End of operating role should drive local casino industry to prosper at the expense of a languishing Macau casino market
As previous administrations failed on the issue of PAGCOR, the Philippines Amusement and Gaming Corporation, as regulator and operator of gaming properties in the country, there is now a serious questioning of the agency for it’s “conflicting” roles of judge and jury with suggestions of privatizing PAGCOR’s casino assets to help fund economic recovery.
Last Friday, during a Development Budget Coordination Committee briefing with the House Appropriations Committee last Friday, Finance Secretary Benjamin E. Diokno said that the government “will be very aggressive in our privatization effort,” just as PAGCOR’s new board was being appointed.
“We would like the economy to grow and to recover. So, if there are additional resources available to us — either through maybe new loans or maybe additional revenues coming from, say, privatization of some corporations — we would be willing to support a supplemental budget… Because if there are ready to implement projects, and we had the money, then better spend it now rather than, say, a year from now,” said Diokno to local media.
“PAGCOR’s new leadership will have to make known their plans moving forward. They should resolve the seemingly conflicting roles as an operator and regulator,” added Diokno.
The basic argument that, with PAGCOR’s privatization, accounting, audit, and other internal control of the entity would result in stricter and more efficient management, but the stronger argument, is that PAGCOR-owned casino assets would become more profitable should the government operation be privatized.
In the past, in 2018, the Philippines Government had recommended balancing of PAGCOR by separating the commercial and regulatory functions. According to estimates, privatizing the gaming operations of PAGCOR to raise an estimated P300 billion in revenue, around US$5.4 billion
With almost no support from the Government, the plan did not go through with the argument that the move might eventually result in loss of revenue for the country. The new Marcos administration seems inclined to break away from old inherited policies, and this time, PAGCOR might just act as regulator to ensure that in its single role, the industry might prosper at the expense of a languishing Macau casino market.
