Calls for a total ban on Philippine Offshore Gaming Operators (POGO) have received strong backing from the country’s Finance Secretary Benjamin Diokno. The Cabinet official said the government may look for other sources of revenue when the POGO industry is ultimately shut down.

POGO Risks Outweigh Benefits

POGOs generated nearly PHP4.44 billion (US$80.1 million) in tax revenue in the first eight months of 2022, up from PHP3.91 billion in the entire 2021. But Diokno believes the risks and social costs associated with the industry outweigh any benefit that the government gets from it. He told the “Kapihan sa Manila Bay” weekly news forum that the industry needs to be dismantled given the criminal activities linked to POGO firms which pose a threat to national security and taints the country’s reputation.

Diokno said there are other ways the government can collect significant revenue once POGOs cease their operations.

PAGCOR Keen on Punishing POGO Offenders 

The POGO industry has come under increased scrutiny in the Philippines after some operators were found to have been involved in organized crime, including human trafficking. Several government officials want POGOs banned from the country, with Senator Sherwin Gatchalian among the most vocal critics. 

Amid the numerous controversies hounding the sector, the country’s gaming regulator, the Philippine Amusement and Gaming Corporation (PAGCOR), has vowed to punish violators, especially those engaging in criminal activities. Recent actions from the agency resulted in the cancellation of the license of a third-party firm over its involvement in human trafficking which was uncovered in May.

Larry Silverstein and his real estate company Silverstein Properties recently announced plans to develop a casino in Midtown Manhattan, joining several other major bidders for one of three gaming licenses up for grabs in downstate New York. 

Mr. Silverstein has high hopes for his proposal which he said will greatly benefit the Manhattan community and New York City in general.

“Avenir” Project Key Details

Mr. Silverstein has joined forces with London-based businessman Watche “Bob” Manoukian for the casino development named “Avenir”. This would mark Silverstein’s first foray into the casino world, but his partner is no stranger to running gaming operations being the owner of Parx Casino in Pennsylvania. 

The Avenir project would feature two 46-storey towers connected by a public sky bridge, a hotel, and a 100-unit affordable housing complex, among other amenities. The base would be an eight-storey complex that would house restaurants, an entertainment area, and a casino.

Ideal Location

The Avenir development will be built at a site at 11th Avenue and 41st Street which is owned by Silverstein. Proponents of the project say it’s the perfect location for a casino as it encompasses neighborhoods but is not really situated at the center of communities. 

This means the project would not provoke serious concerns from residents, unlike its rivals, including the Times Square casino proposal from SL Green, Caesars, and Jay-Z.

Macau casino operators had earlier cut ties with junkets due to the crackdown on VIP gamblers but it looks like Galaxy Macau has gone back to targeting VIP players.

Galaxy Macau’s VIP gaming zone is currently hosting a junket promoter. The third-party gaming promoter, named the “United Promotor de Jogo Sociedade Unipessoal Limitada” is controlled by Kwok Chi Chung, President of the Macau Association of Gaming and Entertainment Promoters.

Junket Operating at Galaxy Macau’s VIP Zone

Mr. Kwok revealed that his company entered into a junket partnership with Galaxy Macau before the start of the new gaming concessions on January 1, 2023. The junket has been operating “smoothly” so far at the Yinzuan Club VIP area of the Cotai resort, he said. The gaming promoter is bringing customers from Hong Kong and mainland China. 

Yinzuan Club is located in Galaxy Macau’s VIP east wing near the Diamond Lobby, the same area where the casino’s foreigner-only gaming zone, Noble International Club is situated. 

No Comment Yet From Galaxy Macau

Mr. Kwok’s firm is based and licensed in Macau and is currently the only junket promoter at Galaxy Macau. The operator has yet to confirm whether it would cater to more junkets in the future.

The confirmation from Mr. Kwok comes as Macau’s junket industry continues to shrink following the arrests and sentencing of two former junket moguls. 

The Macau government has introduced new rules regarding junket operations, with promoters only allowed to partner with just one casino operator.

Nagasaki’s casino integrated resort (IR) development plan is still under evaluation by the central government more than a year after it was submitted to the national authorities for approval. The city’s prefectural government remains hopeful that the IR proposal will get the green light, despite the challenges.

Investment Consortium Involved in Nagasaki IR Project Could Collapse

Among the main issues that may have caused the central government to delay its decision on Nagasaki’s IR proposal is the uncertainty surrounding its funding scheme. Credit Suisse AG, which was previously named by the Nagasaki prefecture as one of the financial arrangers for the project, was recently acquired by UBS Group AG.

Toru Mihara, Chairman of Japan’s National Council on Gaming Legislation, previously warned that if concerns about the funding scheme are not promptly addressed, and the proposal does not obtain approval from the central government within the next few months, the consortium of investors involved in the project could collapse. 

Nagasaki’s IR Plan Still Has a Chance

Osaka, which also submitted its IR plan to the national government in April 2022, already received certification from the Ministry of Land, Infrastructure, Transport, and Tourism. 

Osaka’s IR proposal was approved in April this year after securing 657.9 points during the assessment process, slightly above the required 600 points. But Nagasaki is still awaiting updates from the national authorities as to the status of its IR plan.

In a recent Q&A session of the Nagasaki prefectural assembly, officials said they believe the city’s IR proposal will eventually be approved.

Casino operators in Macau are now investing more in their non-gaming offerings as market competition intensifies. That’s according to Carlos Siu Lam, associate professor at Macao Polytechnic University’s Centre for Gaming and Tourism Studies. 

Increase in Entertainment Events 

Since COVID-19 restrictions were lifted in January 2023, Macau’s casino industry has seen an increase in non-gaming activities and events, including concerts and performances by various local and international artists held at arenas or banquet halls. 

In May, the Galaxy Arena at Galaxy Macau hosted two sold-out concerts by the South Korean girl group Blackpink. Galaxy Macau, located in Cotai, is owned by Galaxy Entertainment Group Ltd, one of the city’s six casino concessionaires. The company will organize more entertainment and cultural events in the future under strategic agreements with entertainment brands and entities. 

The other casino operators in Macau are also following a similar route in a bid to attract younger customers and families from China and other Asian nations, Mr. Siu said. 

Non-Gaming Offerings Will Bring More Revenue 

In his analysis, Mr. Siu stated that Macau’s casino concessionaires are now leaning towards enhancing their non-gaming offerings as the current consumer market has lower gambling spend. 

The move will still benefit the operators revenue-wise, according to Mr. Sui, as it can be a way to bring more customers to gaming venues, especially if entertainment perks are packaged with gambling.