Pagcor license renewal critical (Philippines)

(source: September 10, 2006)

Pagcor license renewal critical

By Elaine Ruzul S. Ramos

The expiration of the 25-year franchise of Philippine Amusement and Gaming Corp. in 2008 is a major deterrent to prospective casino investors in the Subic Bay Freeport, a government official said over the weekend.

Subic Bay Metropolitan Authority Administrator Armand Arreza told reporters several foreign groups signified their interest to put up casinos within the Freeport but were reluctant to do so pending the extension of Pagcor’s franchise.

“This creates uncertainty for prospective casino investors,” he said.

Casinos entail investments of at least $100 million and investors are naturally wary of putting that much money with the uncertainty in Pagcor’s franchise.

Pagcor has the sole franchise to grant licenses to operate casinos in the country for 25 years since 1983.

Arreza said US-based casino operators had been looking at Subic as an alternate location in the region.

He said the Philippines, especially Subic, was the next logical location for new casinos since Macau in China was considered too expensive.

Date Posted: 10-Sep-2006