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There is no doubt Asian gaming has become the next development frontier. The unmitigated success in Macau, which saw revenues increases of 70 percent in February alone, is creating a template that is starting to be...

Philippines Wants To Outplay Macau

There is no doubt Asian gaming has become the next development frontier. The unmitigated success in Macau, which saw revenues increases of 70 percent in February alone, is creating a template that is starting to be used in other areas of the region.

In Singapore, two Integrated Resorts are under construction at a cost of more than $3 billion each, while many other areas are examining how they can get a piece of the action.

Now it looks as if the Philippines is changing its plans for a massive complex first announced in 2001 and is upping its scope from an initial $15 billion investment up to $20 billion, an incredible 33 percent jump. The project, expected to be completed by the end of 2009, is being created by the government's Philippine Amusement and Gaming Corporation (Pagcor).

The initial phase of the multi-pronged project will include a casino resort, hotels, and a theme park. Ground breaking on phase one is expected later this year.

The number is even more astounding after realizing the $20 billion investment equals 16 percent of the country’s total economic output. The project is being built on reclaimed long on Manila Bay and the addition to the project budget will increase an emphasis on non gaming amenities that has catapulted Las Vegas to become a destination attracting more than 40 million per year.

"The project is a shift [for Pagcor] from gaming into entertainment," Pagcor chair and CEO Ephraim Genuino told reporters at the Asian Gaming and Entertainment Plus Leisure Expo Manila. "We will form a Las Vegas in the Philippines."

The company also expects to help boost the countries tourism level from its current 2.5 million visitors up to 10 million by 2012. "We hope we can catch up with Singapore and Macau," he said.

Dubbed “Entertainment City,” the project will be called Pagcor City and be located on approximately 800 hectares land. It will also feature casinos presumably from the world’s biggest players when the bidding process is complete.

One company sure to throw its hat into the ring is Las Vegas-based Wynn Resorts. It’s already becoming a major player in Macau and is looking to expand across Asia. Legendary operator jack Binion, who is in charge of the Asian division of Wynn, is looking for new deals said his spokesperson Tim Shiah to the Manila Times. 

“Wynn Macau is actually looking into the Philippines. Jack Binion is director of Wynn International that’s why he’s been down here for the last couple of years and they’re looking [around],” Shiah said. “You know the biggest asset in the Philippines—and I can’t preach this loud enough—is the people here, the workforce,” he added.
Initial estimates for a Wynn Resort would be a modest $1.4 billion, which is nearly $1 billion less than the company spent to open its premier Las Vegas property two years ago. But it’s more in line with what has been spent thus far on its operation in Macau.
Pagcor’s Genuino also said the company has held conversations with Harrah’s Entertainment’s Caesars Palace division as well as Malaysian based Genting. The majority of the funding for the project will come from foreign investors from countries such as Japan, the United States and South Korea.  “Ninety percent of the funds for the project will come from foreign investors,” Genuino said.

Also, Genuino expects no resistance from the country’s church leadership. Though the country is predominantly Christian, he expects little resistance from the expansion of gaming from the Catholic Bishops Conference of the Philippines to oppose the development because the state-owned gaming agency is a strong supporter of church programs.

“The Church will understand it because we have been contributing a lot to their social projects," the Pagcor official said.

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