The state-owned Casino Filipino gaming facilities are being sold, according to Alejandro Tengco, chairman and CEO of the Philippine Amusement and Gaming Corp (Pagcor), the nation’s casino regulator. During the opening ceremony of the Global Gaming Expo (G2E) Asia 2023 Special Edition: Singapore, Tengco announced this information. The decision to sell the public-sector casinos is a part of Pagcor’s plan to divide the roles of regulation and operation, and it intends to generate around PHP80 billion (US$1.42 billion) from the deal.
Significant Interest in the Casino Sale
Tengco claims that Pagcor has already gotten a lot of interest expressions for the sale of state-owned casinos. He stated that the company is now assessing these strategies and anticipates that the process will start around the middle of 2025. Although the precise number of parties interested has not been made public, Tengco stated that both foreign and local groups have expressed a strong desire to purchase the casinos.
Offering in Bundles
Tengco responded when asked how the assets of Casino Filipino will be sold, he said , the current plan is to offer them as a bundled package. To maintain impartiality throughout the process, this decision was made. Tengco stated that some casinos are performing better than others even if all the casinos are making money. Therefore, grouping them together gives potential buyers a balanced opportunity.
Issues and Opportunities for Buyers
Although the auction offers a lucrative investment opportunity, brokerage firm Maybank Securities Inc. has issued a warning that the total estimated worth for the 43 prospective participating venues may be high. Potential purchasers might incur large fees for renovation and the incorporation of auxiliary technology. However, if the government moves forward with the sale, Newport World Resorts’ chief operating officer, Hakan Dagtas, showed interest in buying the state-owned casinos. Newport World Resorts is a well-known casino and entertainment complex in Manila.
Making Use of Profits for National Development
Benjamin Diokno, the Philippines’ finance secretary, has previously indicated that the Maharlika Investment Fund, a future national development programme, may be funded with the proceeds from the privatization of state-owned casinos. This possible expenditure of money demonstrates the government’s resolve to use the proceeds of the sale to fund important initiatives that advance the growth and development of the economy of the nation.
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