him to enter into joint ventures for the development of the aforementioned E-City, which has led to the spectacular growth of Manila as the Asian gaming capital.
Manila, like Macau, takes advantage of the gambling ban in China, so there are many nationals of this country who travel to the capital of the Philippines simply to enjoy gambling. In addition, the political and commercial relations between the two countries are excellent. About 120,000 Chinese citizens make regular use of the Philippines for their gambling activities, in a business that generates more than 4 billion dollars a year.
Although the coronavirus pandemic also it has hit the casinos hard in Manila, which for the moment will continue to be closed, being largely a state monopoly, business is maintained, at least for the moment.
POGOs a successful strategy
In 2016 PAGCOR started processing licenses for operators offshore , los POGOs (Philippine Offshore Gaming Operators). It is about companies offering gambling services in markets outside the Philippines but they operate under an official license of this country. Mainly, the center is located in the Asian gaming market, and the POGOs would be practically operated exclusively by Chinese citizens.
Gambling is one of the main sources of income in the Philippines and a sector declared strategic by President Duterte . Both the state monopoly PAGCOR and the offshore operations around the POGOs have shown almost immediate success.
However, things could start to go awry. The restrictions imposed on gambling by the COVID-19 pandemic, as well as the planned increase in taxes on gambling-related activities under the Bayanihan Act , which gives President Duterte the authority to reallocate resources in the fight against the pandemic, could be leading to some of the Philippine licensed operators to look for other more conducive legislations .
It would have been reported that more than 50 operators with PAGCOR license would be interested in moving its operations to the Isle of Man , which as is known enjoys a fairly lax fiscal policy.
