Philippines Launches Casino Operation on Boracay Island
The president of the Philippines, Rodrigo Duterte, has given the go-ahead for the casino industry to launch on the island of Boracay without restriction, this was following a prolonged period of anti-gambling rhetoric from the leader. The new pressures on the local economy inflicted by the COVID pandemic have caused a flurry of institutional changes in the country. In order to raise much-needed capital investment and reinvigorate tourism, the introduction of the island-based casino resort is seen as a great solution.
The casinos planned for opening in the Philippines will be packed full of luxury on a scale not witnessed in the current crop of venues. Bars, golf courses, luxury dining and all kinds of amenities will constitute the ambitious offerings in the integrated resorts. ©MJCouch/Pixabay
The island of Boracay is widely considered the top holiday island in the country and attracts a vast amount of organic tourist interest during normal times. Transforming this area into a high tax revenue holiday resort is the new objective of the current administration. Leveraging on the loosely applied gambling laws of the country, Duterte’s government is seeking a means to cover the immense deficit and ultimately build an industry that can compete against Macau for market share.
This dramatic shift in policy wasn’t foreseen by many business leaders within the Philippines, and some had all but given up on the introduction of a casino industry in the country. In the past Duterte has actively campaigned against the construction of casinos, taken steps to eliminate the POGOs from operating freely, and prevented foreign investors gaining access to the market. All this resistance has been against the backdrop of an unregulated gambling market that has become the fastest-growing in the Asian peninsula.
By giving the go-ahead order for casinos to operate on the island of Boracay, the president has ended an era of resistance towards the gambling industry in the Philippines. This period has seen the industry decimated, fans of gambling and stakeholders in its success will now be able to flourish within the far more favorable market conditions they now have.
New Gambling Resort Must Operate with Integrity
When it comes to launching the casino operation on the island of Boracay, the resort must operate with integrity if it is to be a sustainable project. At the core of these considerations will be the way the new casinos adhere to pandemic quarantine protocols and ensure the indoor venues are safe. Secondly, the incidence rate of underage gambling needs to be mitigated.
In these uncertain times it does not help that the authorities are refusing to offer any further enlightenment on how far along the proceedings with gambling companies they are. Of course, there are a number of high-profile and well-established interested parties in the potentially lucrative project. But with the
Strict and prolonged lockdowns have crippled the Philippines economy, and they are now in desperate need of drumming up new revenue streams to help the embattled depletion of tax revenues. With this approach locked in, the operational requirements to see the project brought to fruition are clear. With Duterte’s government now out of the resistance camp, a modernization and quality-enhancing effort can be properly launched.
Currently the powdery white sandy beaches of Boracay island are uninhabited, there is no casinos in site and the area is sparsely populated with tourists. Yet, there is a fundamental and seismic shift currently on the horizon. The 10-square kilometer area surrounded by its luscious turquoise waters is hoping to replace Macau as the primary gambling spot in Asia.
Several companies already possess provisional licenses for operating casinos in the Philippines. Despite the activity being outlawed, the authorities were still able to issue the lucrative assets on the prospect of the law changing one day in the future. Alliance Global Group, Leisure and Resorts World Corp and Galaxy Entertainment Group are the fortunate companies to hold the keys to this market. Following the announcements, each of them saw strong upwards movement in their stock prices.
Duterte Previously Rejected $500M Plan for Boracay Island
President Rodrigo Duterte has been faced with the possibility to open up Boracay island in the past, with a foreign investor in 2018 pledging $500M in direct investments to launch an ambitious resort project on the island. In a sign of the president’s distaste and resistance to the concept of commercialized gambling, he flat out rejected the proposal, and everything stopped in its tracks.
Alliance Global Group is currently in pole position to be the first company to break ground in the casino construction venture. The company is apparently laying the foundations for an enormous golf course and casino integrated resort. Key to the success of the venture will of course be the freedom of movement to and from the island, and with the pandemic still a threat in Asia, there are some doubts over the assurances being made.
With domestic players at gambling institutions still caught between some legal loopholes in the Philippines, the revenue models for the gambling industry on this island will rely heavily on foreign players. The relaxation of laws regarding travel in and out the country will greatly enable the successful delivery of this project.
