MANILA, Philippines?Bad news for casino operators and investors.
Philippine Amusement and Gaming Corp. (Pagcor) announced Sunday that it was freezing applications for casino franchises following President Benigno Aquino III?s decision to stem the mushrooming of gambling facilities in the country.
Jay Santiago, Pagcor spokesperson, said that the move to suspend the granting of franchises had nothing to do with proposals to privatize the state-run gaming corporation.
He said Pagcor chair Cristino Naguiat had also ordered the review of the operations of existing casinos and VIP Clubs in places not frequented by foreign tourists.
?Honestly, there are no discussions yet on the privatization of Pagcor. The suspension is only to ensure that any licenses to be issued will have some rational basis,? Santiago told the Inquirer over the phone.
New guidelines
Under the previous Pagcor leadership, Santiago noted ?a certain degree of arbitrariness in the licensing process.?
?Pagcor is currently preparing rules of procedure and guidelines that will govern new licenses as well as current licenses,? he said.
Mr. Aquino has expressed alarm over the proliferation of casinos even in areas outside the usual tourist destinations. He has also raised the possibility of privatizing Pagcor, which is mandated to operate and regulate casinos.
Casino operators whose contracts are due to expire within the coming months are covered by Naguiat?s directive, according to Santiago.
?Those up for renewal would be carefully reviewed. We will impose the requirement that their operations should be in tourist destinations only,? he said.
Relocation plans
While there are no regulations barring Filipinos from casinos, Santiago said gambling establishments were primarily meant to entice foreign patrons.
?Of course, the government wants to maintain control over this kind of entertainment for the adults and foreigners,? he said.
Gaming facilities in areas visited by few tourists would be asked to relocate, he said.
The operations of ?e-games hubs,? or gaming stalls offering online casinos and electronic gaming, would also be evaluated.
Since its creation in 1977, Pagcor has become a stable source of revenues for the government, funding various civic projects of the Office of the President and other agencies.
